Kevin Durant contract extension, explained: How Rockets star's potential new deal could impact Houston's salary cap

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After months of discord and weeks of speculation, Kevin Durant finally has a new home.

The former Suns standout and future Hall of Famer joined the fifth franchise of his glittering career on Sunday, being dealt to the Rockets in exchange for Jalen Green, Dillon Brooks, the No. 10 selection in the 2025 NBA Draft and five second round picks.

At 37, Durant is clearly in the twilight of his playing career. Yet he remains effective as ever, putting the finishing touches on his third straight season averaging 25 points while shooting 50 percent from the field and 40 percent from the three point line — the longest such streak in league history.

Durant's age and contract situation inspired caution among some of his alleged suitors. His production assuaged those concerns. Now comes the next test: inking Durant to a (somewhat) long term deal.

MORE KEVIN DURANT TRADE NEWS:

Here's what you need to know about Durant's contract as well as the implications an extension could have on the Rockets' cap situation.

Kevin Durant contract details

  • Years left: One
  • Value: $54.7 million

Durant has one year remaining in the four-year, $194.2 million contract he inked with the Nets ahead of the 2022-23 season. He is eligible to sign a two-year, $122 million extension this offseason.

Prior to his departure, Durant laid out a trio of teams he was reportedly interesting in landing with. According to ESPN's Shams Charania, those sides — the Rockets, Spurs and Heat — represented franchises he was open to signing an extension with. With only seven players on the books for the 2026-27 season, Houston should have the space to keep Durant in house for the semi-long term.

Rockets salary cap situation after Kevin Durant trade

Durant's salary is effectively equivalent to that of Jalen Green and Dillon Brooks, so his arrival shouldn't pose create too many craters in Houston's cap projections for the 2025-26 campaign. The Rockets are expected to dip into the second apron, although only slightly, retaining an additional $3.1 million of wiggle room, per Spotrac.

That figure could grow, too. Houston holds team options on Fred VanVleet ($44.9 million) and Aaron Holiday ($4.9 million). Perhaps the Rockets could cut Holiday loose and renegotiate terms with VanVleet to open up a little more pocket space.

Houston should benefit from its fairly youthful nature — Amen Thompson and Reed Sheppard are locked into rookie deals for the following few seasons. That, too, should give the Rockets a little more breathing room as it attempts to lock Durant into a contract extension for the 2026-27 and 2027-28 seasons.

Here's a look at the Rockets' salary cap holds for the upcoming few years, per Spotrac.

PlayerPosition2025-26 salary2026-27 salary2027-28 salary
Kevin DurantF$54,708,609
Fred VanVleetG$44,886,930 (team option)
Alperen SengunC$33,944,954$35,642,202$37,339,450
Steven AdamsC$14,130,145$13,000,000$11,869,565
Jabari Smith Jr.F$12,350,392
Reed SheppardG$10,603,560$11,108,880 (team option)$14,041,625 (team option)
Amen ThompsonG$9,960,600$12,258,609 (team option)
Jock LandaleC$8,000,000$8,000,000
Tari EasonF$5,675,766
Aaron HolidayG$4,901,400 (team option)
Cam WhitmoreF$3,539,760$5,458,810 (team option)
Nate WilliamsG$2,270,735$2,461,462$2,789,215 (team option)
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