This year’s free agency period has been buzzing with activity, but the situation has been relatively quiet for restricted free agents in the market. Although players like Jalen Duren and Peyton Watson have garnered interest from teams, their contracts limit their opportunities to seek new avenues.
With specific reference to Peyton Watson, reports indicated that the Nuggets are prepared to match any offer for him. While this would typically indicate Denver’s commitment to keeping him, an update by The Athletic’s Sam Amick suggests otherwise. He wrote:
“The Denver Nuggets intend to match any offers for restricted free agent Peyton Watson when the NBA’s moratorium lifts on Monday, said league sources who were granted anonymity to discuss the ongoing negotiations. However, the Nuggets and Watson’s agent, Rich Paul of Klutch Sports Group, remain apart in contract negotiations, the sources told The Athletic, and Denver is open to a sign-and-trade for the 23-year-old forward.”
This is an intriguing approach by the Nuggets. Although the team has explicitly shown a desire to retain the talented young forward, their current salary cap situation limits how much they can offer him. Should another team present a larger offer, which is likely, Denver could match it by offloading some of its assets. From a competitive standpoint, however, this may not be in their best interests.
Amick noted that Denver’s current approach is very similar to how the Utah Jazz dealt with Walker Kessler‘s free agency. Although Utah stated that it wished to retain Kessler, the Jazz willingly traded him to the Lakers in a sign-and-trade deal to acquire some assets.
Hence, there is some reason to believe the Nuggets may be exploring ways to acquire assets for Peyton Watson. But how many teams are willing to pursue Watson at this stage?
What Can The Nuggets Get For Peyton Watson?
Amick reported that currently, only two teams are capable of presenting Peyton Watson with an offer sheet.
“While it’s unclear how many teams are pursuing Watson, only the Brooklyn Nets and LA Clippers have the salary-cap space to submit the offer sheet he wants,” he reported.
“The Clippers, league sources said, have shown legitimate interest in Watson but are also navigating their own restricted free agency situation with Bennedict Mathurin, which complicates matters. Several teams are known to have registered interest in a sign-and-trade for Watson.”
While Amick’s report about the teams that are interested in doing a sign-and-trade deal for the forward is largely ambiguous, the Los Angeles Clippers find themselves in a unique position.
The Clippers made some big moves by trading Kawhi Leonard to the Toronto Raptors, acquiring Brandon Ingram, Gradey Dick, and draft capital in return.
With Ingram’s arrival, the Clippers have added a star-caliber wing to their lineup, effectively making a player like Bennedict Mathurin redundant. Thus, to add more flexibility, pursuing a player like Peyton Watson, who currently has more upside, may seem more enticing.
The Clippers currently have a payroll of $136.3 million, which is roughly $28.7 million under the cap. When noting that Watson is demanding upwards of $25 million annually in his contract extension, Los Angeles is positioned to make such an offer. But when factoring in Denver’s inclination for a sign-and-trade deal, another avenue presents itself.
The Clippers could consider offering Bennedict Mathurin (sign-and-trade) and draft compensation (potentially a first-round pick and a pick swap) to the Nuggets for Peyton Watson.
Mathurin’s new extension would be roughly $15-$16 million per year. With the contract value roughly $10 million below Watson’s demands, along with draft compensation, Denver may see merit in making this deal.
Alternatively, Denver can choose to receive draft capital instead of salaries to mitigate its current cap issues. This would give them the flexibility to retain some key players.
Amick also mentioned the Nets as a potential suitor for Watson, though, with their $164.4 million payroll, they have less flexibility than the Clippers. Although they have the assets to pull off a sign-and-trade deal with the Nuggets, Los Angeles has more cap space to absorb Watson’s incoming cap hit at this stage.
