The Los Angeles Lakers’ offseason strategy may depend heavily on how the Denver Nuggets manage their increasingly difficult salary situation, particularly regarding Peyton Watson’s restricted free agency. As the Nuggets face a tight financial outlook, trade discussions have surfaced, focusing on how Denver could keep Watson while balancing payroll.
Sources cited by Bennett Durando of The Denver Post indicate that Cam Johnson could be the primary trade candidate if the Nuggets need to reduce salary to re-sign Watson without breaching the NBA’s second salary apron. The Lakers have noticed this dynamic and could take action depending on Denver’s decisions.
The Financial Pressure Behind Denver’s Decision
Peyton Watson’s strong performance this season has created a challenging scenario for Denver. The 23-year-old wing is set to become a restricted free agent after his breakout year, and the Nuggets hold matching rights that could force difficult trade-offs elsewhere on the roster.
Among Denver’s options, Johnson’s contract is viewed as the most straightforward way to free up salary cap space. At 29 years old, Johnson is in the final year of a four-year, $108 million deal signed with the Brooklyn Nets in 2023. His contract carries a $23 million expiring salary for the upcoming season, which tends to attract teams seeking financial flexibility over long-term commitments.
Why Cam Johnson Could Fit the Lakers
From the Lakers’ standpoint, Johnson presents a familiar and viable alternative should they fail to secure Watson. Los Angeles has prioritized adding a dependable 3-and-D wing to complement stars like Luka Dončić and Austin Reaves, and Johnson’s skill set aligns well with their needs.
Although Johnson’s scoring average has dropped this year—to 11.7 points per game, his lowest since his sophomore year—he has improved his shooting efficiency, hitting 41.7 percent from beyond the arc, the best mark of his career so far.
The Lakers explored acquiring Johnson in 2024, but Brooklyn’s high asking price stalled negotiations. Instead, they opted for a more affordable acquisition of Dorian Finney-Smith from the Nets, involving multiple second-round picks and D’Angelo Russell. However, recent salary cap pressures on Denver could reopen the possibility of a Johnson trade.
Lakers’ Financial Flexibility Shapes Strategy
Spotrac cap analyst Keith Smith reports that the Lakers will approach the offseason with roughly $48.2 million in cap space, the largest available amongst NBA teams. Alongside three first-round picks available for trade, this flexibility gives Los Angeles numerous avenues to strengthen their roster.
While Watson remains the preferred target due to his youth, athleticism, and defensive capabilities, the Nuggets’ matching rights create uncertainty. This influences the Lakers to prepare both for an offer sheet on Watson and a trade pursuit for Johnson.
Peyton Watson’s Impact Elevates Stakes
Watson’s season was cut short by a left hamstring strain sustained during a double-overtime loss to the New York Knicks on February 4, yet his value remains high. Since January, he averaged 21.4 points, 5.3 rebounds, 2.9 assists, 1.1 steals, and 1.6 blocks per game, providing crucial two-way contributions to a Nuggets team dealing with injuries.
This breakout stretch has complicated Denver’s roster management, intensifying the urgency to make cap-friendly decisions that may lead to Johnson being placed on the trade block.
Longstanding Lakers Interest in Watson
NBA insider Jake Fischer reported earlier that teams with cap space, including the Lakers, were preparing to pursue Watson’s restricted free agency. ESPN’s Brian Windhorst later confirmed that Watson is among Los Angeles’ offseason targets, highlighting a well-established pursuit.
As a result, much of the offseason discussion will focus on Denver’s salary cap strategies and the chain reaction those decisions could trigger around player movement.
Shifting Plans Based on Denver’s Choice
If Denver decides to match Watson’s offer sheet, Cam Johnson may become the chief asset available to the Lakers instead of a consolation option. The Lakers see Johnson as a way to add steady shooting, size, playoff experience, and cap flexibility while maintaining future roster options around Luka Dončić.
As the offseason unfolds, the Lakers are poised to respond quickly whichever direction the Nuggets take, balancing their resources to capitalize on emerging opportunities.
Moves made at the NBA trade deadline vaporized a lot of 2026 potential cap space. Here are the teams I now project to have cap space this offseason:
1. Lakers: $48.2M
2. Nets: $45.7M
3. Bulls: $34.6MBoth the Hawks and Pistons could have $31M, or could stay over the cap.
— Keith Smith (@KeithSmithNBA) February 7, 2026
