The Nuggets entered the offseason expecting painful financial decisions. Instead, they may now be positioning themselves for the biggest free-agent swing of the summer. Yes, the LeBron James free-agent saga seems to have drastically altered the Mile-High City’s trajectory.

According to Mark Stein and Jake Fischer’s July 4 NBA trade report, Denver is “not working under the cap crunch many rival teams once projected.” The report also revealed that the Nuggets have begun negotiations with restricted free agent Peyton Watson. All this while, they emerge as a realistic suitor for Bron.

It represents a dramatic shift in direction. 

Following the Nuggets’ 2026 early playoff exit, President Josh Kroenke admitted that every player outside of Nikola Jokic will be part of the trade conversation. With the team projected above the second apron, many expected salary-cutting moves involving players such as Jamal Murray, Aaron Gordon, or Cameron Johnson.

That expectation has now taken a surprising turn.

Rather than tearing down parts of its core, the Nuggets appear intent on keeping their championship foundation together. Meanwhile, they quietly explore ways to land LeBron James. In short, the team doesn’t seem bothered by the tax bracket as the rivals once projected.

The possibility gained further momentum during Rich Paul’s recent appearance on the Game Over podcast with Max Kellerman.

While discussing LeBron’s market, Paul’s whiteboard included Denver alongside other serious contenders. He even listed out the Nuggets’ starting core before explaining what still stood in the Nuggets’ way.

That hurdle is Peyton Watson.

The Nuggets have now entered negotiations with the restricted free agent, whose next contract remains one of the franchise’s biggest priorities. Watson reportedly sought $25 million annually. One that would further push the second apron ceiling.

Notably, Klutch Sports represents both Bron and Watson. As someone involved on both fronts, Paul could have used it as leverage. That’s been the case with Tyrese Maxey and Darius Garland.

How LeBron James’ contract could reshape Nuggets’ title plans

Multiple reports, including Shams Charania’s, reported that James would prioritize championship contention over another max contract. That possibility is what is keeping the Nuggets in the hunt.

Even while operating above the second apron ($229.65 mil), the current CBA still allows teams to sign veteran minimum deals. If James chooses that route, Denver could add him without completely dismantling the roster around Nikola Jokic.

That also explains why the Nuggets have reportedly resisted breaking apart their core. Despite repeated trade speculation surrounding Cameron Johnson and other rotational players, the organization has continued to preserve much of its supporting cast.

From a basketball perspective, the LBJ pairing with Jokic is a must. 

Pairing James with Jokic would unite two of the smartest offensive players of the modern NBA. The Serbian big man’s elite passing and James’ ability to create opportunities with or without the ball would transform the team. 

Above all, this pairing would solve a major issue that has troubled the Nuggets – namely, maintaining production when Jokic rests on the bench. LeBron James could stabilize the second unit. 

However, the Nuggets still have a long way to go.

Stein and Fischer also reported that the Sixers and Timberwolves continue to receive legitimate consideration from James and his camp. The Cavs, Warriors, and Heat also remain firmly involved. 

In short, the Nuggets have to gamble on retaining Peyton Watson.

For now, though, the Nuggets’ offseason no longer revolves around escaping financial pressure. Instead, they look to improve their championship contention.