Fred VanVleet Opts Into $25M Rockets Contract, Latest on Houston's Salary Cap for NBA Free Agency

After missing the entire 2025-26 season while recovering from a torn ACL, veteran point guard Fred VanVleet is ready to run it back with the Houston Rockets.

Per ESPN's Shams Charania, VanVleet exercised his $25 million player option on Monday to remain with the Rockets for the 2026-27 campaign.

According to Spotrac, Houston is already over the salary cap maximum by $61.3 million, so the team will have some work to do if it wants to avoid entering the second apron.

VanVleet's lost year came after he injured his knee during an offseason workout. His torn ACL came just a few months after he signed a two-year, $50 million contract extension that included the $25 million player option.

In VanVleet's absence, the Rockets managed to finish fifth in the Western Conference with a 52-30 record, with star forward Kevin Durant leading the way in his first year with the franchise. Houston rotated between swingman Amen Thompson and second-year guard Reed Sheppard as its primary ball-handlers.

Still, it was clear at times throughout the season that the Rockets were missing VanVleet's presence as a floor general. Houston's issues came to a head in the playoffs when the team fell behind 3-0 against the Los Angeles Lakers in the first round before eventually losing the series in six games. Durant played just one game in the series after suffering knee and ankle injuries.

A healthy VanVleet should help the Rockets stay in the mix as title contenders next season, so Houston fans will be excited to see him back on the floor in 2026-27.