Sources: Harden to sign $81.5M deal with Clips

James Harden is declining his $36.3 million player option and intends to re-sign with the LA Clippers on a two-year, $81.5 million contract, sources told ESPN on Sunday.

The second year of Harden's deal has a player option and is partially guaranteed, sources told ESPN.

The agreement gives Harden a raise after the 11-time All-Star helped the Clippers exceed most preseason expectations by finishing fifth in the Western Conference while earning All-NBA third-team honors. Harden averaged 22.8 points, 8.7 assists, 5.8 rebounds and 1.5 steals, and he led the NBA with 129 step-back 3-pointers, according to GeniusIQ.

The Clippers also maintain the flexibility to add talent in the present and future with the deal, and they will have access to the $14.1 million non-tax mid-level exception. The Clippers also remain competitive with Harden and Kawhi Leonard together for this upcoming season, and it keeps both stars on a similar timeline, as Leonard has two years remaining on his contract.

"He's our No. 1 priority," Clippers president of basketball operations Lawrence Frank said of Harden on Wednesday. "We're super hopeful that James is here, and he's here for a long time. ... He can opt out, and hopefully we can do a deal that makes sense for both sides."

In his second season with LA, Harden helped the Clippers exceed preseason expectations, winning 50 games despite Leonard (knee) missing the first two-plus months of the season and Paul George departing in free agency during the offseason. It was the first time in the Leonard era in Los Angeles that the Clippers did not enter the season with expectations to contend.

The Clippers credited Harden with taking on a leadership role within the locker room and behind the scenes that helped set the tone for the season. Harden appeared in 79 games -- his most since 2016-17 -- and finished with the fifth-most minutes played in the league. He was the only player this past season with 1,500 points, 500 assists, 100 steals and 50 blocks.

He helped Ivica Zubac emerge as a force in the paint as the center, aided by 209 assists from Harden, averaged a career-high 16.8 points and 12.6 rebounds to go with 62.8% shooting from the field.