As part of the trade, the Clippers receive Max Strus from the Cavaliers, and the Nuggets receive an unprotected 2031 first-round pick (CLE) and a 2032 second-round pick (SAC).
Cleveland is signing Watson to a four-year, $88 million deal.
*More details update:
Wizards acquire: Tre Mann (CLE), 2027 second-round pick (LAC), cash
Cavaliers acquire: Cam Whitmore (WAS)
Wizards send Julian Reese to the Nuggets, who waive him off his two-way deal.
Watson, 23, was selected 30th overall by the Nuggets in the 2022 NBA Draft and was part of their championship squad as a rookie. The versatile forward, known for his athletic ability, especially on defense, averaged a career high in points (14.6), rebounds (4.9), and steals (0.9) per game this past season after starting 40 games (54 in total).
His 41.1% three-point percentage and 49.9% field goal percentage were also career-best (min. 50 games).
As for Strus, 30, averaged 11.2 points, 5.4 rebounds, and 1.2 assists in just 12 games last season for the Cavs. The veteran missed the majority of the season after undergoing surgery on a fractured toe.
He hasn't played in more than 50 games in a season since his first year with the Cavs in 2023-2024 (70 games).
The trade happened after rumors started to swirl that the Nuggets were frontrunners to land six-time All-Star Demar Derozan.