It's clear what the Cavs have to do in free agency after pulling off a sign-and-trade for Peyton Watson on Wednesday.
Peyton Watson in Cavs uniform in the middle, with head cutouts of a smiling James Harden all over
Peyton Watson in Cavs uniform in the middle, with head cutouts of a smiling James Harden all over
The Cleveland Cavaliers addressed a longstanding weakness of the roster on Wednesday night when they signed and traded for Peyton Watson in a three-team deal with the Denver Nuggets and Los Angeles Clippers. Watson's stats on the surface may not blow anyone away, but anyone who was keeping tabs on the 23-year-old forward knows that he's on the verge of breaking out into a star-level player.
When Watson got his opportunity amid the Nuggets' injuries around December 2025 to February 2026, he put up over 20 points per game in a starting role. His three-point shot was much-improved, and he flashed shot-creation skills off the bounce that he previously didn't get a chance to show off.
Standing at 6'8″ with a wingspan of approximately 7'1″, Watson also has the prototypical size for a small forward that the Cavs have badly needed in the Donovan Mitchell era. This trade did cost the Cavs Max Strus, a beloved veteran of the roster and an important voice in the locker room, but there is no doubting the fact that this trade improved Cleveland's roster and elevated the team's ceiling.
But it's clear that the Cavs are not done yet, as they have the free agency of one more important piece to deal with.
Cavs should re-sign James Harden soon
Cleveland Cavaliers guard James Harden (1) reacts during the second quarter of game two of the eastern conference finals of the 2026 NBA playoffs against the New York Knicks at Madison Square Garden.
Vincent Carchietta-Imagn Images
James Harden had a player option for the 2026-27 season worth $42.3 million, which he declined to enter free agency. This decision was clearly made with the goal of giving the Cavs more flexibility in free agency, and Cleveland, after striking out on LeBron James, definitely did their part in doing so after pulling off their heist for Watson.
This offseason has been huge for the Cavs, especially after signing Watson. They continue to distance themselves from the second apron, and they have addressed the roster's biggest weakness. As things stand, the Cavs have around $182.7 million in salary obligations for next season.
However, the sign-and-trade for Watson hard caps the Cavs at the first apron, so they cannot go over $209.1 million in salary obligations. This means that they only have around $26 million to offer Harden as the starting salary for next season should they not make any other moves.
It's hard to imagine Harden signing a contract worth under $30 million for a single season, so there might be some more salary dumping for the Cavs to do. They did trade Tre Mann to the Washington Wizards for Cam Whitmore to create more space, but even then, Whitmore is making $5.5 million next season and is the obvious candidate to either be waived or traded away without taking anyone back.
Whatever the case may be, it doesn't need much explanation as to why the Cavs need to bring back Harden. For starters, Harden was actually good for the Cavs, playoff blemishes aside, and Cleveland played at a 60-win pace with Harden on the team following the trade deadline.
Harden's presence helps unlock scoring opportunities for the Cavs' big men, particularly Jarrett Allen, with the two building some solid pick-and-roll chemistry.
The Cavs also cannot afford to lose an asset of Harden's caliber, especially when they traded away homegrown star Darius Garland to bring him in. Their options at point guard also won't be the best should Harden leave for some reason, as this would thrust Craig Porter Jr., a solid backup, into a role that he may not be ready for.
It's not quite realistic for Harden to leave the Cavs anyway. At this point in free agency, most teams have settled their rosters for next season. But it's worth taking a look nonetheless at some scenarios in which Harden could possibly choose to play elsewhere.
How can Harden leave Cleveland?
Houston Rockets forward Kevin Durant (7) talks with Los Angeles Clippers guard James Harden (1) during the third quarter at Toyota Center.
Troy Taormina-Imagn Images
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At this juncture, only three teams sit below the salary cap — the Memphis Grizzlies, Chicago Bulls, and Brooklyn Nets. Anything is possible, but it would take an unforeseen turn of events for Harden to choose to sign with any of those rebuilding teams.
The best deal other teams can offer is the non-taxpayer midlevel exception worth $15 million. The Cavs can offer over $10 million more than that as things stand, so Harden is not going to settle for less.
Any potential departure for Harden from the Cavs could come via a sign-and-trade. Teams in need of a point guard that could conceivably make a run at Harden are the Houston Rockets and Toronto Raptors.
The Raptors are yet to complete the Kawhi Leonard trade, and it is going to be difficult for them to pull off a sign-and-trade for Harden considering that Immanuel Quickley is making $32.5 million per season.
The Cavs do not have the space under the first apron to absorb Quickley in a potential sign-and-trade, and it's not quite clear how much appetite Toronto will have for a trade of that sort, even though Harden and Leonard have some experience playing together.
If anything, the Rockets may be the only legitimate potential suitor for Harden. Houston may be getting Fred VanVleet back, but this team needs a much more prolific offensive engine especially after seeing how their team flopped in the 2026 NBA playoffs.
VanVleet is solid on defense and he executes well on offense, but Harden is a system onto himself, and he can shoulder a heavy offensive workload without suffering steep drop-offs in performance.
VanVleet is making $25 million in the final year of his contract, and this fits quite well on the Cavs' books, as they need not make any further moves to fit in his contract in a potential sign-and-trade.
The 32-year-old's usage isn't that high, and he'll be the best defensive point guard Mitchell has had the pleasure of sharing the backcourt with. In the doomsday scenario in which Harden decides to leave the Cavs, having VanVleet as his replacement should help Cleveland avoid complete disaster.
With Watson ready to take on a larger role, and a potential Evan Mobley breakout always waiting in the wings, the Cavs should be alright on offense even in this scenario where they're losing Harden's 21 and eight every night.
But this is only a hypothetical scenario, and the Cavs should be working their backside off in securing Harden's services for next season and beyond.
Jedd Pagaduan is a certified Clippers and Gunners fan, which means he's a very sports-traumatized individual. He now writes about sports instead as a form of therapy.