Peyton Watson and the Nuggets did not reach a contract agreement before Monday’s deadline for 2022 first-round draft picks to sign their rookie extensions, league sources told The Denver Post.
Watson, 23, is now set to become a restricted free agent next offseason. This traditionally favors the incumbent team, as the process of joining a new team would require Watson to sign an offer sheet, the terms of which Denver would have an opportunity to match and retain him.
Alternatively, Watson will have the option to sign a qualifying offer from the Nuggets, play out the 2026-27 season under the terms of that offer, then enter unrestricted free agency in the summer of 2027.