James Harden Reportedly Declines $42.3M Cavs Contract Option, Latest NBA Rumors on Talks of New Deal

After the Cleveland Cavaliers advanced to the Eastern Conference Finals this past season, star guard James Harden is set to become a free agent, but it sounds like he isn't going anywhere.

Per ESPN's Shams Charania, Harden declined his $42.3 million player option for the 2026-27 season on Monday, making him an unrestricted free agent this offseason. However, Charania added that "the sides are working through a new multiyear deal together."

NBA insiders Marc Stein and Jake Fischer recently reported that there's an expectation that the Cavs and Harden "should soon" reach a verbal agreement on a multiyear deal. It appears that they are still on the path toward keeping the 11-time All-Star in Cleveland for the foreseeable future.

The Cavs acquired Harden from the Los Angeles Clippers in exchange for point guard Darius Garland and a second-round draft pick ahead of this season's trade deadline in a win-now move. He helped Cleveland finish fourth in the Eastern Conference with a 52-30 record, averaging 20.5 points, 4.8 rebounds and 7.7 assists in 26 regular-season games.

During the playoffs, Harden averaged 19.2 points, 5.1 rebounds, 5.5 assists and 1.7 steals as the Cavs went on to get swept by the eventual NBA champion New York Knicks in the conference finals. Harden shot just 29.9 percent from beyond the arc during the postseason, and his defensive shortcomings were exposed against the Knicks.

At this stage in his career, Harden's primary goal is to win an elusive NBA championship. The 2018 NBA MVP fit seamlessly next to star guard Donovan Mitchell, and he elevated the production of veteran center Jarrett Allen as a pick-and-roll finisher.

Harden is still one of the top offensive players in the league, so he would have garnered significant interest on the open market. However, it appears that he feels that staying with the Cavs gives him his best chance to win his first career NBA title.