The Cleveland Cavaliers made their biggest move of the offsesaon by acquiring free agent star Peyton Watson from the Denver Nuggets in a seismic sign-and-trade.
Watson, 23, is viewed as one of the NBA’s ascending star two-way wings. The Cavs had been exploring ways to address their starting small forward position for a while, ultimately landing on Watson after the door opened to Watson’s exit from Denver.
The Cavs’ next order of business is James Harden, who has been a free agent for several weeks as he has waited patiently to allow Cleveland’s front office to handle some priorities. According to NBA insider Brett Siegel, Harden and the Cavs are likely to come to terms on a new contract now that Watson has landed in Cleveland.
“Once this Peyton Watson deal is fully finalized by the league, James Harden’s deal will follow shortly after,” Siegel wrote.
James Harden’s Potential Exit from the Cavaliers
GettyNEW YORK, NEW YORK – MAY 19: James Harden #1 of the Cleveland Cavaliers drives around Mikal Bridges #25 of the New York Knicks during the first quarter in 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)
Harden, an 11-time All-Star, was acquired ahead of last season’s trade deadline in a deal that sent Darius Garland to the Los Angeles Clippers. It was an interesting move, to say the least, given Harden’s age versus Garland’s upside.
According to ClutchPoints’ Jedd Pagaduan, if Harden and the Cavs were to split this offseason, one path both sides could take is a sign-and-trade that reunites Harden with the Houston Rockets.
“If anything, the Rockets may be the only legitimate potential suitor for Harden,” Pagaduan wrote. “Houston may be getting Fred VanVleet back, but this team needs a much more prolific offensive engine especially after seeing how their team flopped in the 2026 NBA playoffs. VanVleet is solid on defense and he executes well on offense, but Harden is a system onto himself, and he can shoulder a heavy offensive workload without suffering steep drop-offs in performance. VanVleet is making $25 million in the final year of his contract, and this fits quite well on the Cavs’ books, as they need not make any further moves to fit in his contract in a potential sign-and-trade.”
Considering the Cavs reportedly have been $25 and $28 million to spend on Harden after acquiring Watson on a four-year, $88 million contract, a sign-and-trade involving Harden and VanVleet is possible.
But it appears the only way Harden departs from Cleveland is if he asks to be moved. All signs show that the Cavs are committed to Harden.
Cleveland Expected to Retain Harden
The Cavs reached the conference finals last season despite Harden getting only half a season of burn with his new teammates after the trade deadline. With Watson now in the mix, Cleveland must like its chances to contend in the East again next season.
“The Cavs also cannot afford to lose an asset of Harden’s caliber, especially when they traded away homegrown star Darius Garland to bring him in,” Pagaduan wrote. “Their options at point guard also won’t be the best should Harden leave for some reason, as this would thrust Craig Porter Jr., a solid backup, into a role that he may not be ready for. It’s not quite realistic for Harden to leave the Cavs anyway. At this point in free agency, most teams have settled their rosters for next season. But it’s worth taking a look nonetheless at some scenarios in which Harden could possibly choose to play elsewhere.”
After he was acquired from the Clippers in February, Harden averaged nearly 21 points and eight assists per game while shooting over 43 percent from the 3-point line for the Cavs.
Like HEAVY’s content? Be sure to follow us.
This article was originally published on HEAVY
The post Cavaliers Could Trade James Harden to Former Team After $88M Watson Deal appeared first on HEAVY.