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CLEVELAND, OHIO - FEBRUARY 11: James Harden #1 of the Cleveland Cavaliers is introduced prior to a game against the Washington Wizards at Rocket Arena on February 11, 2026 in Cleveland, Ohio. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Nick Cammett/Getty Images) | Getty Images
The Cleveland Cavaliers signed one of the members of their starting backcourt, Donovan Mitchell, to a new four-year extension earlier today. James Harden is expected to get a new deal shortly after he declined his player option for this upcoming season. As of now, he and the Cavs are just waiting to see how some of the other dominoes fall this summer before inking a new contract.
Joe Vardon of The Athletic reported on Tuesday that the framework and dollar amount for a new contract are already worked out between Harden and the Cavs. Depending on whether the Cavs can convince LeBron James to sign with them (or maybe another free agent), Harden is reportedly willing to spread that money over three years instead of two.
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Harden’s willingness to do this could greatly help the Cavs. A longer contract would mean a lower annual amount, which would help Cleveland if they decide they want access to the taxpayer mid-level exception or the non-taxpayer mid-level exception. It’s worth noting that Mitchell’s new deal doesn’t go into effect until the 2027-28 season, so it has no impact on the cap for the upcoming season.
As it stands, the Cavs are $25.3 million under the first apron and $37.9 million under the second, not factoring in a new contract for Harden. Teams under the first apron have access to the non-taxpayer mid-level exception (up to $15 million). But if the Cavs used that or a portion of that, they would be capped at the first apron.
Presumably, Harden wouldn’t be taking a big enough discount to give the Cavs enough room under the first apron to have access to a meaningful portion of that $15 million. However, his signing for a lower annual value, combined with trading or stretching a player like Dennis Schroder, could help them do so. There’s also the taxpayer midlevel exception of $6 million the Cavs could access if they’re under the second apron but above the first.
Whether or not Harden signs for a three-year deal likely depends on LeBron’s decision. As of now, the Cavaliers are in a holding pattern waiting for James.
Last season, Harden averaged 23.6 points and eight assists in 70 combined regular season games for both the Los Angeles Clippers and the Cavs.
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