NBA free agency grades: Hawks, Rockets make early splashes

NBA free agency is underway, and teams are adding stars and making moves to fill their rosters for the 2025-26 season.

Among the most impactful signings so far: Jaren Jackson Jr.'s max extension with the Memphis Grizzlies, James Harden's new two-year deal with the LA Clippers and the $52.6 million player option for LeBron James with the Los Angeles Lakers.

As more deals get reported, we're grading the moves and examining what each means for the 2025-26 season and beyond.

MORE: Trade grades | Offseason news and buzz

June 30: JJJ gets massive extension with Memphis, Aldama returns

Grades

Jackson: Pass (extensions graded on pass/fail) Aldama: B-

As part of what already has been a busy offseason and presumably isn't finished yet, the Grizzlies struck a pair of new deals with current players in the opening hours of free agency on Thursday.

Getting Jackson signed was the more pressing business for Memphis. Based on Jackson's existing $23.4 million salary in the final season of his contract, the Grizzlies could add a maximum of $147 million over four years on an extension after he fell short of qualifying for a supermax extension player with All-NBA honors. (Jackson was 17th in the voting, 13 points shy of making the third team.)

Using cap space to renegotiate Jackson's 2025-26 salary upward allowed Memphis to make a more competitive extension offer. This structure presumably adds $10 million to Jackson's current contract, allowing his starting salary to bump up to $46 million or so in 2026-27. That's still shy of the max Jackson could have made as an unrestricted free agent next summer ($50 million, based on the NBA's updated projection of a 7% cap increase), but getting more money now helps make up that difference.

All told, Jackson is adding $217 million in new money, as compared to the projected $219 million other teams could have offered on a four-max in 2026 free agency. Locking in the security of a massive deal now in a place Jackson wants to play is probably worth the modest difference.

From the Grizzlies' perspective, this is still a huge win. They take the potential of Jackson leaving in free agency off the table, as well as the possibility of him qualifying for the supermax by making All-NBA next season. Creating cap space did cost Memphis a first-round pick to move Marcus Smart for expiring contracts at the deadline, but I'd say that gamble paid off.

Technically, the Grizzlies don't yet have the cap room necessary to complete this deal. ESPN's Shams Charania reported that Memphis does not need to make a trade, suggesting the team will waive players and stretch their salary if no deal materializes before then. Doing so with reserve forward John Konchar wouldn't create quite enough space, so the Grizzlies are probably looking at letting newly acquired guard Cole Anthony go. If stretched, Anthony would count $5.2 million against Memphis' cap through 2029-30.

Trading a player or stretching their salary is necessary to allow the Grizzlies to retain full Bird rights for Aldama, who averaged career highs in points (12.5), rebounds (6.4) and assists (2.9) per game in the final season of his rookie contract. Still just 24, Aldama figures to remain a key part of Memphis' rotation through the life of his contract.

Given the limited amount of cap space available this summer and Aldama's modest qualifying offer ($5.9 million), it's possible the Grizzlies could have squeezed him more on this deal. Aldama will make far more than the $44 million that is the most other teams could have offered over this span using the non-taxpayer midlevel exception.

The upside for Memphis is getting to structure Aldama's contract in a favorable manner. I'd guess his contract will start at its highest point before descending, allowing the Grizzlies to stuff as much salary as possible on their books for this season. Memphis is nowhere near the luxury-tax line and has plenty of flexibility to use its $8.8 million room exception to add a contributor. The Grizzlies have been linked to Cleveland Cavaliers guard Ty Jerome, an unrestricted free agent.

June 30: Hawks land Alexander-Walker and Kennard

Grades

Alexander-Walker: A- Kennard: B

The market for Alexander-Walker, already likely to be robust, surely benefited from the way the postseason played out. Having multiple point-of-attack defenders proved crucial in the late rounds of the playoffs because of the way teams utilized full-court, on-ball pressure. And if those defenders can make 3s, all the better.

Alexander-Walker also helped his own cause with a strong series against the Oklahoma City Thunder in the Western Conference finals, combining for 52 points across Games 2 to 4 of the series on 19-of-32 shooting. Those performances helped assure Alexander-Walker would be out of Minnesota's price range unless the Timberwolves were willing to let either Naz Reid or Julius Randle walk, making Alexander-Walker gettable as well as coveted.

Ultimately, the Hawks utilized the $25 million trade exception they created in last summer's Dejounte Murray trade to offer Alexander-Walker ever so slightly more than the non-taxpayer midlevel exception, which topped out at $60.6 million over four years. Per ESPN's Shams Charania, Atlanta will send a 2027 Cleveland second-round draft pick and cash to Minnesota to complete the deal.

That continues a strong offseason for the Hawks under first-year general manager Onsi Saleh. Atlanta previously added Kristaps Porzingis in a three-team trade that has yet to have officially been completed as well as a valuable 2025 first-round pick in a draft-night deal.

Alexander-Walker slides into the rotation spot vacated by Caris LeVert, who agreed Monday to sign with the Detroit Pistons on a similar two-year deal. Alexander-Walker is four years younger, making him a better fit for Atlanta's timetable. He also is capable of playing some point guard alongside Dyson Daniels, giving the Hawks a fearsome defensive backcourt when starter Trae Young is on the bench.

Later Monday, Atlanta continued building its depth by adding Kennard on a one-year deal for $11 million. A 44% career 3-point shooter, Kennard led the league in accuracy in both 2021-22 and 2022-23. The Hawks now go four deep in the backcourt and are probably close to complete with their offseason moves.

Before the dust settles, it's tough to say exactly where Atlanta ranks in the Eastern Conference. If Porzingis can stay on the court much of the season, however, the Hawks look well-positioned to avoid the play-in tournament for the first time since reaching the 2021 East finals. And although the San Antonio Spurs own swap rights on Atlanta's first-round pick, the draft-night trade means the Hawks have a chance at lottery luck too.

