The Nuggets, according to those league sources, value Peyton Watson significantly. They feel they are in a good spot to retain his services and just need to let the restricted-free-agency process play out. The three teams registering interest in Watson will almost certainly have to go the sign-and-trade route, which brings its own set of complications. Denver’s conundrum is finding a potential contract resolution that’s good for Watson while also keeping the team in a good financial space. Because the Nuggets have invested heavily in Jokić, Gordon and Murray, an expensive contract with Watson would likely yield significant luxury tax penalties, something Denver has been loath to do in the past.

This article originally appeared on Hoops Hype: Nuggets confident they'll retain Peyton Watson