Rockets Plan to File NBA's Disabled Players Exemption for Fred VanVleet

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The Houston Rockets suffered a major blow to their roster this season when Fred VanVleet tore his ACL prior to training camp. Not only did the injury happen so close to the start of the season, giving the Rockets little time to get acclimated in his absence, but they also already had a thin backcourt.
Now, the Rockets are navigating life without VanVleet on the court, and it has resulted in a 0-2 start. While there's no reason to panic, Houston is certainly missing its floor general and veteran leader, who averaged 14.1 points, 3.7 rebounds, 5.6 assists and 1.6 steals per game last season.
In the wake of VanVleet potentially being out for the entire 2025-26 season, the Rockets plan to file for a Disabled Players Exemption, according to Kelly Iko of Yahoo Sports. The exemption would account for 50% of VanVleet's salary this season, which is $25 million. Houston would receive $12.5 million back.
With point guard Fred VanVleet currently sidelined with a torn right ACL, the Houston Rockets plan to file for a Disabled Players Exemption, source told @YahooSports. Under the current CBA, the exemption would be equivalent to 50 percent of VanVleet’s $25 million salary.
— Kelly Iko (@KellyIko) October 27, 2025
The Rockets essentially reworked the 31-year-old's salary this past summer. Declining his $40 million team option and re-signing him to a two-year, $50 million deal. VanVleet was set to run a new and improved offense alongside Kevin Durant, Alperen Sengun, Amen Thompson and the rest of Houston's core.
Unfortunately, the Disabled Players Exemption does not mean the Rockets can go out and immediately sign a player for $12.5 million or less. Houston is hard-capped at the dreaded first apron, which means any signing would inflict penalties on the organization.
The Rockets can trade salaries to make room for talent, but it wouldn't make any sense right now. The only tradeable players from now until December 15 are Durant, Sengun, Thompson, Tari Eason and Reed Sheppard, all key rotation pieces.
Sheppard has been asked to step up off the bench, but has struggled to do so thus far. He's averaging nine points and 2.5 assists per game on 27.3% shooting from the field, while also finding trouble on the defensive end.
The second-year guard is a potential trade candidate if the Rockets explore the market for a point guard later in the season. They already made a major win-now move in acquiring Durant and other veterans, so it wouldn't be off-brand for Houston to go after a veteran floor general.
Houston, in all likelihood, will keep the roster the way it is, but rumors should start to flood in once December 15 hits. More players will become tradeable, and if there are still noticeable struggles, perhaps the Rockets will explore the market. For now, they'll try to do what they can without VanVleet.

Jed is a student at the University of Wisconsin-Madison majoring in journalism. He also contributes at several other basketball outlets, including has his own basketball blog and podcast — The Sixth Man Report.