June 30: Brook Lopez heads to Clippers on two-year deal

Grade: A

While we were all thinking about Lopez signing with the other Los Angeles team, he makes a lot of sense for the Clippers as well -- particularly at a contract that's appropriate for a backup center.

For all their vaunted depth, the Clippers struggled last season when starter Ivica Zubac was on the bench. Lineups without Zubac were outscored by 5.5 points per 100 possessions, according to Cleaning the Glass, ranking in the 22nd percentile leaguewide in offensive rating.

Compared to Mo Bamba, Zubac's backup to start 2024-25, Lopez is a far more credible shooting threat. "Splash Mountain" has made at least 130 3-pointers each of the past three seasons. Lopez is also an occasional post-up threat against switches, something the Clippers could utilize given Zubac posted-up more often than any player besides Nikola Jokic last season, per GeniusIQ tracking.

Lopez will be an upgrade at the defensive end too, giving the Clippers 48 minutes of quality rim protection. Opponents shot 59% on attempts inside five feet with Lopez as a primary defender, per GeniusIQ tracking on NBA Advanced Stats, not far off the 57% they shot against Zubac.

The only concern here is that Lopez is 37. Given his strengths (size and shooting) tend to age better than any other skills, I'm not worried about a two-year contract for Lopez. Whatever aging risk exists is justified by the reward of getting a player who started all 80 games last season for less than $10 million per year.

June 30: Jerome headed to Memphis on a three-year deal

• Agreed to a reported three-year, $28 million contract with guard Ty Jerome

Grade: A-

I had Jerome at the top of the tier of low-end starters and quality reserves available in free agency this summer, ranking him 15th overall. Jerome was a finalist for Sixth Man of the Year with the Cleveland Cavaliers, finishing third in the voting after averaging a career-high 12.5 PPG while shooting 52% from the field and 44% on 3s. For the Grizzlies to get him using their room midlevel exception is a coup.

Admittedly, some of the luster came off Jerome's season during an ugly series against the Indiana Pacers. Jerome shot a combined 2-for-22 in Games 2 and 3 as the Pacers upset the Cavaliers, while also becoming a target for Indiana on defense. Still, Jerome making less than $10 million per year is an overcorrection.

Jerome's market was hurt in part by Cleveland's tax situation. Already over the second luxury-tax apron entering free agency, the Cavaliers couldn't bring back both Jerome and Sam Merrill without paying an exorbitant tax bill. Cleveland ended up with Merrill, who will make slightly less annually on a four-year deal.

The Grizzlies need depth at point guard because of the time Ja Morant tends to miss, and with Cole Anthony reportedly headed elsewhere to create cap space, Jerome and Scotty Pippen Jr. give Memphis plenty of cover. Jerome can also play shooting guard, where the Grizzlies traded starter Desmond Bane in a deal that returned forward Kentavious Caldwell-Pope.

Deep benches have been a hallmark of Memphis' recent run. Adding Jerome should help ensure that continues.

June 30: Pelicans sign Looney to two-year deal

• New Orleans Pelicans agreed to a reported two-year, $16 million contract with center Kevon Looney

Grade: D

Though it's early in the New Orleans Pelicans tenure of executive vice president of basketball operations Joe Dumars and senior vice president of basketball operations Troy Weaver, familiar patterns from their separate stints with the Detroit Pistons are emerging.

In particular, like the Pistons under Weaver, the Pelicans have stockpiled centers without regard to maximizing value. Days after giving up a valuable first-round pick (the better of those from New Orleans and the Milwaukee Bucks next year) to move up to the No. 13 spot and draft Maryland center Derik Queen, the Pelicans made Looney their marquee addition of free agency.

It's undoubtedly true that center was a weakness for New Orleans, which utilized rookies Yves Missi and Karlo Matkovic at the position most of last season. Only the Phoenix Suns' center rotation rated worse by my wins above replacement player (WARP) metric. However, Missi and Matkovic showed progress, and at ages 21 and 24 respectively, they figured to improve.

Now, the Pelicans have spent much of their limited resources addressing center without finding a clear upgrade. Looney is a reliable veteran with championship experience, but he averaged just 15 MPG last season for the Golden State Warriors. Looney made more sense as a minimum signing than for a substantial portion of the non-taxpayer midlevel exception. He's also a non-shooter, making Looney a difficult fit next to Zion Williamson in the frontcourt.

Dipping into the non-tax midlevel means New Orleans is now hard-capped at the lower luxury-tax apron. It was unlikely the Pelicans would push into the tax anyway, having never before paid it, but that leaves them with just $5 million in wiggle room to fill a remaining roster spot and make moves during the season. For the right addition, that restriction would have made sense. I don't think Looney was the correct target for New Orleans.

June 30: Jones to Orlando on a one-year deal

Grade: B+

After upgrading at shooting guard by dealing four first-round picks for Desmond Bane, the Magic addressed their point guard spot too, signing the veteran Jones to a one-year deal. Jones projects as part of Orlando's second unit alongside 2023 lottery pick Anthony Black, playing a similar role to the one Cory Joseph played last season.

Compared to Joseph, who ended up starting all five Magic playoff games with starter Jalen Suggs injured, Jones is more of an offensive threat. Granted, that bar is set low. Joseph had a 13% usage rate and averaged just 4.2 assists per 36 minutes as something of a caretaker point guard for Orlando, which relied on forwards Paolo Banchero and Franz Wagner for playmaking.

Jones brings better 3-point shooting (38% career) and shot creation, meaning the Magic will be in better hands if Suggs again misses time. Jones started 124 games over the last two seasons, though he is probably better suited for a high-end backup role.

