Examining Rockets' Salary Cap, Decisions for 2026 NBA Free Agency after Lakers Loss
Although the Houston Rockets won 52 games for the second straight year, an immediate postseason exit again doomed the Western Conference team.
This year, it was awfully ugly, too.
Despite taking on a short-handed Los Angeles Lakers squad, the Rockets lost in 6 games. The streak of not winning a playoff series since 2020 will continue into next season, which may look pretty similar from a roster perspective. Nearly every key contributor is under contract or holds a player option.
But after such a disappointing end to the campaign, it's possible Houston's front office might attempt to revamp the rotation anyway.
2026 Salary Cap
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On paper, at least, the Rockets won't necessarily be changing much.
Ten players are under team control, led by veteran star Kevin Durant ($43.9 million) and promising center Alperen Sengun ($35.6 million).
Along with Sengun, Houston bring back its young core of Jabari Smith Jr. ($23.6 million), Amen Thompson ($12.3 million) and Reed Sheppard ($11.1 million). They are the foundation of optimism in the future.
If everyone returns, though—more on that momentarily—the Rockets will be pressing up toward the projected $201 million luxury tax. They already have $185.7 million on the books and would need to address four empty roster slots, even as those are likely minimum-type additions.
Top Contract Decisions
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The starting point of Houston's offseason is determining if Fred VanVleet, who missed the season due to a torn right ACL, will exercise his $25 million player option or instead enter free agency.
Plus, the Rockets must decide how much they're willing to pay restricted free agent Tari Eason and whether to keep JD Davidson on a team option.
The other decisions are more focused on hypotheticals.
Should the team extend a high-dollar extension offer to Amen Thompson, who is tremendously versatile and also not a dangerous shooter? Will the Rockets look to unload Dorian Finney-Smith and his multi-year contract?
Houston could be far busier than its current cap outlook requires, and a trade of Sengun—possible, even if unlikely—would be the catalyst for chaos.
Free Agents to Pursue
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Based on the Rockets' cap numbers today, their flexibility to add unrestricted free agents will be rather limited.
VanVleet is expected to return, and even a lesser version of the veteran guard should provide a nice boost. Houston's turnover rate ranked 24th in the league, and VanVleet can help steady the backcourt.
No matter his decision, the Rockets could use another low-volume ball-handler if Aaron Holiday is not re-signed. A low-cost reserve like Bones Hyland or Jevon Carter might fit that billing.
Eason is a risk to walk, but replacing him with John Collins would be a respectable choice. Harrison Barnes or Bruce Brown are sensible wing targets, as well.
And the Rockets may as well keep Jeff Green as their 15th man!
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