James Harden isn’t a free agent this summer, but has found a way to take advantage of the league’s salary cap boom regardless. The 2015 MVP runner-up has agreed to a contract renegotiation with the Rockets that could keep him in Houston for the next four seasons. Harden was originally scheduled to hit free agency following 2017-18. The team announced the news at a press conference on Saturday afternoon.
The Vertical’s Adrian Wojnarowski reports that Harden’s new deal has a player option for the 2019-20 season and is worth the maximum amount allowable. The superstar guard was set to make just below $35 million combined over the next two years before reaching these altered contractual terms. Under salary caps of $94 million and a projected $102 million, respectively, Harden will earn approximately $55 million before the 2018-19 season.
Sources: Over the next four years, Harden will now earn: $26.5M, $28.3M, $30.4M and a player option for $32.7M in 2019-'20.
— Adrian Wojnarowski (@wojespn) July 9, 2016
The Vertical cap guru Bobby Marks explained the reasoning behind Hardens opt-out clause in his updated contract for the 2019-20 season.
Key on the Harden renegotiation is the player option for 2019-20. Harden would become a Tier 3 max (10 YOS) player if he were to opt out.
— Bobby Marks (@BobbyMarks42) July 9, 2016
Players with at least 10 years of experience are allowed to earn a max-level salary worth 35 percent of the cap. For next season and the two to follow, Harden, a seven-year veteran, is due 30 percent of the cap number.
Contract renegotiations are rare in the NBA due to the strict stipulations that allow them to take place. The only existing deals that can be changed are those of at least four years in length, and they can only be adjusted on the third anniversary of the original signing. Harden inked a five-year extension with Houston in October 2012 after being traded from the Oklahoma City Thunder just before the season tipped off.
Additionally, teams can only restructure contracts if they’re below the salary cap and doing so will leave them below that threshold for the coming season. Players can’t take pay cuts, either; raises are the only type of renegotiations permitted under the CBA.
Bottom line: Harden is getting paid, and he’ll remain with the Rockets for at least one additional season as a result. Will other stars follow his lead with updated deals of their own? Stay tuned.
