Rockets Likely To Decline VanVleet’s Option, Work On New Multiyear Deal

The Rockets will likely decline their team option on Fred VanVleet for the 2025/26 season in the coming days, but still intend to work toward a new multiyear contract with their starting point guard, according to Kelly Iko of The Athletic (Twitter link).

Veteran reporter Marc Stein (Twitter links) also hears that there’s a “strong expectation” the Rockets and VanVleet will agree to terms on a new deal soon, though he cautions that one source said Houston is still weighing its options and hasn’t ruled out simply exercising that option.

Whichever direction the Rockets go, VanVleet is considered a good bet to remain with the team, Stein adds (Twitter link).

[RELATED: VanVleet, Rockets Have Mutual Interest In Continuing Relationship]

Declining VanVleet’s option in order to sign him to a longer-term deal makes sense for the Rockets, since picking it up would lock in his $44,886,930 salary for 2025/26. That’s a big number for a Houston team that has agreed to acquire Kevin Durant and would likely have to operate in tax-apron territory if it brings back VanVleet on a maximum-salary cap hit.

Turning down the option and lowering the 31-year-old’s cap hit for ’25/26 would position the Rockets to remain below the aprons and potentially even to avoid the luxury tax, depending on how much of a pay cut VanVleet is willing to take. Tacking on multiple years could entice VanVleet to take a sizable haircut in year one, since a deal in the neighborhood of, say, $30MM annually over three seasons would still assure of him significantly more total guaranteed money than his option would pay him.

There had been speculation that Houston might exercise its option on VanVleet in order to include him as a salary-matching piece in a trade for Durant. However, using one of their other big contracts (like Jalen Green‘s) as a centerpiece for Durant always made more sense for the Rockets, who would have created a major hole at point guard by sending out VanVleet in the move.

A career 37.5% three-point shooter entering 2024/25, VanVleet had a down year from beyond the arc (34.5%), but led the Rockets with 5.6 assists per game, ranked third on the team with 14.1 points per contest, and served as a veteran leader and organizer for a young squad that won 52 games and claimed the No. 2 seed in a tough Western Conference.

The Rockets’ decision on VanVleet’s team option was originally due five days after the team’s season ended, but the two sides agreed last month to push it back to June 29.

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