4 years, $70 million not enough! Watson may accept $6.5 million qualifying offer: becomes unrestricted free agent next summer

On July 27, Beijing time, according to renowned reporter Stein, Nuggets forward Peyton Watson, limited by his restricted free agent status and limited market offer space, is seriously considering accepting the team's $6.5 million qualifying offer to become an unrestricted free agent next summer.

Stein said the Nuggets initially offered Watson a contract extension of about four years and $70 million. He also mentioned that this contract amount is far lower than the five-year, $125 million extension the Nuggets gave Braun last fall. Stein previously reported that Watson expected to get a higher salary than Braun when entering free agency. Sources say he wants at least a $25 million annual salary (on par with Braun).

The Nuggets' salary situation becomes tricky: the team decided to match the offer sheet that the Thunder gave to Spencer Jones, a two-year contract totaling nearly $12 million. This operation triggered the second apron for the Nuggets, and the team's estimated luxury tax bill jumped from $36 million to $68 million.

If they reach a new extension with Watson, the team's luxury tax total will increase significantly, and the Nuggets may be forced to take salary-cutting measures now or in the 2026-27 season. ESPN salary expert Marks analyzed: even if Watson only chooses to accept the qualifying offer, the Nuggets' estimated luxury tax penalty will be around $112 million.

If the Nuggets believe they cannot re-sign Watson at an ideal price, the team has been considering a sign-and-trade plan to get corresponding assets in return. It is rumored that the Bucks, Clippers, and Hawks have all expressed interest in Watson.

Another salary expert, Gozlan, said: as long as the Nuggets' total salary remains above the second apron, the Nuggets cannot receive any players under contract in a sign-and-trade deal for Watson. The Nuggets must first find a way to reduce their salary below the second apron before this sign-and-trade can be completed.

Apart from the team's cornerstone Jokic, the Nuggets' highest-paid players next season are Murray ($50.1 million), Gordon ($32 million), and Cameron Johnson ($23 million). Despite constant offseason rumors, the Nuggets have no intention of trading away any high-salaried veterans so far.

Denver Post reporter Durado pointed out that since the current CBA established the second apron, the Nuggets have never finished a season above this red line. Once this clause is triggered in the 2026-27 season, the Nuggets' 2034 first-round pick will be frozen and cannot be traded.