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Denver Nuggets at Orlando Magic, Orlando, Florida, USA Orlando, Florida, USA, December 27, 2025, Denver Nuggets forward Peyton Watson 8 moves forward at the Kia Center. Copyright: xMartyxJean-Louisx

Peyton Watson lands $88M deal after blockbuster three-team NBA trade

The Denver Nuggets balked at extension talks, and Peyton Watson is now on his way to the Cleveland Cavaliers. The No. 30 overall pick in the 2022 NBA draft gets a big move through a multi-team trade deal after his breakout season.

Despite interest from the Los Angeles Clippers, the Milwaukee Bucks, and the Portland Trail Blazers, Cleveland won the bidding on Wednesday. ESPN’s Shams Charania was the first to break the news.

“Cleveland, Denver and the Clippers have agreed on a trade sending Peyton Watson to the Cavaliers, Max Strus to LA, and an unprotected 2031 Cavs first-round pick and a 2032 Kings second-rounder to the Nuggets, sources tell ESPN,” read Charania’s X post.

Denver Nuggets at Orlando Magic, Orlando, Florida, USA Orlando, Florida, USA, December 27, 2025, Denver Nuggets player Peyton Watson 8 shoots a three at the Kia Center. Copyright: xMartyxJean-Louisx

Watson’s breakthrough season has now been rewarded with a lucrative contract amid the blockbuster trade. A career-best 14.6 points per game over 54 appearances last season is what put him on the radar of the big teams.

“Watson will sign a new four-year, $88 million deal to join the Cavaliers, plus a player option and a trade kicker," Charania added in his August 20 X post.

As the youngster lands a four-year, $88 million deal, the Nuggets receive an unprotected 2031 first-round pick from Cleveland and a 2032 second-round selection from the Sacramento Kings.

On top of that, the Cavaliers’ Max Strus is on his way to the Los Angeles Clippers. After three seasons with the Cavs, he’ll try to come back stronger from his injury-plagued season.

According to NBA TV's Chris Haynes, the Nuggets could now go for veteran guard DeMar DeRozan. On the other hand, the Cavaliers might hold on to James Harden by re-signing him.

However, Watson's deal wasn't the only highlight. As the deal widened, Charania provided all the details.

Five-team complexity: How the deal expanded beyond three teams

Shams Charania kept the NBA community updated about Watson’s deal. In fact, what was presumed to be a three-team trade was actually a five-team one. 

“As part of the deal, the Cavaliers are sending Tre Mann, the 2027 second-rounder from the Clippers and cash to the Washington Wizards for Cam Whitmore, sources said,” revealed Charania via another update on X. “The Wizards also are sending Julian Reese to the Nuggets, who will waive Reese off his two-way deal.”

The 18th overall pick in the 2021 NBA draft, Tre Mann, is headed to the Washington Wizards in a swap deal.

Along with point guard Mann, Cleveland has offered the Wizards cash, and a 2027 second-round pick from the Clippers, in exchange for Cam Whitmore. 

Meanwhile, the Wizards are trading Julian Reese to the Nuggets, who are reportedly opting to waive him. 

Last week’s deal, which included the trade of Dennis Schröder to the Charlotte Hornets in exchange for Mann, makes this a five-team sign-and-trade deal.  

What are your thoughts on the blockbuster five-team sign-and-trade deal?

Written by

Avishek Sarkar

Edited by

Arundhoti Palit