New Cavs Rumors on James Harden's Contract, Kuminga, Peyton Watson and Trades for Strus, Schroeder

The Cleveland Cavaliers are reportedly working on a new contract with James Harden in free agency.

According to HoopsHype's Michael Scotto, Harden and the Cavs are "harmoniously" negotiating a deal that will "appropriately pay" him while also giving the team "financial flexibility" to make other moves. Multi-year contract structures have been discussed.

Cleveland has also called to express interest in a sign-and-trade for Denver Nuggets restricted free agent Peyton Watson after previously being "in the mix" for forward Jonathan Kuminga in free agency, per Scotto.

Cavs sharpshooter Max Strus and veteran guard Dennis Schröder are both trade candidates, per Scotto.

Harden became a free agent after declining his $42.3 million player option for the 2026-27 season on June 29.

Still, ESPN's Ramona Shelburne previously expressed her belief that Harden could be receiving a new deal from Cleveland in the near future.

"I think that could happen relatively soon. The question is gonna be is it a two-year deal, a three-year deal, what the structure looks like is gonna determine what the money looks like," Shelburne reported during a Thursday appearance on NBA Today. "But the Cavs are still poking around with Peyton Watson and I think that's why James has given them a lot of room to negotiate."

After the Cavs missed out on LeBron James once he signed with the Philadelphia 76ers, they could acquire Watson to improve their forward rotation.

Watson averaged a career-high 14.6 points and 4.9 rebounds per game during his 2025-26 campaign with the Nuggets, shooting 49.1 percent from the field and 41.1 percent from behind the arc.

It's worth noting that he missed time due to a hamstring injury, appearing in 54 regular-season contests before he was sidelined throughout the playoffs.

While Strus has been an important part of Cleveland's rotation when healthy, he's suited up in just 62 of a possible 164 games over the past two years combined.

Strus is set to earn $16.7 million next season while Schröder will carry a $14.8 million cap hit. Both players are candidates to be moved, as a potential sign-and-trade agreement for Watson appears to be an option.

If Cleveland isn't willing to give up assets in a swap, Kuminga remains available as an unrestricted free agent. He averaged 12.2 points, 5.6 rebounds and 2.3 assists per game on 46.3/33.3/72.4 shooting splits across 36 combined games with the Golden State Warriors and Atlanta Hawks last season.