Fred VanVleet Reportedly Set to Sign 2-Year, $50M Rockets Contract Ahead of NBA FA

The Houston Rockets are declining Fred VanVleet's club option but will keep the veteran point guard around for another two years.

ESPN's Shams Charania reported Wednesday that VanVleet will sign a two-year, $50 million deal.

Charania added that "both sides believe in a partnership for years to come beyond the two years."

His option would've paid him $44.9 million for the 2025-26 season.

The 31-year-old is coming off another productive campaign. He averaged 14.1 points, 5.6 assists and 1.6 steals in 60 appearances. While his shooting (37.8 percent overall and 34.5 percent on threes) wasn't great, those numbers are generally on par with his career averages.

VanVleet also provided leadership for a young Rockets squad that took another step forward. Houston finished second in the Western Conference at 52-30 and lost in seven games to the Golden State Warriors in the first round.

In a December interview with The Athletic's Kelly Iko, VanVleet said he understood what signing with Houston meant in terms of his role and what he needed to do to help his teammates.

"Just understanding the team, structure and where guys were," he said. "As someone who's done it already in terms of winning a championship, making an All-Star Game and things like that, most of these guys are still in their first contract, trying to check things off their goal list. It's easier for me to set the tone of unselfishness than it would be for them."

Having an experienced vet, especially one who's willing to take a back seat, can be critical toward the development of emerging talents such as Jalen Green, Amen Thompson, Alperen Şengün and Jabari Smith Jr.

The Rockets wanted VanVleet to be a culture-setter when they signed him, and that's exactly what he has been.

This is the point where the rebuild begins to get really difficult, though.

Having established itself a playoff threat, Houston needs to take the next step forward. That means scrutinizing the internal options and focusing more closely on the payroll.

The Rockets could afford to pay VanVleet $40 million in 2023 because so many of their players were still on rookie contracts. VanVleet, Dillon Brooks and Steven Adams who counted for more than $10 million that year.

Since then, the front office has paid out big extensions to Green and Şengün. Power forward Tari Eason is eligible for restricted free agency in 2026, and Thompson can hit the market the following year.

Including Green and Brooks as part of the reported trade package for Kevin Durant means having even less wiggle room. Durant will make $54.7 million this coming season, and that might be the starting point for any extension he signs beyond that.

Getting VanVleet for less money is a win-win for Houston because it retains a key part of the backcourt while freeing up space to potentially re-sign Durant and make other moves.