LOS ANGELES – James Harden is staying home — and doing the Los Angeles Clippers a major favor in the process. The 11-time All-Star will decline his player option and sign a fresh two-year, $81.5 million deal with the Clippers, ESPN reports. The second year of this extension includes a player option and partial guarantee, giving both sides room to adjust if needed. James Harden’s extension aligns perfectly with the Clippers’ future. Harden’s decision frees up extra maneuvering space while giving him a well-earned raise. “He’s our No. 1 priority. We’re super hopeful that James is here, and he’s here for a long time,” Clippers president Lawrence Frank said this week.
James Harden’s $81.5 Million Deal Gives Clippers Major Offseason Boost
Why Harden’s Extension Matters
By declining his $36.4 million option and inking this extension with the Clippers, James Harden preserves the team’s flexibility. They now have about $14.4 million in luxury tax space and over $22 million under the first apron, according to salary cap analyst Yossi Gozlan.
Los Angeles Clippers salary cap and apron situation with James Harden re-signing and Nicolas Batum opting out.
They have enough flexibility to use the full $14.1 million mid-level and re-sign Batum.
They could gain additional $4.8 million in flexibility by waiving Drew Eubanks. pic.twitter.com/epiQZ66pnJ
— Yossi Gozlan (@YossiGozlan) June 29, 2025
Those numbers matter. The Clippers can use the full $14.1 million mid-level exception, can go over the cap to re-sign Nicolas Batum, and target another high-level role player. They might even pursue a sign-and-trade deal for someone like Jonathan Kuminga or chase Nickeil Alexander-Walker in free agency.
If they waive Drew Eubanks, they open nearly $5 million more in space. That money could strengthen the roster around Kawhi Leonard and Harden, who now share a timeline. “This deal shows James is committed to helping us keep our window open,” Frank said.
Contrast with Other Stars
Harden’s move stands in stark contrast to LeBron James, who picked up his massive $52.6 million option with the Lakers. By extending on more team-friendly terms, Harden signals that he wants the Clippers to remain aggressive in free agency. He’s betting on the franchise’s vision — and his ability to keep delivering at age 36.
Harden is coming off his best season in years. With Paul George gone to Philadelphia and Kawhi battling knee issues, Harden carried the Clippers early. He returned to the All-Star Game for the first time in three seasons and earned an All-NBA nod for the first time in five years. He averaged 8.7 assists per game and finished fifth in free throws made.
A Hometown Star with More to Prove
Born in Los Angeles and raised in Compton, Harden has found his basketball home with the Clippers. After bouncing from Houston to Brooklyn to Philadelphia, his stint in L.A. has brought him back to relevance. “James loves it here — his family is here. He’s focused on winning,” a team source said.
Still, the veteran has work to do. Harden’s playoffs ended on a low note, scoring just seven points in a Game 7 loss to Denver. He then skipped his media obligations. Despite that, the Clippers believe Harden’s best chance to add a championship ring still runs through this roster.
Next Moves for the Clippers
The Clippers must build wisely around this James Harden extension. They’re exploring ways to retain Batum and Amir Coffey while using their mid-level exception creatively. Insider Zach Lowe of the Ringer thinks Ty Jerome could be an interesting target. A sign-and-trade for Kuminga remains possible. Harden’s contract gives them the breathing room to try it all.
A Calculated Bet
Harden turns 36 this summer. Some question if he can stay at an elite level, but his 79-game campaign in 2024-25 showed he has plenty left. He logged nearly 2,800 minutes — his highest in eight years. Harden’s commitment to this cheaper extension proves he wants one more deep playoff push in his hometown.
If it pays off, both he and the Clippers might finally break through together.
© Ron Chenoy-Imagn Images
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