Fred VanVleet joined the Houston Rockets as a free agent in the summer of 2023. Since then, he has established himself as a leader and veteran presence on the team. VanVleet is a former champion and a tailor-made point guard for coach Ime Udoka’s system. He had a team option on his contract for the next year, and he and the Rockets came into a new extension.
What Fred VanVleet New Contract Means for the Rockets’ Future
VanVleet had a team option at $44 million for next season, but the Rockets declined that option and plan to give him a new, two-year contract. The new contract is at $50 million, with a reported player option for the 2026-27 season. With that option, he can enter free agency in 2026, when there will be more teams with money to spend. What the new contract does is keep him in Houston for one more year at least, and then, anything is possible.
VanVleet will be 32 years old next summer, with a last chance to secure another big, long-term contract. The last time he was a free agent, he secured a three-year, $130 million contract with the Rockets.
The Rockets Save Money With VanVleet’s Contract
When the Rockets traded for Kevin Durant, they absorbed his $54.7 million contract for next season. They will likely sign him to an extension. With Durant making $50+ million and Alperen Sengun making $33.9 million, the Rockets couldn’t afford another player with a high salary. By declining his option and giving him two years at $50 million, the Rockets lowered their payroll for the 2025-26 season.
For next season, the cap is projected at $154 million, and the luxury tax at $187.9 million. The first apron is set at $195 million, and the second apron at $207.8 million. Depending on what the Rockets do until the start of training camp, they will likely finish below the first apron. That should give them plenty of options to make new deals at the trade deadline. Despite trading for KD, they kept plenty of future draft capital that they can use in trades to bolster their roster. Depending on where they stand at the deadline, Houston can go all-in and hope to compete for a championship next season.
Why VanVleet Did It?
VanVleet’s scoring has dropped since he joined Houston. In his last year in Toronto, Fred was averaging 19.3 points. Since then, he averaged 17.4 and 14.1 points in the last two seasons. Last season, his efficiency dropped as well. His production didn’t warrant a huge contract this summer. Additionally, there were not many teams with cap space that could offer him a long-term contract.
Next summer, Fred VanVleet will be a 10-year veteran, and he will be eligible for a new, higher contract because of it. Houston would certainly love to have him back, and depending on the situation, they can offer him a longer contract.
Can the Rockets Compete for a Championship?
VanVleet was one of the more consistent players for the Rockets during their first-round matchup with the Golden State Warriors. The point guard improved his scoring and efficiency compared to his regular-season numbers. With Durant, Houston will have two proven championship players next year. With their depth and assets, Houston can get even more help at the deadline if they need to. Right now, the Rockets have the third-best odds to win the championship next year, behind the Oklahoma City Thunder and the Cleveland Cavaliers.
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