Nuggets and Peyton Watson reportedly face daunting $7.5M contract rift as stalemate continues originally appeared on The Sporting News. Add The Sporting News as a Preferred Source by clicking here.

The biggest free agency storyline coming out of Denver this summer has been the team's inability to add significant pieces and the ongoing contract situation surrounding restricted free agent Peyton Watson. The 23-year-old is coming off a breakout season, but the Nuggets may not be able to offer him the contract he wants.

It is a shame that the Nuggets have put themselves in such a difficult financial position. The most they appear willing to offer Watson is around $18 million per year.

“The Nuggets' offer for Peyton Watson remains in the $16-18 million per year range, per The Stein Line. Denver and Watson's representatives, Klutch Sports, are dug in on their value. If Denver doesn't want to cooperate on a sign-and-trade, Watson could take the qualifying offer," NBA reporter Evan Sidery wrote.

For this reason, several teams around the league have expressed interest in a potential sign-and-trade. That list includes the Los Angeles Clippers, Atlanta Hawks, Milwaukee Bucks and Cleveland Cavaliers.

“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.

That is encouraging news for the teams hoping to acquire Watson. The Nuggets and Watson currently have a reported $7.5 million gap in their desired annual salaries.

“The Nuggets are currently offering Peyton Watson a four-year, $70M contract, per sam_amick. Denver is reportedly valuing Watson at $17.5M annually, while the 23-year-old wing is likely seeking closer to $25M in average annual salary on his next deal,” NBA writer Jake Weinbach posted.

Denver and Watson remain far apart with training camp approaching in a little over a month. However, the Nuggets' financial situation leaves them with very little room to increase their offer.

Watson can return to Denver on the qualifying offer if he chooses, but that would leave him with less long-term security and money than he is seeking. It remains to be seen what Watson ultimately decides, but with a reported $7.5 million difference between the two sides, a long-term agreement does not appear to be close.

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