Having sacrificed money in favor of a starting job on a one-year, minimum deal with the Phoenix Suns last summer, Jones is getting paid more this time around -- nearly double the veteran's minimum. Paying him $7 million using the non-taxpayer midlevel exception will take Orlando into the luxury tax, though the Magic still have enough room under the lower tax apron (about $7.5 million) to use more of the exception to fill out the roster if needed.

June 30: Finney-Smith chooses Rockets

Grade: A

The Rockets adding one of the best free agents to change teams after dealing for Kevin Durant to begin the offseason reminds me of summer 2017.

That year, Houston added Chris Paul via opt-in and trade and structured the deal to have the non-taxpayer midlevel exception available to sign P.J. Tucker -- like Finney-Smith, an experienced 3-and-D role player. Tucker ended up starting as the Rockets won 65 games and took the defending champion Golden State Warriors to seven games in the conference finals.

Finney-Smith helps Houston fill the void left by trading defensive stopper Dillon Brooks to the Phoenix Suns in the Durant deal. As compared to Brooks, whose three most frequent half-court matchups defensively included a center (Victor Wembanyama) and a point guard (Shai Gilgeous-Alexander) according to GeniusIQ tracking, Finney-Smith isn't quite as versatile.

At this stage of his career, having Finney-Smith guard forwards is probably preferable to putting him on quicker guards. The Rockets can supplement Finney-Smith with All-Defensive first-team pick Amen Thompson, who proved to be one of the NBA's best point-of-attack defenders last season.

Offensively, Finney-Smith fits better alongside Durant than Brooks would have in a different construction of the trade. With shot creation at four positions in the starting five (Durant, Thompson, All-Star center Alperen Sengun and point guard Fred VanVleet), Houston primarily needs floor spacing from the fifth spot in the lineup. Finney-Smith, a 38% 3-point shooter over the past six seasons who hit 41% beyond the arc last season, provides more of that than Brooks. Although Brooks shot a career-high 40% on 3s in 2024-25, he's at 35.5% for his career.

There is some risk here that a four-year contract for Finney-Smith becomes a negative value by the end. That didn't prove the case with Tucker, who ended up helping the Milwaukee Bucks to the 2021 title in the final season of his four-year deal. Still, locking in more guaranteed money helps explain why Finney-Smith declined a 2025-26 player option for $15.4 million that would have paid more than his new average salary.

On the plus side, the Rockets getting Finney-Smith for less than the entire value of the non-taxpayer midlevel exception could make it easier for them to avoid paying the luxury tax this season. If Finney-Smith's contract features 5% raises, Houston should end up about $3 million over the tax line, meaning moving Cam Whitmore or multiple minimum contracts midseason could allow the Rockets to dodge the tax.

Whether Houston pays the tax is trivial this year but could have important implications down the road in terms of starting the clock on the repeater tax.

For now, adding Finney-Smith gives the Rockets a rock-solid top seven that also includes forwards Jabari Smith Jr. (who struck a five-year rookie extension on Sunday) and Tari Eason. Houston supplements that group with center Steven Adams, a key contributor in double-big lineups in the playoffs and recent first-round picks Whitmore and Reed Sheppard. The Rockets also intend to re-sign their own free agents in Jeff Green, Aaron Holiday and Jae'Sean Tate, per ESPN's Shams Charania.

All of that means Houston appears to have pulled off the rare feat of upgrading star talent with Durant while not sacrificing any depth. The Rockets are ideally suited to handle any time Durant will likely miss during the regular season and still rack up wins. So long as the Oklahoma City Thunder are healthy, the defending champs are rightfully the favorites to win it all again. As in 2018, however, I think Houston is the biggest threat to a repeat title for the Thunder.

June 30: Lakers add LaRavia after losing Finney-Smith

Grade: B+

I like LaRavia as a target for the Lakers, with the important caveat that they still must figure out who starts at center.

A first-round pick by the Memphis Grizzlies in 2022, he saw the team decline his rookie contract option for 2025-26 before the start of last season. Subsequently, LaRavia enjoyed the best season of his career, shooting 42% on 3-pointers and boosting his true shooting percentage from .538 his first two years to .591.

Although the Grizzlies traded LaRavia to the Sacramento Kings at the deadline, the declined option continued to restrict the Kings' ability to re-sign him. Sacramento was able to offer a maximum of $5.6 million, the value of that option, to LaRavia this season. The Lakers more or less matched that salary on a two-year deal.

For the Lakers, the best part of adding LaRavia is his age. At 23, he is still coming into his own as a contributor; and if this is a straight two-year deal, the Lakers would be able to re-sign him using early Bird rights in the summer of 2027, when he'll be 25.

Based on LaRavia's age and production, my SCHOENE projection system has him forecast just outside the top 20 free agents. If that's remotely accurate, $6 million per year should be a bargain. Because LaRavia's contract is too big for the biannual exception, it likely will have to come out of the Lakers' $14.1 million non-taxpayer midlevel exception. That leaves the Lakers with about $8 million to spend, most likely on a center.

Splitting the midlevel would help the Lakers' depth more than committing it all to a single player, which would leave them with the same number of reliable rotation players after seeing Dorian Finney-Smith strike an agreement with the Houston Rockets earlier Monday.

June 30: Mavs fill PG need with Russell deal

Grade: B+

From a value standpoint, it's hard to argue this move. Russell made an average of $18 million over the past two seasons and was on a max deal before that. Russell actually will make less in 2025-26 on this contract, which utilizes the taxpayer midlevel exception, than he did in the last year of his rookie deal.

Of course, Russell's salary trending the wrong direction also reflects the difficulty of finding the right fit for his skill set. Russell is a high-volume shot creator (24% usage last season) who only scored with high efficiency during two seasons with the Los Angeles Lakers. Russell isn't effective playing primarily off the ball and no longer fits on a rebuilding team at age 29.

