Fred VanVleet Picks Up $25 Million Player Option With Houston Rockets

Houston will owe the veteran point guard $25 million after he tore his ACL in 2025.

Apr 18, 2026; Los Angeles, California, USA; Houston Rockets guard Fred Vanvleet (5) watches from the bench against the Los Angeles Lakers in the second half during game one of the first round of the 2026 NBA Playoffs at Crypto.com Arena. Mandatory Credit: Kirby Lee-Imagn Images | Kirby Lee-Imagn Images

After weeks of speculation regarding a potential contract restructure, Fred VanVleet will return to the Houston Rockets for the 2026-27 season, but while opting into his $25 million player option, according to ESPN's Shams Charania.

The veteran and former All-Star missed the entire 2025-26 season due to a torn ACL. VanVleet has been with the Rockets since 2023 as a key role player and floor general for the young core. There was speculation as to whether he and Houston could restructure his contract for the second year in a row, but he will take the player option and be set to enter unrestricted free agency in 2027.

In 2024-25, VanVleet averaged 14.1 points, 3.7 rebounds, 5.6 assists and 1.6 steals per game en route to Houston's first playoff appearance since 2020. In the first round, despite a loss to the Golden State Warriors, he elevated his production to 18.7 points, 4.1 rebounds and 4.4 assists across seven games.

That offseason, Houston declined his $44.9 million team option to sign a new two-year, $50 million contract. The Rockets got him back on a cheaper AAV, but he didn't get to prove himself this past season due to the ACL tear.

VanVleet's absence left a glaring weakness within Houston's rotation. Without a true point guard and another three-point threat, the Rockets ranked 27th in turnover percentage and 25th in three-pointers made per game. Those struggles carried over into Houston's first-round exit to the Los Angeles Lakers.

Barring any moves involving the two, Kevin Durant will have the chance to play with VanVleet as the floor general in 2026-27. Houston ran a committee of point guards this year, headlined by Durant, Amen Thompson and Alperen Sengun, among others.

Now, the Rockets have their initiator set in stone. VanVleet should improve the fluidity of the offense, with Durant and Sengun no longer getting double-teamed just across half-court.

The tasks to look toward now are Tari Eason's restricted free agency and Thompson's looming contract extension. Despite the Rockets being able to match any offer Eason receives, lingering teams can outbid them and force Houston to let him walk for a large contract.

As for Thompson, if he and the Rockets can't reach an extension, he too will hit the market in 2027. The 23-year-old took his offense to another level this past season, averaging 18.3 points, 7.8 rebounds, 5.3 assists and 1.5 steals per game.