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Nuggets trade Peyton Watson to Cavaliers in three-team deal

Yahoo Sports • 1 min read • Latest: Aug 20, 2026, 2:13 AM

Last updated Aug 20, 2026

Nuggets trade Peyton Watson to Cavaliers in three-team deal

Summary

The Denver Nuggets traded Peyton Watson to the Cleveland Cavaliers on August 19, as part of a three-team sign-and-trade with the Los Angeles Clippers. In return, the Nuggets received a 2031 first-round pick from the Cavaliers and a 2032 second-rounder from the Kings. The decision stems from financial constraints; re-signing Watson for around $22 million would have raised their luxury tax bill significantly, potentially exceeding $220 million. The Nuggets are now adjusting to Watson's departure while preparing for Nikola Jokic's upcoming supermax extension, which will further impact their salary cap situation.

Source Links

Yahoo Sports

Status Watch

•Nuggets received a 2031 first-round pick and a 2032 second-round pick.
•Trade involved the Cleveland Cavaliers and Los Angeles Clippers.
•Re-signing Watson would have dramatically increased luxury tax costs.
•Nikola Jokic's upcoming extension adds to Denver's cap complexities.
•Watson is regarded as a player with significant potential.

Latest Updates

3:14 PMYahoo Sports — What was the Nuggets' offer to Peyton Watson before dealing him?
2:13 AMYahoo Sports — Nuggets news: The luxury tax reason Denver didn't just pay Peyton Watson $22 million

What they're saying

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The Denver Nuggets bid farewell to Peyton Watson on Wednesday night, sending him to the Cleveland Cavaliers in a three-team, sign-and-trade agreement involving the Los Angeles Clippers. For their troubles, the Nuggets received the Cavs’ 2031 first-round pick along with a 2032 second-rounder from the Sacramento Kings. This seems like a light return […] The post Nuggets news: The luxury tax reason Denver didn't just pay Peyton Watson $22 million appeared first on ClutchPoints.
— Yahoo Sports