James Harden declines option to return to Cleveland Cavaliers

Cleveland Cavaliers guard James Harden declined his $42 million player option according to Shams Charania.

Fortunately for the Cavaliers, Harden is expected to be working on a long-term extension with the team with a more manageable yearly salary in mind.

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Cleveland Cavaliers’ James Harden is declining his $42.3 million player option for 2026-27 and the sides are working through a new multiyear deal together, sources tell ESPN. pic.twitter.com/UiE1bn3BnP

— Shams Charania (@ShamsCharania) June 29, 2026

Harden was traded from the Los Angeles Clippers to Cleveland at the deadline last season in exchange for young guard Darius Garland.

The 11-time all-star helped the Cavaliers reach the Eastern Conference Finals where it ultimately lost to the eventual champions, the New York Knicks.

Resigning Harden will be a priority for a Cavaliers team whose free agent options appear to be limited to build around Donovan Mitchell, Evan Mobley and Jarrett Allen.

Patrick Dowd is a contributor for Ball Exclusives. You can follow him on Twitter, via Pat_Dowd77