The Denver Nuggets are one of three teams that remain in limbo with their marquee restricted free agent. Given his youth (he'll be 24 at the start of next season) and the tremendous amount of upside he's flashed (he's my personal favorite of the big three RFAs), it would behoove them to keep him.
However, if this recent signing is any indication, it seems like the Nuggets may be preparing to part ways with Peyton Watson after all.
The Nuggets add Lonnie Walker IV
On Wednesday, it was announced that the Nuggets would be adding Lonnie Walker IV on a one-year, $3.3 million deal, which is the minimum amount the swingman can make given his level of experience in the league (seven years).
Lonnie Walker IV has agreed to a one-year, $3.3 million deal with the Denver Nuggets, agent George S. Langberg of @GSLSportsGroup told ESPN. Walker was with Maccabi Tel Aviv in the EuroLeague after last playing in the NBA in 2024-25 and now enters his 8th season in the league. pic.twitter.com/tvxQc2RRjz
— Shams Charania (@ShamsCharania) August 6, 2026
Walker has spent time with the San Antonio Spurs, Los Angeles Lakers, Brooklyn Nets, and Philadelphia 76ers. However, he could not net an NBA contract last season, and instead spent his time in the Israeli Basketball Premier League.
I've always thought Walker was a rotation-level player, thanks to his defense, solid shooting (career 35.6% 3-point shooter), and plus wingspan (6-foot-10). So, it was curious to me that he was out of the league. Overall, I think this was a wise decision for the Nuggets — a team that was lacking youth (Walker is entering his age-28 season) and two-way role players.
How adding Walker could affect Peyton Watson's future with the Nuggets
What is really interesting about all of this is what it could mean for Watson. Are the Nuggets adding Walker as a depth piece for when they move Watson? Obviously, Watson is a great player, but with the Nuggets up against the second apron, can they really afford to keep him around?
In his article for ESPN announcing the signing, NBA Insider Shams Charania mentioned that Walker could be a potential replacement for Watson, noting that the team is engaged in sign-and-trade talks with the Los Angeles Clippers, Milwaukee Bucks, and Cleveland Cavaliers.
As an aside, if Watson can't stay with the Nuggets (which would really set them back as a title contender, by the way), I'm rooting for him to land with the Cavaliers. Ever since pairing up Donovan Mitchell, Jarrett Allen, Evan Mobley, and (eventually) James Harden, the Cavaliers have lacked a toolsy wing to fill in the gaps that those players can't.
Watson would fit that description in spades, and would turn what has been a pretty disappointing offseason for the Cavaliers into one that could give them their best roster in this era. In fact, I'd argue that Watson is a much better fit for this roster than LeBron James would have been.
I'm not entirely sure how a Watson/Cavaliers trade would work. Maybe Cleveland would even need to part ways with Harden.
Regardless of what happens, it will be interesting to see what ends up happening with Watson, and if this Walker signing is a sign (no pun intended) of things to come.
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