Denver Nuggets Match Spencer Jones Offer Sheet as Peyton Watson Becomes Next Restricted Free Agent Priority

The Denver Nuggets have matched a restricted free agent offer sheet from the Oklahoma City Thunder for Spencer Jones, keeping the 6-foot-7 forward on the roster, according to multiple reports. The two-year, $12 million fully guaranteed deal moves Denver into the second salary cap apron, and the team must now address the retention of Peyton Watson as its next priority in restricted free agency.

The Thunder made their pitch for Jones on Saturday, and Denver had until the end of Sunday to decide whether to match the contract or let him leave for Oklahoma City. Multiple outlets, including ESPN's Shams Charania and Michael Scotto, confirmed the Nuggets' decision to retain Jones. The move represents Denver's commitment to keeping the wing despite significant tax implications heading into the new season.

Jones proved valuable during his time with the Nuggets, particularly in playoff competition. During the regular season, he averaged 5.5 points on 50.4% shooting across 37 starts. His production increased in the postseason, where he averaged 6.5 points over 24 minutes and shot an exceptional 69.2% from three-point range during a six-game series against the Minnesota Timberwolves—the highest three-point percentage among all eligible playoff performers.

By matching Jones' offer sheet, Denver now faces a $32 million jump in luxury tax obligations, with costs rising from $36 million to $68 million. The Nuggets entered the second apron, which limits their ability to add talent through trades and free agency, though the team retains the option to shed salary through in-season transactions if needed. This financial commitment reflects Denver's valuation of Jones' shooting ability and defensive potential alongside the team's core.

The focus for the Nuggets now shifts to Peyton Watson, who remains another key restricted free agent on Denver's roster. The franchise must balance competing in the Western Conference against the mounting salary cap constraints while determining what contract offer to make Watson. Earlier this offseason, the Nuggets lost Tim Hardaway Jr. to the Miami Heat but added depth by re-signing guards Tyus Jones and bringing in forward Marvin Bagley III on a one-year deal.

For the Thunder, the Jones offer sheet marked their first notable free agency move, though the team has otherwise focused on re-signing existing talent in Isaiah Hartenstein and Kenrich Williams and executing trades that sent Aaron Wiggins and Lu Dort to the Atlanta Hawks and Isaiah Joe to the Detroit Pistons in exchange for draft capital.