How Fred VanVleet's Contract Impacts Rockets' Free Agency, Salary Cap amid Injury

The Houston Rockets' ability to find a replacement for injured guard Fred VanVleet is currently limited by the team's hard cap at the first luxury tax apron.

ESPN's Shams Charania reported Monday that VanVleet could miss the entire 2025-26 NBA season after suffering a torn ACL during an offseason workout.

The news came just over two months after VanVleet agreed to a two-year, $50 million extension in place of the $44.9 million team option he previously had in place for 2025-26.

NBA teams can apply for a disabled player exception worth one half of an injured player's salary if they believe that player will miss the entire season, as previously noted by Spotrac's Keith Smith.

Using a DPE for VanVleet could technically give the Rockets a $12.5 million exception the team could use to sign a free agent or acquire a player on an expiring contract, per Smith.

But the team would still have to stay below the first apron, under which it is hard-capped after trading for Kevin Durant and signing Dorian Finney-Smith and Clint Capela this offseason, per The Athletic's John Hollinger.

The Rockets are currently just $1.25 million below the first apron heading into the season, per ESPN's Bobby Marks.

The Rockets are also just under $7 million above the tax threshold. Hollinger noted that the team could look to move out at least that amount of salary this season in order to delay the penalties associated with repeatedly exceeding the tax.

All of that will depend on whether the Rockets are able to field a competitive team without VanVleet this season. Houston's first test of the 2025-26 campaign will come against the defending NBA champions when the Rockets tip off against the Oklahoma City Thunder on Oct. 21.