The Nuggets continue to discuss potential Peyton Watson sign-and-trade scenarios with multiple teams, according to ESPN’s Shams Charania, who reports that Denver is in “active talks” with those rival clubs.
Charania specifically lists the Cavaliers, Bucks and Clippers as three of the teams pursuing the restricted free agent forward. All three clubs have been previously linked to Watson.
Although it’s long been assumed that Denver’s preference would be to retain Watson, the two sides reportedly have a gap in perceived valuation on his next deal. The Nuggets are said to be offering something in the $16-18MM range, whereas Watson is hoping for a more lucrative contract.
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Charania’s report about Watson was a bookend to his Sunday night story about Lonnie Walker IV agreeing to a one-year deal with Denver. According to Bennett Durando of The Denver Post (Twitter link), the veteran guard will be signing a non-guaranteed training camp deal with the Nuggets and will be competing for a roster spot. While Walker will occupy a roster spot either way once the deal is official, there are a few notable difference between a training camp deal and a typical non-guaranteed standard contract.
As Luke Adams explained yesterday in updated our glossary entry on Exhibit 9 agreements, an Exhibit 9 clause protects an NBA team in the event that a player suffers a significant injury in training camp. If a player on a standard non-guaranteed contract without an Exhibit 9 clause suffered such an injury, his club would be required to pay him his salary until he’s healthy enough to play or until the end of that season, whichever comes first. If the injured player’s contract includes Exhibit 9 language, however, his team could waive him and only be on the hook for a one-time payment of $15K.
Exhibit 9 contracts also don’t count against the salary cap, which is an important consideration for the Nuggets, who are currently the only NBA team over the second tax apron. If Walker makes the team out of camp, his Exhibit 9 deal would be converted into a typical non-guaranteed contract. The Exhibit 9 protection wouldn’t carry over into the regular season.
Reacting to the news of Walker’s signing, Harrison Wind and Adam Mares of DNVR Sports (YouTube link) wondered how the 27-year-old’s addition would impact former first-round pick Julian Strawther, who’s eligible this offseason for a rookie scale extension. Strawther’s points and minutes per game decreased from 2024/25 to 2025/26 in part because he was outplayed by veteran wing Tim Hardaway Jr., who signed with Miami this summer. Strawther, 24, will be a restricted free agent in 2027 if he doesn’t sign an extension.