The Cleveland Cavaliers have acquired Peyton Watson in a sign-and-trade with the Denver Nuggets and Los Angeles Clippers. Watson will sign a four-year, $88 million deal with a player option and a trade kicker.

Max Strus will be traded to the Clippers, while the Nuggets will receive a 2031 first round pick via the Cavaliers and a 2032 second rounder via the Kings. The Clippers will acquire the $16.6 million Strus contract using the $17 million John Collins trade exception.

The Cavaliers previously traded Dennis Schroder to the Charlotte Hornets for Tre Mann in order to facilitate this transaction. Mann and the 2027 second rounder from the Clippers will be sent to the Washington Wizards for Cam Whitmore as part of the deal. Washington is also trading Julian Reese to the Nuggets, who will be waived from his Two-Way deal.

Watson slides in as the Cavaliers' starting small forward and can also play small ball power forward in certain lineups. Watson averaged career highs in points (14.6), rebounds (4.9), assists (2.1) and steals (0.9) while shooting 41% from 3 last season.

Watson was a restricted free agency and the Nuggets had significant salary cap issues in retaining him, especially after committing a five-year, $125 million extension to Christian Braun last October.

Watson also received interest from the Milwaukee Bucks and Portland Trail Blazers in restricted free agency.