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USA Today Sports Media Group
USA Today Sports Media Group
Sport
Bryan Kalbrosky

How James Harden’s unprecedented new contract gave the 76ers cap flexibility to improve this offseason

James Harden officially re-signed with the 76ers on Wednesday.

Although this move was long anticipated and first reported by ESPN’s Adrian Wojnarowski a week prior, the official negotiations carried into late July as both sides were eager to see how the free agency and trade market played out before putting pen to paper and agreeing to a deal.

The final deal is a two-year, $68.64 million deal with a player option for the second season, USA TODAY Sports Media Group’s For The Win has since confirmed. Harden will earn $33 million next season, and if he opts into his second season, he will earn an 8 percent raise to $35.64 million.

Harden’s longtime business manager and NBPA-certified agent Lorenzo McCloud, who has a long-standing relationship with Daryl Morey and 76ers ownership, handled the negotiations for the deal.

McCloud also helped orchestrate Harden’s move from Houston to Brooklyn in 2021 and then from Brooklyn to Philadelphia in 2022. The 32-year-old former college basketball player is originally from South Central, Los Angeles. He has experience working under former agent and current Lakers executive Rob Pelinka, who represented Harden and many other high-profile players.

What is particularly interesting about Harden’s deal is that could have earned up to $47.4 million before opting out of his contract at the end of June.

His decision to decline his player option to take a $15 million pay cut is unprecedented. But he recently explained his logic to league insider Chris Haynes (via Yahoo Sports):

“I had conversations with Daryl, and it was explained how we could get better and what the market value was for certain players. I told Daryl to improve the roster, sign who we needed to sign and give me whatever is left over … This is how bad I want to win. I want to compete for a championship. That’s all that matters to me at this stage. I’m willing to take less to put us in position to accomplish that.”

This decision by the former MVP and three-time NBA scoring champion helped the 76ers to improve their roster and land key players including PJ Tucker, Danuel House, and De’Anthony Melton.

Philadelphia entered the offseason with no salary cap space and would have been over the salary cap apron ($156.9 million) had Harden exercised his player option. A team over the salary cap apron is only allowed to offer a free agent the Taxpayer Mid-Level Exception of $6.5 million, which would have restricted the 76ers opportunities to improve the roster.

By opting out of his player option and signing for $15 million less than his max, however, James moved the 76ers far enough under the salary cap apron line to allow Philadelphia’s front office to use both the Nontaxpayer Mid-Level Exception ($10.5 million for Tucker) and the Bi-Annual Exception ($4.1 million for House).

Harden’s willingness to take “whatever is left” was a massive victory for Philadelphia’s front office this offseason. But that wasn’t the only good news for fans.

Harden recently admitted he “wasn’t right” last season, but recently told AP Sports that he is “finally back” and will be more aggressive as a scorer next season. The team is set to enter the campaign as one of the favorites to win the Eastern Conference.

Next season, Harden looks to bounce back alongside Joel Embiid to help win his first NBA championship — and Philadelphia’s first NBA title since 1983.

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