The Denver Nuggets are seeking significant compensation for Peyton Watson if they are forced into a sign-and-trade scenario, with Jake Fischer reporting that the team wants two first-round picks in any deal involving the restricted free agent forward.

Denver’s asking price reflects how highly the organization values Watson after his breakout 2025-26 season. The 23-year-old wing developed from a defensive specialist into one of the Nuggets’ most important two-way players, averaging career highs of 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks in 54 games.

Watson also made a major jump as a shooter, connecting on 49.1% of his field-goal attempts and 41.1% of his three-point attempts. He started 40 games and finished fourth on Denver in scoring behind Nikola Jokic, Jamal Murray and Aaron Gordon.

The Nuggets entered the offseason with interest in retaining Watson long term. Marc Stein previously reported that Denver’s opening contract proposal was believed to be worth approximately $70 million over four years, although Watson has considered playing the 2026-27 season on his qualifying offer to reach unrestricted free agency next summer.

Choosing the qualifying offer would give Watson more control over his next contract, but it would also delay his financial security. Denver would maintain matching rights if another team presents an offer sheet, giving the Nuggets leverage throughout negotiations.

Rival teams have monitored Watson’s situation, with the Milwaukee Bucks, Los Angeles Clippers and Atlanta Hawks among those previously linked to the versatile forward. A sign-and-trade would require Denver’s cooperation, and the Nuggets’ reported price indicates they view Watson as a valuable long-term piece rather than a player they are willing to move cheaply.

Fischer previously compared Denver’s valuation of Watson to the compensation involved in the Walker Kessler sign-and-trade between the Utah Jazz and Los Angeles Lakers, which included two unprotected first-round picks and two first-round pick swaps. The Nuggets’ reported preference for two first-rounders alone suggests they believe Watson’s age, defensive impact and offensive development justify a premium return.

Watson was selected by Denver with the 30th overall pick in the 2022 NBA Draft and completed his rookie-scale contract worth approximately $11.3 million. His improvement came at an important time for the Nuggets, who finished the 2025-26 regular season with a 54-28 record and the No. 3 seed in the Western Conference before losing to the Minnesota Timberwolves in six games in the first round.