All of that made Dallas an ideal destination. The Mavericks sputtered in the play-in tournament in part because they lacked an initiator with Kyrie Irving sidelined after a left ACL tear that should keep him out much of the 2025-26 campaign. Dallas started lineups with no true point guard down the stretch, relying on forward Naji Marshall to bring up the ball.

The Mavericks certainly weren't going to do better in terms of pedigree than Russell, armed only with their taxpayer midlevel. (To even utilize that, Dallas had to agree to a multiyear deal with Irving that pays him less than a player option would have for 2025-26.) If the Mavericks catch Russell on one of the hot stretches he enjoyed with the Lakers, this could prove an enormous bargain.

At the same time, there's always an expiration date with Russell. His limitations were exposed during two playoff runs with the Lakers, as Russell shot just 31% on 3s and was targeted defensively. The ideal scenario for Dallas is probably Russell carrying the team through the regular season before Irving returns in time for a playoff run.

If Russell is able to rebuild his value, he'll likely decline a 2026-27 player option in favor of a stronger market in free agency while the Mavs move forward with Irving. So, there's a chance this is a mutually beneficial short-term marriage.

June 30: Clippers re-sign Batum to two-year deal

Grade: A

Both sides got a little something out of Batum declining his $4.9 million player option in favor of re-signing with the Clippers. Batum gets a slight raise this season, the 20% maximum the Clippers could offer using non-Bird rights without having to dip into their non-taxpayer midlevel exception.

Meanwhile, the Clippers get a team option on Batum for 2026-27 that will give them some flexibility with how to handle next summer. The Clippers could have cap space if James Harden declines his 2026-27 player option. Alternatively, if the Clippers stay over the cap, they could exercise Batum's salary and use him as matching salary in a trade.

Most likely, that would happen only if Batum decided to retire and got a golden parachute from the Clippers. He'll turn 37 in December but remains a key reserve who averaged 24.6 MPG for the Clippers in their seven-game first-round series against the Denver Nuggets. Batum's experience, shooting ability and defensive versatility will be valuable right up to when he calls it a career.

The Clippers now have all eight players who saw at least 50 minutes of action against Denver under contract and will be filling in around them, presumably with another ball handler or a backup center.

June 30: Harden, Clippers strike new two-year deal

Grade: B-

The Clippers and Harden struck a creative contract, but I'm surprised he commanded a raise in this free agent market, even coming off an All-NBA season.

The 2025-26 player option on the contract Harden signed as an unrestricted free agent last summer was scheduled to pay him $36.3 million. Only the Brooklyn Nets have the cap space to make Harden that kind of offer without a sign-and-trade deal, and a return to Brooklyn seemed implausible for any number of reasons.

Not only will Harden instead make a minimum of $39 million this season (assuming maximum 8% raises), but he also gets the benefit of an unorthodox player option for 2026-27. Per ESPN's Shams Charania, the player option is partially guaranteed, making the second season something of a mutual option.

To make that legal, Harden's 2025-26 salary must be guaranteed for the same percentage. Presumably, that salary will fully guarantee days or weeks after the contract is signed, similar to the deal J.R. Smith signed with the Cleveland Cavaliers in September 2015. The player option also gives Harden the right to approve any trade this season.

As with Smith, who declined his option after the Cavaliers won the 2016 title, the partial guarantee probably won't ultimately matter. Assuming Harden stays healthy and plays well during his age-36 season, either the Clippers will guarantee his 2026-27 salary or Harden will decline the player option and head into free agency next summer when more teams have cap space. A serious injury seems to be the only way Harden would exercise the option and be waived next summer.

The upside is that giving Harden a raise doesn't really take anything off the table for the Clippers. With 12 players under contract, including Drew Eubanks and Jordan Miller on non-guaranteed deals, the Clippers are about $22 million below the lower luxury tax apron. That allowed them to re-sign forward Nicolas Batum after he declined a $4.9 million player option and still use their $14.1 million non-taxpayer midlevel exception.

The Clippers should be able to add another contributor using the midlevel exception, perhaps either another ball handler or a more experienced backup center after the team drafted Yanic Konan Niederhauser with the No. 30 pick.

June 29: Rockets' Jabari Smith Jr. gets five-year extension

Grade: Pass (extensions graded on pass/fail)

Smith is the first 2022 first-round pick to agree on a rookie contract extension. As ESPN's Bobby Marks noted, that's unusual because max extensions like we expect to see for Orlando Magic forward Paolo Banchero and the Oklahoma City Thunder's duo of Chet Holmgren and Jalen Williams (barring discounts) are typically the quickest extensions to get done.

Per Marks, Isaiah Stewart's deal with the Detroit Pistons on July 11, 2023 -- five days after the conclusion of the negotiating moratorium period -- was the earliest non-max rookie extension in recent memory. The Rockets and Smith got a deal done before the moratorium period has even begun.

For Smith, this locks in life-changing money ahead of a season where his role is uncertain. A starter for the first 188 games he played for Houston, Smith lost his job to Amen Thompson while he was sidelined for over a month by a broken bone in his right hand. Even in 18 games as a reserve last season, Smith averaged 28 minutes per game. (He actually scored more off the bench by virtue of stronger efficiency.)

With the Rockets' deal for Kevin Durant and their ability to utilize the non-taxpayer midlevel exception, it's unclear what role Smith might play this season. He could fill the open spot in the starting lineup or get squeezed if Houston adds another forward in free agency. Either way, at 22, Smith is an important part of the Rockets' post-Durant future. We've yet to see Smith prove to be the kind of shot creator in the NBA that he was during the single season at Auburn which made him the No. 3 pick by Houston. In fact, his usage rate has dropped all three seasons to a career-low 16%. But Smith's combination of ability to space the floor (36% from 3-point range on almost six attempts per 36 minutes) and defensive versatility at 6-foot-11 gives him a floor of key rotation player on a contender.

