Rockets decline option on Aaron Holiday, plan to re-sign

The Houston Rockets have declined the $4.9 million team option on veteran guard Aaron Holiday, according to reporting from Michael Scotto of HoopsHype.

Despite the move, Holiday is expected to return to the team on a new one-year deal.

The 27-year-old served as a key reserve during the 2024–25 season, appearing in 78 games and averaging 6.6 points and 1.8 assists per contest. His 3-point shooting—over 40% from deep—provided consistent floor spacing off the bench.

Holiday has become a trusted contributor under head coach Ime Udoka, who reportedly views him as a preferred option in the second unit. His defensive versatility and low-turnover playstyle allowed Houston to maintain stability when rotating out starters.

The decision to decline his team option is viewed as a cap management move, creating additional flexibility while retaining the player on more favorable terms.

The Rockets have already had an aggressive offseason, highlighted by their blockbuster trade for Kevin Durant and extensions for both Steven Adams and head coach Ime Udoka. Fred VanVleet also re-signed, solidifying the backcourt.

Houston finished the 2024–25 regular season with a 52–30 record, earning the No. 2 seed in the Western Conference before falling to the Golden State Warriors in a tightly contested first-round series.