The Denver Nuggets have a big decision to make when it comes to their young veteran, Peyton Watson.
Playing on the final year of his contract, Watson is set to become a free agent. However, he’ll be restricted, giving the Nuggets an opportunity to match any offer he agrees to outside of Denver.
With the regular season winding down, what is Denver thinking regarding their future with Watson? NBA Insider Michael Scotto offered the latest on that front.
The Latest on Peyton Watson’s Future With The Nuggets
GettyNEW YORK, NEW YORK – FEBRUARY 04: Jalen Brunson #11 of the New York Knicks looks to pass the ball past Peyton Watson #8 of the Denver Nuggets during the first quarter at Madison Square Garden on February 04, 2026 in New York City. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Pamela Smith/Getty Images)
“Peyton Watson is going to be one of the top restricted free agents. A young guy who has really burst onto the scene, having a career year. I’ve had plenty of conversations with Denver throughout the season. They want to keep this guy,” Scotto said this week.
That feels like an obvious move for Denver, considering how year four has gone for Watson so far.
In 2025-2026, Watson has logged 54 appearances, with 40 as a starter. He is seeing the court for 29.6 minutes per game.
The 23-year-old is shooting 49.1% from the field and hitting on 41.1% of his threes, taking 3.6 attempts per game. Watson is posting 14.6 points per game.
Beyond his scoring, the veteran guard has come down with 4.9 rebounds per game and produced 2.1 assists per game. He is also averaging 1.1 blocks per game.
What Is Watson’s Current Contract With The Nuggets?
GettyWASHINGTON, DC – JANUARY 22: Peyton Watson #8 of the Denver Nuggets celebrates with Aaron Gordon #32 after a play against the Washington Wizards during the second half at Capital One Arena on January 22, 2026 in Washington, DC. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Scott Taetsch/Getty Images)
The Nuggets acquired Watson from the Oklahoma City Thunder. Coming out of UCLA in 2022, Watson was selected in the first round of the NBA Draft with the 30th pick. His draft rights were moved to the Nuggets, who invested JaMychal Green and a 2027 protected first-round pick in Watson as a rookie.
Watson’s first contract was for four years, worth $11.2 million. He is currently playing on a $4.3 million player option.
There will be a substantial increase in pay for Watson’s services beginning in 2026-2027. He’ll get it with Denver or somewhere else.
It’s unclear what Watson’s market value could be at this time, but it’s apparent that the Nuggets might have to make some moves to create room in order to keep Watson around for the long haul.
“Peyton Watson is going to be their guy that they are going to want to lock up for sure,” Scotto stated. “A younger guy on the rise that’s going to get paid big bucks this summer.”
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