James Harden's Pay Cut, Peyton Watson Recruitment Detailed in New NBA Rumors After Cavs Contract

Veteran guard James Harden was reportedly both flexible and influential during the Cleveland Cavaliers' pursuit of Peyton Watson.

In the wake of the Cavs acquiring Watson from the Denver Nuggets this week, ESPN NBA insider Brian Windhorst provided some insight into Harden's role in the process on Friday's episode of Brian Windhorst & The Hoop Collective (beginning at the 12-minute mark).

"James Harden was willing to opt out of that contract and sit around all summer, and basically pick up the phone whenever the Cavs called and say, 'Yeah, I'll go down a little farther. I'll go down a little farther,'" Windhorst said. "So as the Cavs made various moves, Harden was not only willing to reduce his salary, but he was willing to recruit. He—from what I understand—he recruited Peyton Watson."

The Watson deal was agreed upon Wednesday, as the Cavs sent Max Strus to the Los Angeles Clippers and an unprotected 2031 first-round pick to the Nuggets as part of the three-team trade.

One day later, Harden's agents informed ESPN's Shams Charania that Harden had agreed to a three-year, $97 million contract to return to the Cavaliers.

It was considered a foregone conclusion throughout the offseason that Harden would re-sign with the Cavs, but he waited and allowed the organization to pursue other potential upgrades to the roster.

LeBron James' agent, Rich Paul, confirmed on his Game Over podcast (h/t Conor Smith of the Philadelphia Inquirer) that the Cavs were among the finalists in the LeBron sweepstakes before he decided to sign with the Philadelphia 76ers.

Had James chosen the Cavs, it would have marked his third stint with the organization he led to a championship in 2016.

Despite LeBron going elsewhere, Harden remained patient, and it paid off in the form of Cleveland adding Watson to the team's already impressive core of Harden, Donovan Mitchell, Evan Mobley and Jarrett Mitchell.

Watson set career highs with 14.6 points, 4.9 rebounds, 2.1 assists and 1.5 three-pointers made per game last season, and adding him to a Cavs team that reached the Eastern Conference Finals last season should make Cleveland an even more serious contender in 2026-27.