Nuggets’ Second Apron Woes Deepen as Ex-Lakers Star Returns From Israel on New NBA Deal

The Denver Nuggets are currently in a sticky situation. As of this writing, the Nuggets are the only team in the NBA that is operating in the second apron. This means the team can only operate on a super-tight budget. Honestly, it's more ideal if they don't participate in any more transactions.

However, it appears the Nuggets can't stray from pursuing more deals after bringing in former Los Angeles Lakers forward Lonnie Walker IV. According to NBA insider Shams Charania, Denver offered Walker a one-year contract worth $3.3 million. Despite already being in the second apron, it's surprising how they can even still make offers.

"Lonnie Walker IV has agreed to a one-year, $3.3 million deal with the Denver Nuggets," Charania reported on X.

The upcoming season will be the first time Walker has stepped foot on an NBA court since the 2024-25 season. Walker previously played in the EuroLeague, representing an Israeli team, Maccabi Tel Aviv B.C.

After signing the former EuroLeague star, the Nuggets now have an estimated tax penalty of over $80 million. They had better hope that signing Walker was worth it.

Looking at his numbers while playing for Maccabi Tel Aviv, Walker averaged 15.2 points, 2.5 rebounds, and 2.3 assists. While his numbers aren't necessarily impressive, it's arguable that they're worth the amount Denver offered him.

Nuggets' Peyton Watson Up For Grabs

While the Denver Nuggets are currently struggling with their second-apron woes, it appears they have another problem to deal with. One player currently on Denver's pending list is Peyton Watson. After he finished his four-year rookie contract, Watson is now a restricted free agent.

Being a restricted free agent, Denver has the right to match whatever offer has been made to Watson by other teams. However, doing so would put the Nuggets in the deeper waters of the second apron.

Having that in mind, NBA insider Jake Weinbach reported that Denver is open to shipping Watson to another team via a sign-and-trade deal. The teams that are reportedly interested are the Milwaukee Bucks, Cleveland Cavaliers, and LA Clippers.

"The Bucks, Cavs, and Clippers remain in active trade talks with the Nuggets on a potential Peyton Watson sign-and-trade," Weinbach reported on X.

Of course, the Nuggets still have the option to retain him. Watson has a qualifying offer of a one-year deal worth $6.5 million. However, keeping him on the roster will only make the team's second apron situation worse.

According to other sources, Watson's asking price ranges from $25 million to $28 million annually. This is due to his breakout performance last season when he averaged 14.6 points, 4.9 rebounds, 2.1 assists, and 1.1 blocks per game.

However, the teams that are reportedly interested in him have only offered around $16 million to $18 million annually. With a huge price difference, we're not entirely sure if Watson would end up on another team this coming season.