Fred VanVleet signs new $50 million contract with Rockets

The Houston Rockets found the perfect solution to keep Fred VanVleet while optimizing their salary cap. According to ESPN, the Texas franchise will decline the Canadian point guard’s $44.9 million team option for the 2025-2026 season, but immediately offer him a new two-year, $50 million contract with a player option for 2026-2027.

A win-win deal for Houston and VanVleet

This renegotiation represents a profitable strategy for both sides. For VanVleet, 31, it guarantees an additional $5 million compared to his initial option, even though his annual salary is nearly cut in half. The veteran, 2019 NBA champion with Toronto and former All-Star, keeps his place in an ambitious team that just acquired Kevin Durant.

For the Rockets, this move allows them to get under the « first apron » and avoid the luxury tax. Houston gains a « non-taxpayer mid-level exception » of $14.1 million to recruit free agents and can now organize « sign-and-trade » deals. This flexibility is crucial for a franchise in rebuilding mode.

Houston Rockets guard Fred VanVleet intends to sign a two-year, $50 million contract to stay with the franchise, with a player option in 2026-27, sources tell ESPN. Rockets are declining VanVleet’s $44.9 million team option and land the new deal with Klutch Sports CEO Rich Paul. pic.twitter.com/rwtEUptBQT

— Shams Charania (@ShamsCharania) June 25, 2025

An essential leader despite declining statistics

VanVleet finished the regular season averaging 14.1 points, 5.6 assists, and 1.6 steals in 60 games, his lowest offensive totals since 2018-2019. His shooting percentages (37.8% from the field and 34.5% from 3-point range) remain consistent with his career standards, but it’s primarily his leadership that makes the difference.

The Canadian point guard has been essential in the spectacular improvement of the Rockets, who went from 22 wins to 52 in two seasons, securing the 2nd place in the Western Conference. In playoffs, he elevated his game averaging 18.7 points, peaking at 24.3 points on 56% shooting during the last four games of the series lost to the Warriors.

According to ESPN sources, « both parties believe in a partnership for years to come beyond these two years. » This extension allows the Rockets to retain a key element of their culture while preparing the club’s financial future, particularly in view of a potential Kevin Durant extension.