What happened: Nikola Jokic said Peyton Watson deserved the contract and added that "it's gonna be okay." The 23-year-old's deal also carries a trade kicker.

Why it matters: Watson's exit removes a young two-way contributor before the 2026-27 season. Nikola Jokic can wait until next summer to pursue a longer maximum extension, adding weight to the roster's direction.

What to watch: Attention turns to how Watson's production will be replaced and whether Jokic commits to another extension next summer.