Peyton Watson considering $6.5 million qualifying offer with Nuggets

Peyton Watson may be willing to bet on himself.

The Nuggets forward is seriously considering accepting his $6.5 million qualifying offer and becoming an unrestricted free agent next summer, sources told Marc Stein of The Stein Line.

That would be a fairly significant gamble for Watson, but perhaps an understandable one given the gap between what he reportedly wants and what Denver has offered.

According to Stein, the Nuggets’ initial offers were believed to be in the neighborhood of four years and $70 million. Watson entered free agency hoping to surpass the five-year, $125 million extension Denver gave Christian Braun last fall.

Restricted free agency hasn’t produced that type of market. The Bucks, Clippers and Hawks have all been linked to Watson, but landing him would likely require a sign-and-trade. That isn’t particularly simple for Denver, either.

The Nuggets matched Oklahoma City’s two-year, roughly $12 million offer sheet for Spencer Jones on Sunday, pushing themselves above the second tax apron. As long as they remain there, they can’t take players back in a Watson sign-and-trade.

Then there’s the tax bill. ESPN’s Bobby Marks noted that even if Watson simply accepts the $6.5 million qualifying offer, Denver’s projected luxury-tax penalty could climb to roughly $112 million. So both sides have decisions to make.

Denver would like to keep Watson at its price. Watson appears willing to consider playing out the season for considerably less money in exchange for something potentially more valuable next July: Unrestricted free agency.