Free agent James Harden has agreed to a new three-year, $97 million contract to return to the Cleveland Cavaliers, with a player option for 2028-29 and a trade kicker, agents Mike Silverman, Troy Payne and Brandon Grier of Equity Sports told ESPN on Thursday.
Harden's career earnings will now reach $511 million, making him the fourth player in NBA history to eclipse the $500 million mark, joining the Philadelphia 76ers' LeBron James, the Houston Rockets' Kevin Durant and the Golden State Warriors' Stephen Curry.
Harden turns 37 on Aug. 26, and when the 11-time NBA All-Star officially signs, he will become the second player in league history to sign for over $90 million in guaranteed salary at age 37 or older, with James being the other. The new contract will take Harden, who is entering Year 18, into a 20th NBA season.
In June, Harden declined his $42.3 million player option. But at the outset of free agency, he and his agents worked with the Cavaliers on two- and three-year structures on a new deal. Harden ultimately allowed Cleveland to use as much time as needed this offseason to add to its roster.
The Cavaliers needed Harden to lower his annual salary in a three-year deal, versus a more costly two-year deal, in order to get under the first and second aprons -- as well as to give Cleveland the time necessary late into the offseason to trade for Peyton Watson, which the Cavs executed Wednesday, sending Max Strus to the Clippers, and their 2031 first-round pick and a 2032 second-round pick via the Sacramento Kings to the Denver Nuggets in a five-team deal.
Last week, the Cavs dealt guard Dennis Schroder to Charlotte in return for Tre Mann, who was ultimately flipped to Washington as part of the aforementioned five-team deal.
Harden played a key recruiting role with Watson during his restricted free agency, staying in active communication to push him to Cleveland, according to sources. The Cavaliers will now boast a starting lineup of Harden, Donovan Mitchell, Watson, Evan Mobley and Jarrett Allen.
After missing out on James in free agency in July, Cavaliers president Koby Altman made a series of roster moves to infuse Watson, 23, and EuroLeague star Mario Hezonja and take the team out of both aprons. Mitchell also committed to a new maximum contract extension with the Cavaliers through the 2030-31 season.
The Cavs acquired Harden from the LA Clippers in early February for Darius Garland. Cleveland went 21-9 after Harden debuted, compiling the fifth-best record after Feb. 7, as he averaged 20.5 points, 7.7 assists and 4.8 rebounds after the All-Star break.
Cleveland made its first Eastern Conference finals since 2018 behind the addition of Harden, who averaged 19.2 points, 5.5 assists and 5.1 rebounds in 18 postseason games. He provided an additional playmaker alongside Mitchell in the backcourt, leading the NBA in isolations ran and ranking second in made step-back 3-pointers last season, according to GeniusIQ.
In NBA history, only Curry is a more prolific 3-point shooter than Harden, who ranks second all-time in career three-point field goals made. Harden enters this season No. 9 on the NBA's career points list, and the 2018 league MVP is a three-time scoring champion and two-time assist champion.