Cavaliers Receive Good News About James Harden After Signing Peyton Watson

The Cleveland Cavaliers have been waiting to sign James Harden since he opted out of his $42.3 million player option in June. 

But after they complete the Peyton Watson sign-and-trade deal with the Denver Nuggets, the Cavaliers could finally be nearing a deal with Harden. 

According to NBA insider Brett Siegel of ClutchPoints, the Cavaliers will be completing a new deal with Harden once the league makes the Watson deal official. 

“Once this Peyton Watson deal is fully finalized by the league, James Harden’s deal will follow shortly after,” Siegel wrote.

Harden is reportedly expected to sign a new deal starting around $30 million annually. Lowering the first-year figure helps the Cavaliers attempt to navigate out of the restrictive second apron.

Harden averaged 20.5 points, 7.7 assists, and 4.8 rebounds per game over 26 regular-season appearances for the Cavaliers during the 2025-2026 NBA season, shooting 46.6% from the field and an impressive 43.5% from 3-point range.

During the 2026 NBA Playoffs, Harden averaged 19.2 points, 5.5 assists, and 5.1 rebounds across 18 games for the Cavaliers, helping the team reach deep into the postseason before they fell to the eventual NBA champions New York Knicks in the Eastern Conference Finals.

By not signing him immediately, the Cavaliers buy time to get more help in their roster. 

Peyton Watson Brings Versatility To Harden-Led Cavaliers

GettyDENVER, COLORADO – NOVEMBER 14: Peyton Watson #8 of the Denver Nuggets goes to the basket against James Harden #1 of the Los Angeles Clippers in the first quarter at Ball Arena on November 14, 2023 in Denver, Colorado. (Photo by Matthew Stockman/Getty Images)

Watson has agreed to a four-year, $88 million contract with the Cavaliers. This acquisition was finalized through a complex four-team sign-and-trade transaction.

Watson enters his fifth NBA season coming off a breakout year. He averaged career highs of 14.6 points, 4.9 rebounds, and 2.1 assists. 

He also shot a highly efficient 41.1% from three-point range across 54 games. 

The 23-year-old, 6-foot-8 forward gives Cleveland a versatile, elite two-way player. He is expected to step in immediately as the team’s starting small forward.

Cleveland finalized the deal by sending starting wing Max Strus to the Los Angeles Clippers. To satisfy Denver’s demand for future assets, the Cavaliers routed an unprotected 2031 first-round pick and a 2032 second-round pick (originally from the Sacramento Kings) to the Nuggets.

The Cavaliers then sent newly acquired guard Tre Mann, a 2027 second-round pick (via the Clippers), and cash considerations to Washington. In return, Cleveland landed 22-year-old forward Cam Whitmore from the Wizards.

James Harden Loves To Be In Cleveland

GettyNEW YORK, NEW YORK – MAY 19: James Harden #1 of the Cleveland Cavaliers in action against the New York Knicks during Game One of the NBA Eastern Conference Finals at Madison Square Garden on May 19, 2026 in New York City. (Photo by Sarah Stier/Getty Images)

James Harden, who is 36 years old, only has positive words for the Cavaliers after their playoff exit last May.  

According to Harden, he loves being in Cleveland and that they have unfinished business alongside Donovan Mitchell, Jarrett Allen, and Evan Mobley. 

“Yes. 100%. Definitely. Both. Yes,” Harden said when asked if he wants to stay in Cleveland. “Definitely want to be here. I think we found something. It’s tough not ending how we wanted to, but I think we found something.”

Initially, Harden opted out of his player contract to allow the team to pursue LeBron James in free agency, but it did not work out.

Now, they have to face several retooled Eastern Conference teams for the upcoming NBA season.

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