James Harden has agreed to re-sign with the Cleveland Cavaliers for three years and $97 million, including a player option for the third season, according to league sources who spoke on condition of anonymity because the deal is not finalized.
Harden’s new deal will also have a 15 percent trade kicker.
The 36-year-old, 11-time NBA All-Star guard declined his $42.3 million option for next season in late June and waited to sign his new deal to give the Cavaliers more salary-cap flexibility to make a move such as signing LeBron James, according to a league source who spoke on condition of anonymity to describe ongoing deliberations. While James ultimately signed with the Philadelphia 76ers, the Cavaliers used the extra flexibility to acquire former Denver Nuggets forward Peyton Watson in a sign-and-trade.
Last season, Harden averaged 20.5 points and 7.7 assists in 26 games for the Cavs after arriving in a February trade for Darius Garland. Cleveland reached the Eastern Conference finals for the first time since 2018 and since 1993 without James on the roster, and the Cavs strongly believe Harden’s veteran presence, size and physical toughness were major reasons why.
Harden averaged 19.2 points and 5.5 assists in the playoffs but shot under 30 percent from 3-point range and averaged 3.2 turnovers.
“I think we found something,” Harden said after the Cavaliers were swept out of the conference finals by the eventual-champion New York Knicks. His point was that the Cavs only had a few months to jell with him on the roster, and the team should be even better with more time.
Cleveland lost key pieces from its rotation to free agency, as defensive stopper and big man Dean Wade signed with the 76ers before James did. Keon Ellis and Larry Nance Jr. also exited Cleveland as free agents, while Dennis Schröder and Max Strus were traded to create more cap flexibility to sign Watson. The Cavs also brought former lottery pick Mario Hezonja, 31, who is returning to the NBA after six seasons in Europe.
With the reported contract numbers for Harden and Watson ($88 million over four years), the Cavs are $1.5 million over the first apron of $209 million. One way to dip under that level is to waive or stretch Cam Whitmore, who was acquired in the multiteam deal that brought Watson to Cleveland. Whitmore is set to make $5.46 million in 2026-27.
ESPN was first to report news of Harden’s signing.