In a deal that could open up more offseason spending resources, the Rockets will sign veteran point guard Fred VanVleet a two-year, $50 million contract, per ESPN’s Shams Charania. In conjunction with this new deal, Houston will turn down VanVleet’s $44.9-million team option for the 2025-26 season.
The new deal includes a player option for VanVleet in the 2026 offseason, which could potentially allow him to become a free agent at that time.
By lowering VanVleet’s annual salary from approximately $45 million to $25 million for next season, the Rockets should now have sufficient space beneath the NBA’s luxury tax, which could allow them to use up to the full non-taxpayer, mid-level exception (NT-MLE) in 2025 free agency.
“That has real spending power this summer, given the lack of cap space around the league,” said Keith Smith, an NBA salary cap expert for Spotrac. “Good offseason so far in Houston!”
That will allow the Rockets to offer a starting salary in the ballpark of $14 million, annually. Or, they could use a chunk of it and perhaps save a bit of room below the tax line for other spots, such as the $4.9-million team option on Aaron Holiday. With Houston sending out two starters (Jalen Green and Dillon Brooks) in the trade bringing in in All-Star forward Kevin Durant, this could allow the Rockets to backfill their rotation depth.
As for VanVleet, the 31-year-old has been a huge part of Houston’s growth over the last two seasons. Since signing with the Rockets in 2023 free agency, Houston improved from 22-60 in the preceding season (and last place in the 15-team Western Conference) to 41-41 in 2023-24 and 52-30 in 2024-25, which culminated in a No. 2 finish in the West standings.
In two seasons with the Rockets, VanVleet has averaged 15.9 points (36.9% on 3-pointers), 6.9 assists, and only 1.6 turnovers in 36.1 minutes per game. Known for his leadership, the 2019 NBA champion elevated his play in the recently completed 2025 playoffs, averaging 18.7 points and 4.4 assists while connecting on 43.5% of his 3-point attempts.
This article originally appeared on Rockets Wire: Rockets gain spending power by restructuring Fred VanVleet to two-year, $50-million deal
Reporting by Ben DuBose, Rockets Wire / Rockets Wire
USA TODAY Network via Reuters Connect