The upside scenario is Smith continues his development and makes this contract a bargain for the Rockets. Smith is younger than more than a third of the players drafted this week, including first-round picks Walter Clayton Jr., Nique Clifford and Yanic Konan Niederhauser. This extension pays Smith less annually than Trey Murphy, who signed the most comparable extension last year (four years, $112 million).

The way Houston negotiated hard on Alperen Sengun's extension in particular has facilitated strengthening a contending core this season. The Rockets should have their non-taxpayer midlevel exception available to add to this group after dealing two starters (Dillon Brooks and Jalen Green) for Durant.

This extension didn't take nearly as long as ones for Green and Sengun, which were signed just before the deadline. Still, it could be similarly beneficial for Houston.

June 29: Randle stays with Wolves on three-year deal

Grade: B

Essentially, this contract functions as a two-year, $69 million extension for Randle on top of his $31 million player option for 2025-26. In fact, based on maximum possible 8% raises, Randle's cap hit may come out almost identical to that figure.

Getting Randle signed for three years gives Minnesota cost certainty about this core. The Timberwolves project right around the 2026-27 luxury-tax line without starting point guard Mike Conley Jr. under contract and will have more breathing room by 2027-28, when Donte DiVincenzo's contract expires and the cap figures to increase faster than year-to-year raises.

For now, Minnesota is probably just about done with its 2025-26 roster, which surely won't include hotly coveted unrestricted free agent Nickeil Alexander-Walker. After getting new contracts done with their other two key free agents, Randle and Naz Reid, Minnesota has just enough room to fill out the roster with minimum contracts -- possibly team options for forward Josh Minott and center Luka Garza -- and stay below the second apron.

Because the Timberwolves will be closer to the tax line with Rudy Gobert's salary decreasing in the first year of an extension, their tax bill will be more modest this season. Minnesota figures to start the season paying $20-30 million in taxes, with the ability to reduce that by trading away players at the end of the roster midseason.

Compared to the Reid contract, I like the value better here for the Timberwolves. Randle is a two-time All-Star who played at that level over the first two rounds of the playoffs before a disappointing series against the Oklahoma City Thunder in the conference finals. Randle didn't likely have a market at this level in free agency this summer but could have done better a year from now when many more teams will have cap space.

Making this a new contract rather than an extension allows the two sides to wipe out the incentives in Randle's current contract, meaning he's assured his full cap hit and unlikely incentives no longer affect Minnesota with regard to the luxury-tax apron.

June 29: LeBron picks up $52.6M option

Grade: N/A

At surface level, the explanation from ESPN's Shams Charania that James is exercising his 2025-26 player option while simultaneously contemplating his future with the Lakers is difficult to understand. If James might want to play elsewhere, why not become a free agent?

Because this year's market is largely devoid of cap space, the rebuilding Brooklyn Nets are the only team that could offer James anything approaching his $54.1 million max salary as a free agent. If James is somehow to change teams this summer, it will almost certainly be by trade.

A sign-and-trade would be possible if James were to decline his option, but that possibility is complicated by the fact that a team receiving a player via sign-and-trade is automatically hard-capped at the lower luxury-tax apron, limiting its moves to build out the roster. An opt-in and trade isn't subject to the same restrictions.

For example, hypothetically the Golden State Warriors could now trade Jimmy Butler III (starting a max extension) to the Lakers for James and Bronny James and neither team would face a hard cap of any kind, allowing the Warriors to re-sign restricted free agent Jonathan Kuminga.

Setting James' cap number does clarify the Lakers' options in free agency. Essentially, the team will be choosing between re-signing forward Dorian Finney-Smith (who plans to decline a $15.4 million player option in favor of a longer contract, per Charania) and using the $14.1 million non-taxpayer midlevel exception, presumably on a starting center. Going the latter route would hard-cap the Lakers at the lower apron and allow them to safely fill out the roster with minimum contracts while keeping a little wiggle room for in-season trades.

June 29: Portis back to Bucks on three-year deal

Grade: C-

Portis had to decide Sunday on a $13.4 million player option for 2025-26. Instead, he'll sign a new contract that should pay him a similar amount this season with two additional years at $30-plus million.

I'm surprised the market was that high on Portis, who was a finalist for the Sixth Man award in both 2022-23 and 2023-24 but has never rated that well by advanced stats. Portis was not nearly as efficient a scorer last season, when his accuracy on both 2s (51%) and 3s (36.5%) was his lowest since signing with Milwaukee in 2020. Additionally, Portis missed nearly the entire second half due to a 25-game suspension for violating the NBA's anti-drug policy.

To Portis' credit, he became coach Doc Rivers' most trusted option at center by the end of the Bucks' first-round loss to the Indiana Pacers. Portis played 44 minutes in Game 5, which went to overtime, and had a double-double of 14 points (albeit on 6-of-18 shooting) and 10 rebounds. With Brook Lopez an unrestricted free agent, Portis could be Milwaukee's starting center next year.

Though Portis' contract would be on the cheap side for a veteran starter, I suspect playing that role would expose him defensively. Opponents shot 69% on attempts inside 5 feet with Portis as a primary defender, per GeniusIQ tracking on NBA Advanced Stats, putting him in the bottom 25 among all players who defended at least three such shots per game. By contrast, opponents hit just 59% of those attempts against Lopez.

I'm also skeptical of how well Portis will hold his value over the life of this contract. He turned 30 in February and will be 33 by the final season of the deal, another player option. The quickness that has been a strength for Portis when defended by centers might not remain an advantage much longer.

