Think it's important to point out that, while it's true the Nuggets can legally pay Watson whatever it takes and run it back, doing so would put them into the second apron. Meaning they'd be forced to fill out the roster with minimum signings and no salary aggregation in trades.
I'll just keep reminding people that they don't need to create "room" to pay Watson. They have Bird Rights and they aren't currently hard-capped. They're just trying to avoid a huge tax bill, which is an enormously lame thing to do when you have a three-time MVP in his prime.