This year’s offseason has been particularly challenging for the Denver Nuggets. And with the ongoing contract negotiations with Peyton Watson falling through at every turn, things seem to be getting worse.
The Nuggets initially seemed committed to bringing back the talented 23-year-old in free agency, but the team’s financial condition put a cap on how much they could offer him. Hence, even though Watson’s demands have hinted at a contract worth over $25 million annually, the Nuggets’ offer has been less than enticing.
Needless to say, this has forced a stalemate. However, according to a recent update by The Athletic’s Sam Amick, the Nuggets seem to be losing their nerve, as they have reportedly offered Peyton Watson and his camp a new deal. Amick wrote:
“Maybe the Denver Nuggets’ restricted free-agent wing eventually gets the money and role he’s seeking by way of a sign-and-trade, with the Cleveland Cavaliers, Milwaukee Bucks and L.A. Clippers all remaining in the hunt for the 23-year-old. It’s possible he strikes a deal with the Nuggets, whose present offer of four years, $70 million, with a team option in the fourth season, per a league source, falls well short of where he sees his worth.”
Compared to their previous offer of a five-year, $70 million deal, the Nuggets have marginally hiked up their proposal, presenting a four-year, $70 million deal with a team option in the final year. Although this is a better offer than the previous one, at an annual value of $17.5 million, it is still significantly less than what Peyton Watson is expecting.
So where does this leave the Nuggets presently?
Realistically, it leaves them nowhere. With such an offer, Denver has done virtually nothing to move the needle in this conversation. Now, given that teams like the Cavaliers, Bucks, and the Clippers are still lurking as promising landing spots, Denver may have more reason to be afraid.
The Clippers Can Present Peyton Watson With A Better Deal
As mentioned above, three teams are currently listed as active suitors for Peyton Watson. Although Amick noted that virtually every one would be inclined to acquire the 23-year-old wing in a sign-and-trade deal, there is reason to believe the Clippers could force Denver’s hand.
Amick reported on L.A.’s current payroll and how it affects their standing by stating:
“The Clippers, meanwhile, have the requisite financial flexibility and draft capital to get something done but are also juggling much larger issues at the moment.”
The Clippers’ biggest problem at the moment pertains to the ongoing investigation into Kawhi Leonard‘s salary cap circumvention. But given the recent reports on the matter, there is good reason to believe this trade should go through without any further obstacles.
So how does this impact the Clippers’ current stance?
If the Kawhi Leonard-Raptors deal is finalized, the Clippers will have a payroll of $156.6 million, which is already $8.4 million below the salary cap. This already puts them in a phenomenal position to offer Peyton Watson a sizable contract. But L.A. also boasts a $17 million trade exception gained from John Collins‘ move to the Detroit Pistons.
Thus, on paper, the Clippers could easily meet Watson’s demands and absorb a portion of his new contract by using the trade exception.
Although Denver is only interested in moving Peyton Watson in a sign-and-trade deal, the Clippers would have the option to present the 23-year-old with an offer sheet. In this scenario, the Nuggets would be forced to either match the offer and face the exorbitant luxury tax bill that would follow or let Watson walk.
In theory, this could be a promising framework for the Clippers to land Peyton Watson this summer. Still, this situation is largely dependent on when the results of the investigation involving Leonard are finally announced. Should matters be delayed any further, there remains a decent chance that the Bucks or the Cavs could swoop in and acquire the forward in a sign-and-trade deal by leveraging their assets.