James Harden, Clippers agree to $81.5 million extension

James Harden, Clippers agree to $81.5 million extension

Retaining James Harden was the Los Angeles Clippers’ No. 1 priority this summer.

Well, mission accomplished. Moments before the deadline, the 35-year-old guard opted out of his $36.3 million player option and signed a two-year, $81.5 million extension, ESPN NBA insider Shams Charania first reported Sunday.

His new deal comes with a player option ahead of 2026-27.

BREAKING: 11-time NBA All-Star James Harden is declining his player option and intends to sign a new two-year, $81.5 million contract to return to the Los Angeles Clippers, sources tell ESPN. pic.twitter.com/qQMwkkMjMs

— Shams Charania (@ShamsCharania) June 29, 2025

The expectation heading into the day was that both sides would renegotiate a new deal, but at what cost was the biggest question. Harden had until 5 p.m. EST on Sunday to either exercise or opt out of his player option.

Now, he’ll be back for marginally more money that aligns with the length of the rest of Kawhi Leonard‘s contract; Leonard is on the hook for roughly $100 million for the next two seasons.

According to Spotrac, Harden will be on the books for $39.2 million this upcoming season (25.3 percent of cap) and $42.3 million next season (24.9 percent).

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He made an All-Star team for the first time since 2021-22 last year, averaging 22.8 points, 5.8 rebounds, 8.7 assists and 1.5 steals. I’m not quite sure he’ll have enough juice to replicate his regular season, but the Clippers still have some flexibility if they want to add.

Los Angeles still has $14 million in luxury tax space, in addition to being $22 million below the first apron and $34 million below the second apron, according to capsheets.com. The Clippers can still use their non-taxpayer mid-level exception and a few of their smaller trade exceptions, most notably P.J. Tucker‘s $6.5 million, to add while staying below the first apron.

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