Lakers’ $108M Backup Plan if Nuggets Keep Peyton Watson

The Los Angeles Lakers’ offseason plans may hinge less on chasing a breakout restricted free agent — and more on how the Denver Nuggets manage an increasingly tight salary picture.

According to Bennett Durando of The Denver Post, league sources believe Cam Johnson is the most likely trade candidate if Denver is forced to make a cost-cutting move to re-sign Peyton Watson without crossing into the NBA’s punitive second apron.

That possibility has not gone unnoticed in Los Angeles.

Cap analyst Yossi Gozlan of the Third Apron recently suggested that the Lakers could emerge as a logical landing spot for Johnson — if draft compensation is attached, making the deal more palatable for a cap-flexible team looking to add shooting and size on the wing.

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Denver’s Financial Squeeze Creates an Opening

Watson’s rapid emergence has created an unexpected dilemma for Denver.

The 23-year-old wing is approaching restricted free agency after a breakout season, and while the Nuggets retain matching rights, doing so could force difficult roster decisions elsewhere. According to Durando, Johnson’s contract stands out as the cleanest lever Denver could pull if it needs to reduce salary to stay below the second apron.

Johnson, 29, is entering the final year of a four-year, $108 million contract he signed with the Brooklyn Nets in 2023. He will carry a $23 million expiring salary next season, a structure that often appeals to teams seeking flexibility rather than long-term commitments.

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Why Johnson Makes Sense for the Lakers

From a Lakers perspective, Johnson represents a familiar — and increasingly realistic — alternative if Watson proves unattainable.

Los Angeles has long prioritized adding a reliable 3-and-D wing to flank Luka Dončić and Austin Reaves, and Johnson’s profile fits that mold.

Though his scoring has dipped in Denver — averaging 11.7 points per game, his lowest since his sophomore season — Johnson is quietly enjoying one of his most efficient shooting years, connecting on 41.7 percent from three-point range, a four-year high.

The Lakers previously explored trading for Johnson in 2024, but Brooklyn’s steep asking price stalled talks. Instead, Los Angeles pivoted to a cheaper deal for Dorian Finney-Smith, acquired from the Nets for three second-round picks and D’Angelo Russell.

Circumstances, however, have shifted.

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Lakers’ Cap Space Allows for Multiple Paths

According to Spotrac cap analyst Keith Smith, the Lakers are projected to enter the offseason with $48.2 million in cap space, the most in the NBA.

Combined with three tradable first-round picks, that flexibility gives Los Angeles the ability to pivot quickly — either through a trade for Johnson or an aggressive offer sheet for Watson.

Watson remains the Lakers’ preferred target given his age, athleticism, and defensive upside, but Denver’s right to match any offer sheet complicates that pursuit.

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Watson’s Breakout Raised the Stakes

Watson has been out since February 4 after suffering a left hamstring strain during a 134–127 double-overtime loss to the New York Knicks, but his value remains at an all-time high.

Since the calendar flipped to January, Watson averaged 21.4 points, 5.3 rebounds, 2.9 assists, 1.1 steals, and 1.6 blocks, providing two-way production that stabilized a Nuggets lineup ravaged by injuries.

That surge is what placed Denver in its current bind — and what may ultimately push Johnson into the trade market.

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Lakers Have Long Tracked Watson

NBA insider Jake Fischer previously reported that teams with cap space, including the Lakers, were preparing interest in Watson as restricted free agency approached. ESPN’s Brian Windhorst later echoed that Watson is among Los Angeles’ offseason targets.

But with that interest now well established, the more immediate storyline centers on Denver’s cap mechanics — and the ripple effects they could create.

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A Calculated Pivot, Not a Consolation Prize

If Denver ultimately keeps Watson, Johnson may become the collateral damage — and for the Lakers, that would represent opportunity rather than compromise.

Watson remains the ideal long-term fit. Johnson, however, offers more consistent shooting, size, playoff experience, and financial flexibility — all while preserving future optionality around Dončić.

As the offseason approaches, Los Angeles appears prepared for either outcome — waiting on Denver’s decision, while quietly positioning itself to capitalize if the Nuggets’ cap math forces their hand.

Alder Almo is a sports journalist covering the NBA for Heavy.com. He has more than 20 years of experience in local and international media, including broadcast, print and digital. He previously covered the Knicks for Empire Sports Media and the NBA for Off the Glass. Alder is from the Philippines and is now based in Jersey City, New Jersey. More about Alder Almo