The Cavaliers, Nuggets and Clippers have agreed on a trade that will send Peyton Watson to Cleveland and Max Strus to Los Angeles, sources told ESPN.
As part of the multiteam deal, Denver will receive an unprotected 2031 Cavs first-round pick and a 2032 Sacramento Kings second-rounder, according to sources.
Watson will sign a new four-year, $88 million deal with a player option and trade kicker to join the Cavaliers, Klutch Sports CEO Rich Paul and agents Lucas Newton and Calvin Andrews told ESPN.
The Cavaliers, coming off an Eastern Conference finals appearance where they were swept by the New York Knicks, have retooled their roster, bringing in the 23-year-old wing for athleticism and scoring after a career year in Denver. In the past week, the Cavs have traded Dennis Schroder, who was sent to the Charlotte Hornets for Tre Mann, and now Strus. The Schroder deal, which happened last Friday, makes the overall swap a five-team deal.
The Clippers are sending a 2027 second-rounder acquired from the Philadelphia 76ers in the Johni Broome trade to Cleveland to acquire an established player in Strus via a trade exception.
As part of the deal, the Cavaliers are sending Mann, the 2027 second-rounder from the Clippers and cash to the Washington Wizards for Cam Whitmore, sources said.
The Wizards also are sending Julian Reese to the Nuggets, who will waive Reese off his two-way deal.
Mann fills a positional need as the Wizards have searched for an additional guard in recent weeks, and Mann has history with general manager Will Dawkins from their time with the Oklahoma City Thunder. The Cavaliers, meanwhile, gain a smaller salary in Whitmore to create optionality under the first apron.
Denver and Cleveland officials finalized the deal Wednesday amid a difficult restricted free agency landscape, with Watson's reps navigating interest and offers from the Milwaukee Bucks, Portland Trail Blazers and Clippers before narrowing on the guaranteed $88 million deal with the Cavaliers.
Watson, who started 40 games last season, averaged career highs in points (14.6), rebounds (4.9), assists (2.1) and steals (0.9) while shooting 41% from 3. He also had four 30-point games, after having none in his first three NBA seasons.
Since entering the league in 2022-23, Watson ranks second in field goal percentage allowed as the contesting defender among players to contest at least 2,000 shots.
ESPN Research contributed to this report.