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Rockets Get $20 Million in Wiggle Room From New VanVleet Deal

On Sunday, Houston traded away Jalen Green and Dillon Brooks for Kevin Durant, a deal that will be finalized in July. 

Apr 26, 2025; San Francisco, California, USA; Houston Rockets guard Fred VanVleet (5) before game three of first round for the 2024 NBA Playoffs against the Golden State Warriors at Chase Center.
Darren Yamashita-Imagn Images

The Rockets are bringing back Fred VanVleet—and they may have some extra space for another player or two.

VanVleet agreed to a two-year, $50 million contract with the Rockets on Wednesday. The deal, which comes with a player option for the 2026–27 season, saves Houston about $20 million this year as the 31-year-old entered the offseason with a team option for the 2025–26 season worth nearly $45 million.

The move means Houston—which is a few days removed from acquiring Kevin Durant for a package of Jalen Green, Dillon Brooks, and six total draft picks—falls below the luxury-tax threshold and first apron. They are also expected to waive Jock Landale to create an additional $8 million in space, per Forbes contributor Evan Sidery.

Crossroads

After the addition of Durant, the Rockets will be title competitors next season, regardless of whether they make any more changes. However, they have the option to either cut down on expenses, add to their depth, or make a second swing for the fences.

Houston will have access to the non-taxpayer mid-level exception worth $14.1 million, which it can use to sign additional free agents and stay below the second apron. With 11 players under contract, including Aaron Holiday, who has a team option, Houston can fill out the remainder of its roster with players on veteran minimum deals. That would put them well below the luxury-tax threshold with enough space to use a portion of the mid-level exception.

The Rockets could get into the tax by using the full exception and potentially get a more established player in free agency or several pieces.

They could also package some of the assets they didn’t send to Phoenix for Durant in another trade (Jabari Smith Jr., Tari Eason, Reed Sheppard, Cam Whitmore, and the 2027 Suns first-round pick) for another piece, while also absorbing additional salary. 

With a treasure trove of assets, financial flexibility, and a team ready to compete now, Houston looks like the league’s closest facsimile of Oklahoma City. But just like the Thunder, the bill is due soon, with extensions looming for the likes of Amen Thompson and Durant.

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