Every dollar counts for the Bucks, who are $27.5 million below the first luxury tax apron with nine players under contract, including non-guaranteed salaries for AJ Green, Andre Jackson Jr. and Chris Livingston. If Milwaukee wants to use its non-taxpayer midlevel exception to re-sign unrestricted free agents Kevin Porter Jr. and/or Gary Trent Jr., it will have a difficult time re-signing Lopez due to the resulting hard cap.

If Portis wanted to exercise his player option, I would have welcomed him back and considered an extension down the road. Failing that, I probably would have preferred to let Portis test the market and focus on re-signing Lopez.

June 29: Jaylin Williams to sign new three-year deal with OKC

Grade: B+

This deal is the latest example of the Thunder trying to manage their contracts to spend as much money now to have more flexibility down the road when extensions kick in for starters Shai Gilgeous-Alexander, Chet Holmgren and Jalen Williams. Those deals are the remaining business for the defending champs, whose roster is full.

Because Oklahoma City held a $2.2 million team option for Jaylin Williams' 2025-26 salary, this essentially functions as a two-year extension for $22 million. By declining the team option and starting the contract now, the Thunder can maximize the amount of the total salary Williams gets this season.

Starting the deal at its highest point and declining from there would leave Oklahoma City just under the luxury-tax threshold after Saturday's trade sending 2024 first-round pick Dillon Jones to the Washington Wizards to clear a roster spot and save money. That presumes the Thunder pick up a $3 million team option on guard Ajay Mitchell, who is in a different situation because he will still be a restricted free agent next summer. Williams would have been unrestricted.

Although Williams wasn't part of the Thunder's rotation during the last two rounds of the playoffs, he has become a reliable option at center who took on an important role with starters Isaiah Hartenstein and Holmgren unavailable during much of the regular season.

Williams posted three triple-doubles in nine starts, averaging 10.0 points, 8.0 rebounds and 4.9 assists. He could become a rotation fixture down the road if Oklahoma City has to move on from Hartenstein, whose $28.5 million 2026-27 salary is a team option, for financial reasons.

June 28: Mitchell returns to Miami on two-year deal

• Agreed to re-sign guard Davion Mitchell to a reported two-year, $24 million deal

Grade: B

By virtue of reaching 2,000 minutes played last season and achieving "starter criteria," Mitchell was in a strong negotiating position as a restricted free agent.

Because of starter criteria, Mitchell's qualifying offer was $9.4 million -- second highest among restricted free agents, after Josh Giddey of the Chicago Bulls. Even if no market developed for Mitchell, playing 2025-26 for the qualifying offer and becoming an unrestricted free agent next summer was a legitimate possibility.

Instead, the two sides agreed on a deal that guarantees Mitchell more money but keeps him under contract for two years, which also means he can be included in a trade without having to consent.

Mitchell could still be a bargain if he keeps shooting like he did after joining the Heat at the trade deadline. Previously a 34% career 3-point shooter, Mitchell shot 45% from deep with Miami and 7-of-14 in the playoffs, earning a starting role and averaging 31.6 minutes per game after the trade.

Nicknamed "Off Night" for his effect on opposing guards, Mitchell has always been an elite point-of-attack defender, but his lack of offense limited him to a reserve role during three seasons with the Sacramento Kings, who traded him to reduce salary this time a year ago.

I'm hesitant to read too much into a sample of around 100 3-point attempts, but we've seen the Heat work wonders with non-shooters in the past. This deal gives Miami a couple more years to figure out whether Mitchell's progress is legit and whether he can be a starting guard going forward.

With Mitchell re-signed, the Heat are nearing the lower luxury-tax apron but still have the ability to go under the tax line by waiving forward Duncan Robinson. Presuming Robinson doesn't exercise an early termination option to test free agency, he'll be under contract for $19.9 million. However, just $9.9 million of Robinson's 2026-27 salary is guaranteed.

June 28: Merrill gets new deal with Cleveland

• Agreed to re-sign guard Sam Merrill to a reported four-year, $38 million contract

Grade: B

After totaling just 350 minutes over his first three NBA seasons played with three different teams, Merrill has become an important fixture on Cleveland's outstanding bench units of the past two seasons.

Always a premier shooter, Merrill has hit 39% of his career 3-point attempts and pushed his volume with the Cavaliers: 11.9 attempts per 36 minutes in 2023-24 and 9.5 last season. A better defender than he appears based on physical tools, Merrill maintained a key spot in the rotation with Darius Garland sidelined to start Cleveland's second-round playoff loss to the Indiana Pacers -- up until a neck strain sidelined him for the deciding Game 5.

Previously on a minimum contract, Merrill had earned a big raise. Given the Cavaliers were $10 million over the second luxury tax apron after Saturday's deal for Lonzo Ball with just 10 players under NBA contract, that surely meant choosing between Merrill and fellow bargain reserve Ty Jerome.

In all likelihood, Merrill's contract will come in lower than Jerome's. This deal starts around $8.5 million with maximum 8% raises, putting it around the value of the room midlevel exception and far less than the non-taxpayer midlevel exception that could be Jerome's market.

Going out four years with Merrill could have some risk. Because he was drafted at age 24 after serving a Latter-day Saints mission prior to his career at Utah State, Merrill recently turned 29 and this deal takes him well into his 30s. Merrill's shooting ability is unlikely to wane but his defense might become an issue at some point.

With Cleveland's second-apron limitations, replacing Merrill would have been difficult, and the team can plan for a two-year window of big spending before retrenching when several contracts expire after the 2026-27 campaign. In that context, signing Merrill for a smaller starting salary but a larger total amount probably made sense for the Cavaliers.

June 27: Timberwolves and Naz Reid agree to new deal

• Agreed to a reported five-year, $125 million contract with forward/center Naz Reid

Grade: C-

In what looked like a difficult market for free agents, Reid found leverage to get an incredibly favorable contract.

