The Denver Nuggets may have developed Peyton Watson into a breakout wing, but keeping him could prove far more difficult than unlocking his potential ever was. As Denver stares down a looming luxury-tax squeeze, the Los Angeles Lakers are emerging as a well-positioned threat to capitalize.
Writing for ESPN, Kevin Pelton identified Watson as a realistic offseason target for the Lakers, despite the complexities of restricted free agency. Pelton framed the situation bluntly while examining how Los Angeles could reshape its roster around Luka Dončić this summer.
“Restricted free agency is trickier for a team such as the Lakers that can’t afford to wait out the matching period, but Peyton Watson, an L.A.-area native who played at UCLA, might be gettable via sign-and-trade because of Denver’s tax situation,” Pelton wrote.
That tax situation is no small concern. Denver already has five players slated to earn more than $20 million during the 2026-27 season: Nikola Jokić, Jamal Murray, Aaron Gordon, Cameron Johnson, and Christian Braun. Adding a sizable new deal for Watson would push the Nuggets deeper into a financial bind that ownership may be reluctant to absorb.
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Watson’s Breakout Is Driving the Market
Watson’s on-court growth has only intensified the pressure. Amid a heavily injured Denver Nuggets roster, the 22-year-old wing has posted career-best numbers, averaging 14.9 points, 4.9 rebounds, and two assists while shooting 49.6 percent from the field. His two-way versatility, length, and defensive upside make him exactly the type of wing contenders covet.
NBA insider Jake Fischer first spotlighted the league-wide curiosity surrounding Denver’s ability to retain Watson, noting that rival executives are already circling.
“It must be said, though, that rival executives are increasingly curious about Denver’s likely struggles to retain Peyton Watson this summer given the fourth-year swingman’s recent breakout play amid all of the Nuggets’ health woes,” Fischer wrote. “Sources say teams that are projected to have cap space, notably such as the Lakers, are already preparing interest.”
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Why the Lakers Are Lurking
The timing aligns neatly for Los Angeles Lakers. With signs pointing toward LeBron James exiting this summer and several expiring contracts on the books, Los Angeles is projected to open roughly $55 million in cap space, with Austin Reaves expected to be a long-term priority.
Dan Woike of The Athletic added another layer, suggesting the Lakers could pursue restricted free agents through sign-and-trade scenarios to bypass offer-sheet complications.
“They could engage with restricted free agents like Denver’s Peyton Watson,” Woike wrote, “and the Lakers could try to bypass those steps with draft capital in sign-and-trades.”
The last time the Lakers set themselves up in a similar manner, they made a run at Kentavious Caldwell-Pope and Danny Green to add promising wing defenders on the perimeter to fit alongside LeBron James and Anthony Davis on their way to becoming the 2020 NBA champions. Now they look to re-enact that impactful offseason this time building with Luka Doncic at the forefront, with Reaves as his likely co-star.
Denver’s financial math is tightening. Watson’s value is rising. And the Lakers are quietly positioned to strike. For Rob Pelinka, the noise surrounding Denver’s cap sheet may sound less like concern and more like opportunity.