There is, at some point, a Peyton Watson plot twist yet to come.Maybe the Denver Nuggets’ restricted free-agent wing eventually gets the money and role he’s seeking by way of sign-and-trade, with the Cleveland Cavaliers, Milwaukee Bucks and LA Clippers all remaining in the hunt for the 23-year-old. It’s possible he strikes a deal with the Nuggets, whose present offer — four years, $70 million, with a team option in the fourth season, per a league source — falls well short of where he sees his worth.This could also head down the hard road, with Watson either taking the qualifying offer (one year, $6.5 million) as a route to unrestricted free agency next offseason or holding out altogether (in which case the Nuggets would still hold his rights). With no salary caps-space teams left to provide an offer sheet, those are the four options still in play for one of the NBA’s most interesting late-summer situations.But regardless of what comes next, the bigger picture issue for Nikola Jokić and his Nuggets is the substantial gap between Denver and the league’s most elite teams. By any objective measure, they’re no closer to the reigning champion New York Knicks, San Antonio Spurs or Oklahoma City Thunder than they were before (not to mention the host of other teams at or around their level). And that’s after a challenging offseason in which this ownership, long chastised for being cheap, has surprised the masses by not mandating the salary dumps so many rival teams predicted. What’s more, the Kroenkes even greenlit the matching of Oklahoma City’s offer sheet to Spencer Jones (two years, $11.75 million) that made the Nuggets the league’s only second-apron team (while leaving them with a tax bill of approximately $70 million, according to our John Hollinger; possible bonuses for Cam Johnson and Aaron Gordon make the actual number a moving target).Yet, even with the organizational support for the front office, co-headed by Ben Tenzer and Jon Wallace, the substantial pressure from their luxury-tax situation is almost certain to force hard decisions between now and February’s trade deadline. It’s not just about the money anymore under the current collective bargaining agreement, of course, with roster-building restrictions placed on offenders being pivotal in every team’s calculus. That means even the most beloved of Nuggets not named Jokić could eventually be on the move, though Johnson (who has an expiring contract worth $23 million next season) is widely considered the top candidate.To put it plainly, holding the line has been hard for the Nuggets this offseason. The 31-year-old Jokić had a chance to provide some stability by signing an extension this summer that would have run through the 2030-31 season, but opted to wait as a way of securing max money (an estimated $80 million) when he’s 38 years old.“My idea is to sign next summer and stay with Denver for the rest of my career,” Jokić, who has a player option worth $62.8 million for next season, told reporters after Serbia defeated Bosnia and Herzegovina in early July, according to a translation provided to The Athletic by a team source.It was an understandable business decision, to be sure, but it’s also the kind of choice that invites all suitors – NBA or otherwise – to try and lure Jokić away. Just this week, in fact, the owner of Panathinaikos basketball, Dimitrios Giannakopoulos, revealed his failed attempt to land Jokić this summer and shared his plans to try again a year from now.From Jokić and beyond, there’s no real way of assessing the Nuggets’ future until they get clarity on the Watson front. This is true on the basketball front, as he showed serious signs of being a key defender (and improving offensive talent) last season for this team that was just 21st in defensive rating. It’s also the case on the business front, as every additional dollar spent by the Nuggets these days comes at a serious cost.To that end, all signs point to Watson being patient enough to wait for a resolution that’s to his liking. His agent is Rich Paul, the Klutch Sports founder who is no stranger to uncomfortable negotiations, meaning his client will remain the priority no matter how much that jams up his current employer. And considering the precedent set for another young Nuggets talent in October of 2025, when 25-year-old guard Christian Braun was given a five-year, $125 million extension, there won’t be sympathy coming Denver’s way from Watson’s camp anytime soon.As for Watson’s leaguewide suitors, the Bucks would benefit from a longer delay here because it would open up sign-and-trade options that might be more amenable to their priorities. More specifically, Sept. 6 looms as the first date on which they can aggregate players acquired in the Giannis Antetokounmpo trade with Miami. If they were looking to avoid sending a first-round pick (or two) Denver’s way, as our Eric Nehm reported recently, the prospect of sending rotation players instead would be a possible solution. That route could allow them to avoid using the $25.5 million trade exception that was created in the Antetokounmpo deal (that scenario would require the Nuggets to be out of the second apron).As for the Cavs, who still have James Harden’s contract situation on hold as they navigate the Watson and Jonathan Kuminga pursuits, it remains to be seen how long they’re willing to wait. Or, for that matter, how they can make the money work for Watson and Harden while remaining below the first apron (which they must do to legally sign-and-trade for Watson).The Clippers, meanwhile, have the requisite financial flexibility and draft capital to get something done but are also juggling much larger issues at the moment. Even beyond the league’s never-ending investigation into salary-cap circumvention that has paused the Kawhi Leonard trade to Toronto, they have yet to reach a resolution with their own restricted free agent: Bennedict Mathurin.None of which is to say the Nuggets are doomed. But they are in a bit of a title-contender ditch at the moment, three years removed from the franchise’s only championship and seeking creative ways to dig their way out. Using Watson’s situation as a shovel would be a good start.