The Timberwolves now face a challenge to also re-sign starting forward Julius Randle (who, like Reid, holds a player option for 2025-26) and reserve guard Nickeil Alexander-Walker. Minnesota must make some choices about who to value, which started with paying Reid like a starting-caliber player over the span of his new contract.

That's interesting because only one other team (the Brooklyn Nets) could make a similar offer to Reid, and because there's not a clear path to him becoming a starter in the short term if the Timberwolves bring back Randle.

Unless the Nets were interested, Reid's market would presumably have been at the $14.1 million non-taxpayer midlevel exception. That would have carried a max value of $60.6 million over four years, far less than Minnesota offered. Reid also had the option of exercising his $15 million player option for 2025-26 and taking his chances next summer, which should have been viewed as a good outcome by the Timberwolves.

Assuming max 8% raises, Reid's salary for next season will bump up to $21.6 million. That leaves Minnesota about $33 million shy of the second luxury tax apron, including team options for forward Josh Minott and center Luka Garza. That could be enough to bring back Randle, whose 2025-26 option would carry a $31 million cap hit. Retaining Randle and Alexander-Walker, who should have a market near or at the non-tax midlevel, now seems impossible, barring a trade.

I understand the Timberwolves prioritizing the two big men after drafting guards Rob Dillingham and Terrence Shannon Jr. in last year's first round. Minnesota also has 2023 second-round pick Jaylen Clark, who flashed at the defensive end in his rookie season after missing all of 2023-24 due to injury.

Additionally, the Timberwolves are paying Reid through his prime years. He'll turn 26 in August and will be 30 at the end of this five-year contract. Still, I'm not convinced Reid is a starting-caliber player despite winning the Sixth Man award in 2023-24.

A bench role suits Reid because of his defensive limitations, which were exposed by playing center more last season after Minnesota traded Karl-Anthony Towns. Lineups with Reid at center allowed a 116.3 defensive rating last season, per Cleaning the Glass, as compared to 103.0 when he played power forward. That's worth keeping in mind if you're projecting Reid as Rudy Gobert's eventual replacement at center.

The advent of the second apron, plus steeper penalties for teams with large luxury tax bills, means overpaying key contributors is more costly than ever. Although Reid has been an indispensable part of the Timberwolves teams that have reached the past two conference finals, paying him like a starter is going to force them to sacrifice down the line. Given the market, I think Minnesota should have done better with this contract.

June 25: VanVleet to sign new $50 million deal with Houston

• Agreed to a reported two-year, $50 million contract with guard Fred VanVleet

Grade: A

This deal, which will replace a $44.9 million team option the Rockets held for VanVleet in 2025-26, is some combination of Houston using its leverage well and/or being willing to spend even bigger in the future.

It's certainly true that VanVleet would have had a tough time beating this offer on the open market. Only the Brooklyn Nets could even legally do so using cap space, meaning the Rockets' participation in a sign-and-trade would have been necessary for VanVleet to get more than the non-taxpayer midlevel exception to play for a contender as an unrestricted free agent.

Still, the same will be true for virtually any free agent of note, and it's unlikely other teams will get this kind of bargain. Consider that VanVleet will make less next season than Kyrie Irving, who will start the year rehabbing an ACL tear. Yes, Irving had the leverage of a player option for 2025-26 on his contract, but he still added more new money ($76 million over the two years beyond 2025-26) than VanVleet.

It's possible VanVleet could make up the difference now that he holds a player option for 2026-27. Houston is currently hard-capped at the second luxury-tax apron by virtue of aggregating salaries in the Kevin Durant trade. That restriction may not exist a year from now, which would allow the Rockets to potentially re-sign VanVleet to a bigger, longer deal in a summer where other teams will have ample cap space to pursue him.

For the time being, getting VanVleet around $20 million less than his option sets Houston up to have access to its non-taxpayer midlevel exception. In a market where only the Nets will likely have more to offer, that makes the Rockets a player for a big-time free agent to complement Durant and their young core.

Nickeil Alexander-Walker is the most obvious Houston target who would fit into a playoff rotation on the perimeter, having played that role for the Minnesota Timberwolves in back-to-back conference finals runs. Gary Trent Jr.'s shooting is another fit, while Ty Jerome would be a good value but might be duplicative of what the Rockets hope 2024 No. 3 pick Reed Sheppard will become.

Wherever Houston lands, the ability to access the full midlevel should help Houston replace the slight depth lost in the Durant trade and strengthen the Rockets as championship contenders.

June 24: Kyrie Irving declines player option

• Agreed to a reported three-year, $119 million extension with guard Kyrie Irving

Grade: B+

Irving had until the end of the day Tuesday to decide on a $43 million player option for 2025-26. Instead of exercising it, he declined it and will sign this extension, effectively adding two years and $76 million to his contract.

The Mavericks had a degree of leverage because the Brooklyn Nets' trade on Tuesday potentially means no other team could offer Irving as much money in free agency. (In practice, the rebuilding Nets bringing Irving back three years after dealing him to Dallas might be politely termed a long shot.)

At the same time, Irving could have picked up his option and targeted free agency next year, when it's possible he could have gotten a contract worth more annually -- and certainly a longer one. This seems like a fair compromise.

Reducing Irving's starting salary to around $37 million has important implications for the Mavericks this summer. That leaves them about $7 million from the second luxury-tax apron with 13 players under contract, not counting a team option for backup point guard Brandon Williams.

Had Irving picked up his option, Dallas would likely have been limited to offering minimum contracts, barring a money-saving trade. Now, the Mavericks could have access to the taxpayer midlevel to sign a ball handler as a free agent and fill the void left by Irving, who will be out much of 2025-26 after suffering an ACL tear in March.

