Clippers' Updated Salary Cap After James Harden's Rumored $81.5M Contract

James Harden is staying with the Los Angeles Clippers.

According to ESPN's Shams Charania, Harden signed a two-year contract worth $81.5 million with the Clippers after declining a $36.3 million player option for the 2025-26 season.

The second year in the new deal has a player option and is partially guaranteed, per Charania.

The Clippers now have $14.4 million in luxury tax space and $22.4 million in first apron space, according to NBA salary cap analyst Yossi Gozlan.

Los Angeles is also able to use the $14.1 million non-taxpayer mid-level exception in free agency, via ESPN's Bobby Marks.

A return to Los Angeles seemed to be a possibility for Harden throughout the year despite his looming player option, with team president Lawrence Frank previously discussing the situation.

"We have a great level of appreciation for what James did this year," Frank told reporters on May 5. "I'm going in with the intent that if he doesn't pick up his option that we're going to be able to reach an agreement that works well for James and works well for the Clippers."

The Clippers acquired Harden in a blockbuster 2023 trade with the Philadelphia 76ers, sending out a package headlined by two first-round picks and two second-round picks in return.

After the former MVP averaged 16.6 points per game during his first year with Los Angeles, he put together a resurgent 2024-25 campaign.

Harden recorded 22.8 points per game, his highest scoring average since the 2020-21 season. He also recorded 8.7 assists, 5.8 rebounds and 1.5 steals per game to go along with 41.0/35.2/87.4 shooting splits.

The 35-year-old was named an All-Star and selected as a member of the All-NBA Third Team.

Harden's short-term future with Los Angeles is now reportedly secure, and the team still has avenues to upgrade its roster in free agency.