James Harden, Cavs Agree to New Contract After Peyton Watson Trade, Full Details Revealed

Veteran guard James Harden is sticking with the Cleveland Cavaliers for the next three years.

Harden and the Cavs agreed to a new three-year, $97 million contract on Thursday, agents Mike Silverman, Troy Payne and Brandon Grier of Equity Sports told ESPN's Shams Charania. The deal includes a player option and a trade kicker.

Harden had previously declined his $42.3 million player option for the 2026-27 season before signing the new deal.

This news comes after Cleveland acquired Peyton Watson from in a three-team deal:

Harden also previously said that a "Big 3" of him, Donovan Mitchell and free-agent forward LeBron James was "the goal." However, James ultimately chose to sign with the Philadelphia 76ers.

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

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 Eastern Conference Finals. Harden shot just 29.9 percent from three-point range during the postseason, and his defensive shortcomings were exposed time and time again.

Still, Harden is one of the league's best offensive players, and his presence ensures that Cleveland will remain one of the top contenders in the Eastern Conference. He and Mitchell create a talented backcourt duo, and he's shown that he can help elevate the production from big men Jarrett Allen and Evan Mobley.

With Harden sticking around for the foreseeable future, the Cavs can focus on adding other pieces to improve the roster as they gear up to chase an NBA title next season.