This was inevitable. It was only a matter of how the Cleveland Cavaliers would maneuver their restraints to get Peyton Watson. The NBA’s punitive second apron made it almost impossible for the Denver Nuggets to retain him. And now, finally, league insider Shams Charania has confirmed that the Cavaliers have orchestrated one of the most complex four-team transactions of the year.

Cleveland is acquiring 2023 NBA Champion Watson, the highly coveted restricted free agent, in a sign-and-trade deal. Charania says Watson will reportedly sign a hefty four-year, $88 million contract containing a player option and a trade kicker.

As already established, this wasn’t a straightforward transaction. So, to facilitate Watson’s move and create crucial cap-space flexibility, Cleveland has traded veteran Max Strus to the Los Angeles Clippers.

Now, in exchange for Watson, the Nuggets are landing an unprotected 2031 first-round pick alongside a 2032 Sacramento Kings second-round pick (from Cleveland).

The Cavaliers sent guard Tre Mann, a 2027 second-round pick (originally belonging to the Clippers), and cash to the Washington Wizards in exchange for forward Cam Whitmore. And to cap it all off, Washington sent forward Julian Reese, who is the younger brother of WNBA star Angel Reese, to Denver.

Meanwhile, alongside Watson, Cleveland also receives Cam Whitmore from Washington. The Athletic then reported another element to the deal, with the Clippers sending out the draft rights to Ismael Kamagate. But it is currently unclear which franchise is acquiring them.

Technically, this could be chalked up as a five-team deal because Tre Mann was acquired by Cleveland from Charlotte in exchange for Dennis Schroder only last week. Additionally, The Athletic also believes that this trade is being roped in.

The bigger winners after this huge multi-team trade; Are the Nuggets still in a financial mess?

Peyton Watson, 23, emerged as a premier target after a breakout season, in which he averaged 14.6 points while shooting an efficient 41.1% from the three-point line. Cleveland was looking to add his dynamic two-way presence as it reshapes its roster alongside Donovan Mitchell and James Harden (yet to be re-signed).

But to absorb Watson’s $88 million contract (that Denver couldn’t afford to offer) while remaining under the first apron, Cleveland shed Max Strus’s $16.6 million salary to LA, taking back Cam Whitmore’s much lighter $5.4 million salary.

Watson adds crucial wing presence to the Cavaliers and can defend top perimeter players, something that Strus used to do. So, Cleveland has checked its boxes on the caliber of player they needed, and in fact, they’ve managed to get someone better and younger.

Meanwhile, Denver finally opted to accumulate draft capital rather than commit heavy luxury tax dollars to retain Watson. We’re saying that because Charania revealed Denver waived Julian Reese’s two-way deal. He was merely a piece to facilitate the Watson-to-Cavs trade and will now have to look for another team.

The Nuggets were in a really tough spot because they already plunged themselves into heavy luxury tax by matching OKC’s offer sheet for Spencer Jones. Even though Watson had a breakout year, retaining him on a similar contract, which he just signed, would take Denver’s tax bill beyond $200 million. And in a world where Nikola Jokic is due a supermax extension worth $359 million, it’s rather smart on the Nuggets’ part to not mess with the CBA boundaries any further.

Jokic has time and again spoken about his love for the Nuggets and the city. But the Serb has delayed signing his new extension for two seasons now. While that motive appears to be purely financial, so he can guarantee himself a paycheck late into his 30s, Panathinaikos owner Dimitris Giannakopoulos recently admitted to making a “serious proposal” to the Nuggets star this year.

It is really on the Nuggets now to build a contender around Jokic. Simply because any NBA team, or at this point even a non-NBA team, would give anything to sign him. And the Serb has already won his sole championship in 2023, fulfilling the core dream every player steps into the league with.

Reports now indicate Denver is also pursuing veteran scorer DeMar DeRozan to fortify their offense as they prepare for another championship run. But there’s a potential roadblock there, as there has been all summer with the Nuggets.

“If he’s willing to take a minimum contract, the Nuggets would welcome DeRozan,” insider Brett Siegel of ClutchPoints reported. “It appears as if DeRozan is attempting to receive all of or part of a team’s mid-level exception.”

However, chasing DeRozan or any other target has gotten ten times harder because even though Denver is $1.3 million over the second apron with two roster spots open, they’re reportedly “prohibited” from using their new trade exception.

“As a second apron team, they aren’t allowed to A: take back players under contract in a sign and trade or B: use a trade exception created by sign and trading a player,” The Third Apron’s Yossi Gozlan posted. “They could unlock it by getting under the second apron. Using it would then hard cap them to the second apron”

Denver will definitely fall under the punitive second apron if it moves Zeke Nnaji’s $7.4 million salary. Insider Marc Stein, though, earlier reported that the Nuggets had tried doing this, but didn’t find any takers…

So, even though Denver has shaved off hundreds of millions from the payroll after moving its 2023 champion Peyton Watson, that is just the first step to moving toward a sustainable roster. There’s a lot more work to be done, and the team is back to over-relying on their starting five of Jamal Murray, Christian Braun, Cameron Johnson, Aaron Gordon, and Nikola Jokic.

Meanwhile, Max Strus joins a familiar face in Darius Garland at the Clippers. LA utilized a trade exception to absorb Strus’s $16.6 million salary for the upcoming season, bolstering their rotation without sacrificing core assets. Strus, who shot over 40% from deep in the regular season, adds experience and elite floor-spacing to a squad navigating complex salary-cap logistics surrounding Kawhi Leonard.

But Strus also joins a crowded locker room that includes Bradley Beal, Kris Dunn, Derrick Jones Jr., Jordan Miller, and Kobe Sanders, who can play very similar roles. The Clippers have yet to take a call on RFA Bennedict Mathurin.

In Washington, bringing on Tre Mann fulfills an urgent need for point guard depth and secondary ball-handling. The Wizards parted ways with 23-year-old big man Julian Reese to clear the roster spot.  An undrafted product out of Maryland, the undersized big logged impressive production in a semi-extended role last season, averaging 11.8 points and 10.5 rebounds per game.

However, Angel Reese’s brother’s tenure alongside three-time NBA MVP Nikola Jokic has ended before it began.

While the Cavaliers emerge as the bigger winners of this trade, the Nuggets still have a lot of work to do to realistically contend for a championship again.