New NBA Rumors Reveal Lakers, Bulls, Nets Target Ahead of 2026 Free Agency

The Denver Nuggets might have to match an offer sheet in order to retain pending restricted free agent Peyton Watson this summer.

The Los Angeles Lakers, Chicago Bulls and Brooklyn Nets are "potential suitors that are likely to have the requisite spending power to present an offer sheet" to Watson, NBA insider Jake Fischer reported Wednesday for The Stein Line.

"In my conversations with various teams during the season, I've heard raves for the strides Watson has made as a ballhandler and shot-creator and how he operates in isolation on the perimeter with tangible comfort and poise," Fischer reported.

According to Fischer, the Lakers and the Chicago Bulls were interested in trading for Watson ahead of the February trade deadline.

Fischer noted, however, that the Bulls might be changing their offseason direction after firing president of basketball operations Artūras Karnišovas and general manager Marc Eversley.

After playing this season under a $4.4 million club option, Watson is set to hit restricted free agency ahead of his age-24 season in 2026-27.

Watson has been sidelined since April 1 with a hamstring injury that has kept him out of the Nuggets' first-round series against the Minnesota Timberwolves.

Prior to his injury, Watson had averaged career highs in every major offensive category with 14.6 points, 4.9 rebounds and 2.1 assists through 54 games and 40 starts.

That has likely put him on the radar of teams in search of a young wing like the Lakers and Bulls, both of which are routinely connected to wing targets on the trade and free agent markets.

The Nuggets can go over the cap to re-sign Watson thanks to holding full Bird rights on his contract, and they will also be able to match any offer sheet Watson receives in free agency.

Retaining him could be costly for a team already strapped for space below the punitive second tax apron next season, however.

Thanks to the contracts signed by Nikola Jokić, Jamal Murray, Aaron Gordon, Cameron Johnson and Christian Braun, the Nuggets are already projected by Spotrac to have just $2.6 million in second apron space next season without Watson yet on the books.

Watson told the Denver Post's Bennett Durando in October he felt the Nuggets' desire to stay below the second apron was part of the reason he hadn't been extended ahead of the final season of his rookie contract.

Durando then reported in February that Watson's play had made it "more likely that [the Nuggets] ultimately keep him."

He added that the Nuggets are "certainly planning to try" to keep Watson, and that "people I've spoken to around the league view Cam Johnson as the most likely candidate to go" in that case.

Moving Johnson, who is set to cost the Nuggets a $23 million cap hit next season, could make room for Denver to potentially match an offer sheet and commit to Watson as a starter going forward.