New NBA Rumors on Cavs' Peyton Watson Interest, Dennis Schroder, Max Strus Trade Talks

With the Denver Nuggets currently the only team set to be over the second apron going into the 2026-27 season, Peyton Watson's future remains a significant issue for the team as he waits out restricted free agency.

According to NBA insider Marc Stein, the Cleveland Cavaliers are viewed as a "team to watch" for Watson and has explored potential trade possibilities involving Dennis Schröder and Max Strus to clear cap space to "make a representative four-year offer" that could be presented to Watson's camp.

The combined 2026-27 salaries for Schröder and Strus add up to $31.5 million. Cleveland is technically $35.5 million under the second apron right now, but that doesn't account for James Harden's salary whenever his expected deal gets done.

Strus is playing on an expiring contract in 2026-27. Schröder has a $15.5 million salary in 2027-28, but only $4.4 million of that is guaranteed until June 29, 2027.

Stein did note it is "easier than done" at this point in the offseason to find a team that could potentially absorb both contracts.

Other potential suitors for Watson include the Los Angeles Clippers and Milwaukee Bucks in a sign-and-trade deal.

According to Stein, Watson is believed to be seeking a contract similar in average annual salary to the five-year, $125 million deal Christian Braun got from the Nuggets last October.

Per The Athletic's Sam Amick, the Nuggets' current offer to Watson is $70 million over four years with a team option for the final season.

Given the lack of financial flexibility throughout the NBA right now with most free-agent business taken care of, the Nuggets are in the driver seat to have Watson under contract next season.

If the Nuggets and Watson can't work out a long-term deal and there is no sign-and-trade scenario that Denver wants to take, Watson's options become playing on the one-year qualifying offer then an unrestricted free agent next summer or holding out into the season.

Watson is coming off the best season of his career in 2025-26. The 23-year-old averaged 14.6 points on 49.1 percent shooting (41.1 percent from three), 4.9 rebounds and 2.1 assists per game in 54 appearances.

The Cavs' interest in Watson comes after they lost Dean Wade, who was arguably their best wing defender, in free agency. They are also trying to close the gap on the top teams in the Eastern Conference, particularly the New York Knicks after being swept by them in the conference finals last season.