Rockets likely to decline Fred VanVleet’s option, work on new deal

Veteran reporter Marc Stein 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.

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 1, since a deal in the neighborhood of, say, $30M 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.

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.