Peyton Watson’s contract demands in free agency have been revealed

Peyton Watson appears to want a number that the Denver Nuggets cannot afford to pay.

The Nuggets restricted free agent forward Watson is seeking a significant contract this offseason. Watson wants over $25 million per year, veteran NBA writers Marc Stein and Jake Fischer reported to Substack on Saturday.

Still just 23, the 6-foot-8 Watson is perhaps the most intriguing RFA on the market this summer. After going with the No. 30 overall pick in the 2022 NBA Draft, Watson just completed his fourth career season in Denver.

That 2025-26 campaign marked Watson’s best one yet. Seeing extended minutes for the first time in his professional career, Watson averaged 14.6 points, 4.9 rebounds, and 2.1 assists per game. He also continued his arc as an elite defender with his ability to block shots, play passing lanes, and switch anything on the perimeter.

That said, the Nuggets are knocking on the door of the second apron of the luxury tax as they are already paying five different players (Nikola Jokic, Jamal Murray, Aaron Gordon, Cam Johnson, and Christian Braun) over $20 million per year. Making it six with Watson would make Denver’s roster untenable from a long-term team-building standpoint.

Because Watson is an RFA, that means the Nuggets can match any offer for him. But Watson leaving Denver has been the expected outcome for some time now, and his sizable (but far from unreasonable) contract demands may be further accelerating things in that direction.