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While the Lakers will make an 'all out pursuit' for a Giannis Antetokounmpo trade, cap space could be used on a specific free agent target.

Peyton Watson has worked his way up from role player to key contributor for the Denver Nuggets.

He started in 40 games for Denver during the regular season and averaged 14.6 points, 4.9 rebounds, 2.1 assists and 1.1 blocks per performance. In the process he boosted his own value to the point that the Nuggets could be in danger of losing him in restricted free agency over the offseason.

However, Denver might be able to offset the potential loss of Watson in the upcoming 2026 NBA Draft.

Nuggets Select Texas Forward Dailyn Swain in First Round of 2026 NBA Mock Draft

GettyPORTLAND, OREGON – MARCH 21: Dailyn Swain #3 of the Texas Longhorns dunks the ball against the Gonzaga Bulldogs during the first half in the second round of the 2026 NCAA Men’s Basketball Tournament at Moda Center on March 21, 2026 in Portland, Oregon. (Photo by Soobum Im/Getty Images)

In the first round of a new mock draft for ESPN, Jeremy Woo has the Nuggets selecting Texas Forward Dailyn Swain.

“Swain is one of the most physically gifted wings in this class and has built a solid first-round case after putting together his most complete college season. He is a strong slasher and projects as a plus perimeter defender but is still coming into his own on the offensive end. Teams will be curious to further assess his inconsistent shooting (34.8% from 3, but an encouraging 81.3% from the line) in workouts, a key long-term area for growth that gives him room to rise up the board,” Woo wrote.

“Denver continues to try to optimize its supporting cast around Nikola Jokic on the margins and could lose Peyton Watson in free agency. Swain’s positional size and defensive versatility would be an appealing fit here.”

Swain averaged 17.3 points, 7.5 rebounds, 3.6 assists and 1.6 steals per performance as a junior for Texas last season. He was named Second-team All-SEC and SEC Newcomer of the Year as a result of his productive play. His combination of size and athleticism makes him an extremely intriguing prospect for the Nuggets, or any team.

Peyton Watson Will be a Restricted Free Agent Over the Offseason

GettyHOUSTON, TEXAS – NOVEMBER 21: Nikola Jokić #15 and Peyton Watson #8 of the Denver Nuggets speak during a timeout during the fourth quarter of the game against the Houston Rockets at Toyota Center on November 21, 2025 in Houston, Texas. (Photo by Kenneth Richmond/Getty Images)

It’s important to remember that Watson will be a restricted free agent over the offseason, so the Nuggets will have an opportunity to match any outside offers for him. They can’t just lose him outright.

In theory, Denver would love to keep Watson around as he’s developed into a very valuable piece for the team. But they also have a ton of cap space tied up in their starting lineup of Nikola Jokic, Jamal Murray, Aaron Gordon, Cam Johnson and Christian Braun.

Those five guys will combine to make over $180 million next season. As a result, the Nuggets will be limited in how much they can pay Watson. He could conceivably receive an offer from another team that the Nuggets simply won’t be able to match.