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Rockets granted $12.5M disabled player exception for Fred VanVleet

What does this mean for Houston, and what are their options?

On Tuesday afternoon, Kelly Iko with Yahoo Sports announced that “the Houston Rockets were recently granted a $12.5 million Disabled Players Exemption for guard Fred VanVleet, who tore his right ACL prior to training camp, and despite the DPE (Disabled Player Exception), Houston is still hard-capped at the first apron.”

The Rockets expected Fred VanVleet to be their starting point guard, as he had been the previous two seasons. But in September, he tore his ACL, ending his season. Because of this, Ime Udoka, the head coach, had to be inventive with the lineup for 2025–2026. So far this season, Amen Thompson has started for Houston at point guard. Center Alperen Sengun leads the Rockets with 7.1 assists per game, and the team’s offense is much improved.

On October 27, the Rockets requested a disabled player exception as Fred VanVleet had finished his season. On Tuesday, December 16, NBA source Kelly Iko said that Houston has gotten a $12.5 million DPE for Fred VanVleet. According to Bobby Marks of ESPN, despite acquiring the DPE, the Rockets are still hard-capped at the first apron.

Prior to Houston’s trade to acquire Kevin Durant, Houston was linked to Giannis Antetokounmpo throughout the offseason. Antetokounmpo is not anticipated to be available to the Rockets this season, though.

Furthermore, Houston can only add players with veteran minimum contracts. With the squad they have put together, the team isn’t really flexible. In 2025–2026, Fred VanVleet’s $25 million salary was the Rockets’ third-highest. Additonally Fred Vanvleet, Jae’sean Tate, and Aaron Holiday all have implicit no trade clasues, which means they are extremely unlikely to be traded. The Rockets will continue to use the roster they built for 2025–2026 for the time being, as the group thinks they can compete in the West as currently constructed

Houston continues their long roadtrip with a game versus the New Orleans Pelicans on Thursday at Smoothie King Arena with a 7:00 tip-off time. You can watch the game on Space City Home Network or NBA League Pass. As always, be on the lookout for pre- and post-game content here at the Dreamshake.

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