The Cleveland Cavs did everything they could to improve, signing James Harden to an extension after trading for Peyton Watson from the Denver Nuggets. Amid a competitive Eastern Conference following the New York Knicks’ 2026 NBA Finals win and LeBron James’s decision to play for the Philadelphia 76ers, the Cavs made a significant tweak.
The necessary pivot to trading for Watson before inking Harden to a three-year, $97 million extension cements a promising core capable of competing for a championship. It’s been head coach Kenny Atkinson’s goal since his arrival. He led them to the second-best regular-season record in franchise history in 2024-25 (64-18).
However, injuries prevented that team from reaching its full potential. It also led the Cavs front office to question whether All-Star Donovan Mitchell needed another 20-point scorer—someone who could score and facilitate at a higher level than his backcourt running mate in Darius Garland.
Following Harden’s trade request to the LA Clippers, the Cavs leaped at the opportunity to acquire him. Despite a lingering contract extension, Cleveland knew what it was getting in the 2018 MVP. The Cavs knew they’d have to give the veteran a hefty payday, but they must have hoped he’d take a somewhat of a discount if it meant playing for his first title.
Their hopes were answered. Harden reportedly took a lesser deal to create enough cap space for the Cavs to complete a sign-and-trade to land their 3-and-D wing in Watson, according to ESPN’s Brian Windhorst.
“James Harden was willing to opt out of that contract and sit around all summer, and basically pick up the phone whenever the Cavs called and say, ‘Yeah, I’ll go down a little farther. I’ll go down a little farther,’” Windhorst said. “So as the Cavs made various moves, Harden was not only willing to reduce his salary, but he was willing to recruit. He—from what I understand—he recruited Peyton Watson.”
Watson gives the Cavs a strong defensive wing presence. During three 30-point games last season, he averaged 21.9 points throughout a 16-game stretch while Denver Nuggets All-Star Nikola Jokic was sidelined. Watson finished the season averaging 14.6 points, including making 41.1% of his 3-point attempts, 4.9 rebounds, and 1.1 blocks per game.
His offensive upside is encouraging for a Cavs team led by Mitchell, Harden, and Evan Mobley, three 18+ points-per-game scorers who will create many open looks for Watson. All of a sudden, the Cavs have their OG Anunoby, who anchored the Knicks’ perimeter defense in their 4-0 sweep against Cleveland. Anunoby also proved how important a player of his caliber is in the Finals.
Watson’s development is headed down a similar path, and a solution for Jaylen Brown, James, and the revamped Sixers. He should be a thorn in the side of the top teams in the Eastern Conference on one end of the floor, and a consistent 3-point shooting threat on the other, where Peyton made over 40% of his attempts from behind the arc.
When you put the Cavs’ upcoming season into perspective, and where they stand amidst a championship window, you get a better understanding as to why re-signing Harden to a long-term extension was a no-brainer.
NBA reporter calls Cavs’ James Harden extension ‘irresponsible’
It’s difficult to compare Cavs guard James Harden’s contract extension to his past, considering where he is at this stage of his career. One NBA reporter called the Cavs irresponsible for extending James Harden on a three-year, $97 million deal. It’s a flawed take considering what the team pulled off beforehand.
The old Harden most likely walks. This version of Harden knows the tax penalties that come with the second apron, and that if the Cavs want to compete with the likes of the defending champion Knicks, the 76ers, the Pistons, and the rest of the Eastern Conference, they desperately need defensive help at the wing position. Their 4-0 sweep in the Eastern Conference Finals led them to this conclusion.
Still, some reporters will only look at the figures in Harden’s new deal, which could be his last, through an old lens, as CBS Sports’ Sam Quinn noted.
“It’s that third year that really gets me. If you were to do a two-year deal in that $60 million range, which is something we were expecting considering where they were financially, after getting Peyton Watson, I might have been OK with it,” Quinn said. “Paying him over $30 million dollars in his age 39 season, seems very, very irresponsible to me.
“Obviously, his playoff track record speaks for itself. I might be very scared of how that contract is going to age. I kind of chuckled to myself when I saw the trade kicker, because nobody’s trading for that contract. 3 years, $97 million dollars for somebody who turns 37 next week, I just think that’s a little bit irresponsible.”
Before his extension, James Harden averaged 20.5 points on 46.6/43.5/84.0 splits, 7.7 assists, and 4.8 rebounds in 26 regular-season games for the Cavs last season, following his trade from the Clippers. Those numbers dipped slightly during the playoffs, where Harden averaged 19.2 points on 41% shooting, including 29.9% from deep, 5.5 assists, and 5.1 rebounds.
However, ahead of Harden’s first full season with the Cavs, you can understand why the front office is taking a chance on another successful season. A championship is all that’s left for Harden to achieve, and it’s something that his naysayers will point to as his fault for never sticking with a team long enough to win.
But it’s never been easy for Harden, even in his best years with the Rockets in 2017-18, a team often referred to as one of the best NBA teams to never win a title; the Warriors’ dynasty stood in his way. This time is different. The Cavs, equipped with 2025 Defensive Player of the Year Evan Mobley, a rim protector in Jarrett Allen, and a strong 3-and-D weapon in Watson, have a much more well-rounded group.
This puts them in a great position to take down the defending-champion Knicks and all their competitors in the Eastern Conference. After all, the 2026-27 Cavs’ upcoming season is most likely Harden’s best shot to win it all.