June 23: Mavs' Gafford gets three-year extension

• Agreed to a reported three-year extension with center Daniel Gafford

Grade: Pass (extensions for non-free agents graded on a pass/fail basis)

The most interesting element of this extension is the timing. Conventional wisdom had it that Gafford could be a trade candidate this summer, given the Mavericks' crowded depth chart at center, where younger Dereck Lively II is the team's starter of the future and starting power forward Anthony Davis is also capable of -- and perhaps best suited for -- playing the 5.

There's little question that Gafford merits a raise coming off the best season of his NBA career. Having excelled defensively in a platoon with Lively as Dallas reached the 2024 NBA Finals, Gafford got a chance to play extended minutes between when Lively went down with a stress fracture in his right ankle in January and his own knee sprain in February.

During 11 full games in that span, Gafford averaged 15.0 PPG on 67% shooting, 10.3 RPG and 3.6 BPG, the last of which would have threatened Victor Wembanyama (3.8 BPG) for tops in the NBA. Typically just a finisher on offense, Gafford even created in the post with the team battling multiple injuries. His 52 post-ups last season was a career high, per GeniusIQ tracking, although Gafford's efficiency on those plays wasn't especially strong.

Besides the limitations on Gafford's role with the Mavericks, a trade now also makes sense because this could be the peak of his performance. Gafford will be 27 in October, and while his size won't fade, Gafford might not remain such a strong above-the-rim threat as he nears his 30s.

Based on those factors, it was important for Dallas to craft an extension with a maximum 20% raise in 2026-27 (a starting salary of $17.3 million) and 5% annual raises that fits restrictions on extend-and-trade deals. By virtue of apparently staying within that, the Mavericks can trade Gafford as soon as he signs the extension -- or, hypothetically, even before then.

Having Gafford under contract an additional three seasons shouldn't hurt his trade value at all. This extension pays him barely more than the expected 2026-27 non-taxpayer midlevel exception of $15.5 million, and Gafford has easily outpaced that in terms of value thus far. From his perspective, locking in his deal a year ahead of time does take injury risk off the table. So I'd consider this move a win-win.

The next question is which teams could be in the market for Gafford. He's an obvious fit for the Los Angeles Lakers, having demonstrated his comfort running pick-and-rolls with Luka Doncic, but that idea seems triggering for already aggrieved Dallas fans. Gafford would be a sensible target for the guard-heavy Phoenix Suns, though finding workable matching salary is a challenge unless the Suns get under the second apron.

If the New Orleans Pelicans aren't convinced Yves Missi is a starting-caliber center at this stage of his development, Gafford would be a huge offensive upgrade. I'd also consider a return to Gafford's original team, the Chicago Bulls, and the San Antonio Spurs as wild-card possibilities.

Of course, the Mavericks may just hold on to Gafford. After all, they spent much of the second half of last season with none of their three starting-caliber centers healthy, so there is value in having depth at the position. And it would be challenging for another would-be contender to offer the perimeter help Dallas seeks, meaning a Gafford trade would most likely need to involve at least three teams.

June 14: Rockets, Adams agree to three-year extension

• Agreed to a reported three-year, $39 million contract with Steven Adams

Grade: B

We're off and running on the 2025 offseason with games still to play in the NBA Finals. Teams aren't allowed to negotiate new contracts with their own free agents until the day after the Finals end, but they can strike extensions with eligible players in the last year of their contracts at any point up to June 30.

Acquired by the Rockets at the 2024 trade deadline while still recovering from season-ending PCL surgery, Adams initially served as a veteran mentor on a young team and a backup to All-Star center Alperen Sengun. His role expanded considerably in the playoffs, when lineups featuring both Adams and Sengun unexpectedly became key to Houston taking the Golden State Warriors the distance after falling behind 3-1 in the series.

Whether alongside Sengun or as the team's lone center, Adams reached a level in the playoffs that we haven't seen since early in his career. Adams blocked 1.9 shots per 36 minutes, surpassing his best regular-season mark (1.7). And his 60% shooting was way up from 55% during the 2024-25 regular season. My wins above replacement player metric rated Adams the team's fourth-most valuable player in the series, ahead of starters Dillon Brooks and Jalen Green.

Given that the size and strength that make Adams a dominant offensive rebounder aren't going anywhere, the kind of agility we saw against the Warriors will make him a valuable player for the Rockets as long as he stays healthy.

Before the PCL injury that cost him the 2023 playoffs and all of 2023-24, Adams had been remarkably durable, playing 76 of 82 games in 2021-22. And Houston will surely be careful with Adams' workload. Although Adams was cleared to play both ends of back-to-back games midway through last season, the Rockets continued to give him one of the games off because of how he recovers after playing the night before.

Bringing back Adams on a contract in the $13 million range -- a little less than the $14.1 million non-taxpayer midlevel that is the most other teams could have realistically offered -- does push Houston into the luxury tax if the team exercises Fred VanVleet's $44.9 million team option. And even if the Rockets waive two players with non-guaranteed deals (Jock Landale, at $8 million, and Nate Williams at the minimum), they'd edge over the lower luxury tax apron by filling out the roster in that scenario.

Alternatively, Houston could decline the option and try to bring back VanVleet at a smaller starting salary on a longer-term deal that would guarantee him more money at age 31. That decision could be influenced by what other moves the Rockets have cooking. Their tax situation makes it seem unlikely Houston will add a free agent making more than the $5.7 million taxpayer midlevel, but the Rockets could make more substantial moves via trade.

Per ESPN's Bobby Marks, Houston has until June 29 to decide on VanVleet's player option. Barring a blockbuster trade, VanVleet will almost certainly be back, meaning Adams' new contract gives the Rockets a chance to return the entire core that claimed the No. 2 seed in the West.