Nikola Jokić woke up this morning and had quite a bit to read. He certainly won’t like it, at least not at first. The Denver Nuggetshave traded Peyton Watson!
After a months-long saga, the restricted free agent will continue his career with the Cleveland Cavaliers, with whom he will sign a four-year, $88 million contract. American media, led by ESPN’s Shams Charania, confirmed the major trade involving several teams.
As part of the trade, Max Strus will leave Cleveland for the Los Angeles Clippers, while Denver will receive an unprotected 2031 first-round pick from the Cavaliers, a 2032 second-round pick from the Sacramento Kings and Julian Reese from the Washington Wizards. The Nuggets will immediately waive Reese from his two-way contract.
As part of the larger deal, the Cavaliers are sending Tre Mann, the Clippers’ 2027 second-round pick and cash to Washington, receiving Cam Whitmore in return.
The End of the Watson Saga
After nearly three months of speculation, leaked offers, talk of potentially accepting a qualifying offer and negotiations involving contracts worth between $70 million and $112 million, the saga surrounding the 23-year-old forward has finally come to an end.
Watson was one of the Nuggets’ priorities this summer. Many saw him as Denver’s last realistic opportunity to develop another homegrown star alongside Nikola Jokić.
Instead, the Nuggets received one unprotected first-round pick and one second-round pick for him. That is significantly less than what had previously been discussed as the desired return, namely a package in the range of what a trade for Walker Kessler could potentially bring.
It All Comes Down to Money
By letting Watson go, the Nuggets avoided massive luxury-tax penalties. According to projections, retaining him could have cost the team around $238 million in taxes alone, with a total payroll of approximately $220 million.
The Kroenke Sports & Entertainment ownership group was evidently unwilling to pay such a price.
Watson averaged 14.6 points, 4.9 rebounds and 2.1 assists in 54 games last season, while shooting 49.1 percent from the field and an excellent 41.1 percent from three-point range. He particularly stood out in January, when he averaged 21.9 points during Jokić’s absence due to injury.
The 6-foot-8 forward, capable of contributing on both ends of the court and a member of the 2023 championship team, will now play alongside Donovan Mitchell and, apparently, James Harden.
For Cleveland, which reached the Eastern Conference Finals last season, Watson represents a significant reinforcement on the wing.
Denver, on the other hand, enters the new season even more reliant on Nikola Jokić, Jamal Murray, Aaron Gordon, Christian Braun and Cameron Johnson, but without one of the most promising young players the club developed during the Jokić era.
Ultimately, it is difficult to view the Nuggets’ move as anything other than classic payroll shedding packaged as a trade.
Denver is now cheaper and thinner.
But definitely cheaper.
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