Photo: Cleveland Cavaliers

James Harden is set to remain with the Cavaliers after declining his $42.3 million player option for the 2026-27 season, with both sides now working toward a new multiyear contract.

Had Harden exercised the option, only a little more than $13 million of his salary would have been guaranteed.

Opting out had long been viewed as the most likely outcome, allowing Cleveland to restructure his deal while reducing his cap hit for next season.

The financial flexibility could prove valuable as the Cavaliers continue navigating the NBA’s first and second luxury-tax aprons while maintaining a championship-caliber roster.

Cleveland acquired Harden at last season’s trade deadline in a deal that sent Darius Garland and a second-round pick away.

The veteran guard made an immediate impact, averaging 19.2 points, 5.1 rebounds, 5.5 assists, and 1.7 steals during the 2026 NBA Playoffs as the Cavaliers advanced to the Eastern Conference Finals.

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