Peyton Watson Contract Escalation (8% Annual Max S&T Raises)
Year 1 (2026-27)
$20,370,370
Year 2 (2027-28)
$22,000,000
Year 3 (2028-29)
$23,629,630
Year 4 (Player Option)
$25,259,259
CBA Base Year Compensation (BYC) Mechanism: Because Watson signs for >120% of his previous salary while Denver is over the cap, Denver’s outgoing salary credit is capped at 50% of the new Year 1 contract ($11.0M), while Cleveland absorbs the full $20.37M against the First Apron.
Participating Team Ledgers (5 Franchises)
NBA CBA Compliance Verification