Nuggets' Peyton Watson gets major sign-and-trade update amid free agency stalemate with Denver originally appeared on The Sporting News. Add The Sporting News as a Preferred Source by clicking here.

The Denver Nuggets and 23-year-old restricted free agent Peyton Watson have been one of the more interesting situations to follow this summer. Both sides are trying to determine whether they can reach an agreement on a new contract or whether it is time to part ways.

The Nuggets want to keep Watson, but they are in a difficult financial position. At the same time, several teams around the NBA have expressed interest in acquiring the young forward.

“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.

Denver has offered Watson a new contract, but the deal is nowhere near what Watson and his camp are seeking.

“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.

A sign-and-trade may be the only realistic path for Watson to leave Denver this offseason. However, the Nuggets have limited flexibility to make a deal work because of their current financial situation. Of the remaining restricted free agents, Watson appears to be the most likely to eventually be moved.

“Restricted free agency stalemates for Jalen Duren, Peyton Watson and Bennedict Mathurin are expected to continue on into September. Both sides for each negotiation are very dug in at this point. Watson is the most realistic RFA who could eventually be moved via sign-and-trade,” Sidery posted.

This could ultimately work in Watson’s favor, as a sign-and-trade would give him the opportunity to land with a team willing to pay him closer to his desired price. The Nuggets clearly do not want to lose Watson, but their financial limitations could prevent them from giving him the contract he wants.

The 23-year-old is an athletic defender who can attack the rim with authority and has developed into an intriguing young two-way player. If Denver were in a position to comfortably keep him, there is a strong argument that a deal would already be completed. Instead, Watson and the Nuggets remain at a stalemate, and the longer the situation continues, the more likely a sign-and-trade becomes.

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