Rockets Reportedly Likely to Decline Fred VanVleet's $45M Option, Discuss New Contract

The Houston Rockets are reportedly likely to decline Fred VanVleet's $44.9 million team option for the 2025-26 season. Instead, they plan to discuss a new multi-year contract extension with him in the near future. However, conflicting reports indicate the Rockets are still weighing their options and have not ruled out exercising the team option, with a deadline of Sunday to decide; bypassing the option would make VanVleet an unrestricted free agent.

The expectation is that an extension will be agreed upon, though the actual terms remain unknown. Any new deal is likely to feature a significantly lower average annual value (AAV) than the $44.9 million option. This approach makes sense for both parties given the limited cap space across the NBA and the Rockets' shift into win-now mode following their trade for Kevin Durant.

VanVleet, 31, has been a solid contributor for Houston over two seasons, averaging 15.9 points, 6.9 assists, and 1.5 steals per game. With Durant and Alperen Şengün leading the offense, VanVleet (or Amen Thompson, depending on Thompson's shooting development) is expected to be the third option. The Rockets, who finished 52-30 and earned the No. 2 seed in the West last season, were eliminated in the first round partly due to lacking a reliable number one offensive option – a problem Durant is expected to solve.

Houston boasts impressive depth behind Durant, featuring young talents like Şengün, Thompson, Jabari Smith Jr., Tari Eason, Cam Whitmore, and Reed Sheppard, alongside veterans like VanVleet, Steven Adams, and Aaron Holiday. A potential starting lineup of VanVleet, Thompson, Durant, Şengün, and Smith appears strong on paper. While it's uncertain if this is enough to surpass teams like the Oklahoma City Thunder, retaining VanVleet alongside acquiring Durant would significantly bridge the competitive gap.