James Harden and the Cleveland Cavaliers have agreed to a three-year, $97 million contract with a player option for the 2028-29 season and a trade kicker. Harden became a free agent this offseason and waited for the Cavaliers to finish their offseason business which included a sign-and-trade for Peyton Watson before finalizing his contract.

Harden played a key role in recruiting Watson during his restricted free agency.

Harden was always expected to re-sign with the Cavaliers on a multi-year deal at a lower number following his trade from the Los Angeles Clippers. Harden declined his $42.3 million player option and will now be on a contract with a $32.3 million annual average value.

Harden averaged 19.2 points, 5.5 assists and 5.1 rebounds in 18 postseason games with the Cavaliers as they reached the Eastern Conference Finals.