Based on recent successful rebuilds in the NBA, such as the Oklahoma City Thunder and Houston Rockets, there are two non-negotiables for turning a franchise around: draft capital and financial flexibility. The New Orleans Pelicans have neither.
This situation means the Pelicans don't just miss out on blue-chip prospects in the draft, but also perfect free-agent additions like Peyton Watson. And with Denver trying to avoid going deep into the tax, even Watson’s breakout may not be enough for them to match a serious offer.
Looking at other struggling teams that are likely shifting toward a rebuild, most will enter the summer of 2026 with far cleaner cap sheets. The Pelicans, by comparison, are projected to have access only to the taxpayer mid-level exception (around $6.1 million). Meanwhile, the Chicago Bulls could have $60-plus million in cap space, the Brooklyn Nets around $55 million, and the Atlanta Hawks roughly $20–28 million.
That kind of cap flexibility isn't just a number—it helps teams accelerate the rebuild by getting the exact player they need. Like back in the summer of 2023, when Houston added Dillon Brooks.
Watson may have been a better addition than any draft pick the Pelicans could've made
This season, Watson broke out when Nikola Jokić went down with an injury at the end of December, and since then, he's never looked back. Since January 2nd, Watson has been averaging 21.4 points, 5.3 rebounds, and 2.9 assists per game while still bringing the defensive impact that helped him break through in the league with 2.7 stocks per game (blocks+steals).
On top of that, he's also shooting 45.7 percent from beyond the arc on over five attempts per game. During this breakout, he's really grown as an isolation scorer and self-creator, which is just another skill that at 23 years old makes him one of this summer's top free agents.
This is the exact type of player the Pelicans need: young, elite in transition, floor spacer, knows how to play off an offensive hub big (coming from Jokic to Derik Queen), and elite defensively. I mean, could you imagine having Watson's weakside rim-protecting ability next to Queen in the front court? It would clean up so many of the young bigs' defensive lapses.
Then you think about having Saddiq Bey, Trey Murphy III, and Watson all in a starting five—the spacing they provide would help spread the floor and open cleaner driving lanes for Jeremiah Fears.
Of course, the Pelicans can’t live that fantasy.
As the reality check is New Orleans will instead be allocating $108-plus million to the trio of Jordan Poole, Dejounte Murray, and Zion Williamson (assuming Z's deal gets guaranteed) next season.
Sometimes, making a signing in restricted free-agency can be more valuable than drafting in the lottery, as you have a much clearer picture of what player you're getting. For Pelicans fans, the 2026 offseason offers neither option, with no draft picks and little to no available money.