Cavs, Clippers, Bucks get major NBA champion Peyton Watson update after $70M Nuggets offer originally appeared on The Sporting News. Add The Sporting News as a Preferred Source by clicking here.

The Denver Nuggets have been plagued by financial hurdles throughout the offseason. Denver is over the second apron, which has made it extremely difficult for the franchise to make meaningful additions to the roster.

The Nuggets have made only one signing this offseason, essentially because their financial situation has left them with very few options. It is one of the most difficult financial positions the franchise has ever been in.

“The Denver Nuggets were in a tough financial position before the offseason got underway, and by re-signing Spencer Jones to a two-year, $12 million deal, they slid into the second apron with a projected luxury tax penalty of $68 million, the highest in franchise history. However, this is all with two roster spots still to fill," SI's Logan Struck wrote.

Denver is unlikely to be able to bring Peyton Watson back if the two sides cannot agree on a contract. The Nuggets are limited financially, while teams such as the Los Angeles Clippers, Milwaukee Bucks and Cleveland Cavaliers have expressed interest in acquiring Watson through a sign-and-trade.

“The Denver Nuggets remain interested in retaining restricted free agent forward Peyton Watson amid sign-and-trade interest from the Milwaukee Bucks, Cleveland Cavaliers, Atlanta Hawks, and Los Angeles Clippers. Denver’s price tag in any sign-and-trade scenario has shifted to at least one first-round pick and one notable player, per multiple reports, and confirmed by HoopsHype,” HoopsHype’s Michael Scotto wrote.

The good news for those teams is that Watson and his camp have already declined the Nuggets' latest offer.

“The Nuggets have offered Peyton Watson a four-year, $70 million contract, which includes a team option in 2029-30, per @sam_amick. Watson and Klutch Sports declined that offer continuing to seek larger annual pay elsewhere via sign-and-trade,” NBA reporter Evan Sidery wrote.

This puts the Bucks, Clippers and Cavaliers firmly in the mix for Watson, as no long-term agreement appears to be close between him and Denver. At 23 years old, Watson is coming off a breakout season and is looking to take another step forward in a bigger role.

Ultimately, it could come down to which team can put together the best trade package for Denver. The Nuggets are in a difficult financial position, so any team acquiring Watson could potentially have to take on a contract that helps Denver reduce its financial burden.

More NBA news:

• Nuggets' Peyton Watson gets $70M contract update as Denver's lackluster offseason continues

• Lakers predicted to trade Bronny James for $298M four-time ex-Warriors champion in 4-team deal

• Warriors predicted to sign $342M veteran elite shooter, 3-time All-Star to pair with Steph Curry

• Thunder legend Russell Westbrook announces shocking retirement after future uncertainty