Free agency negotiations will open throughout the NBA on Tuesday night, June 30, and the 2026-27 league year officially begins in July.
With those inflection points in mind, the final days of June are often a hotbed for NBA rumors — both with free agents and trade candidates.
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So, with the Houston Rockets, it shouldn’t come as a surprise that a few rumors leaked over the weekend. First, from Jake Fischer and Marc Stein of The Stein Line:
The Rockets loom as a possible free agent destination for another one of Ime Udoka’s former players in Boston: Marcus Smart. League sources say that Smart, who is expected to draw interest from Houston and possibly other teams in free agency, is very much giving consideration to declining his $5.4 million player option for next season with the Lakers before Monday’s deadline to do so… and then proceed to the open market.
Smart, a 6-foot-3 guard, is coming off a strong playoff run with the Lakers in which he averaged 12.9 points (34.0% on 3-pointers), 5.1 assists, 3.5 rebounds, and 2.4 steals per game. The 32-year-old’s physical defense was a huge part of Los Angeles’ first-round series win over Udoka and the Rockets.
Meanwhile, a bigger rumor came courtesy of Michael Grange, a very respected and established reporter for Toronto-based Sportsnet. He writes:
There are mixed signals around the NBA on the subject of his availability (Kawhi Leonard) and the possibility of him being moved, with reports circulating that the two-time Finals MVP would be open to reuniting with his former teams, San Antonio and Toronto. Though the Houston Rockets could also be part of that mix, per one source.
One league source I spoke with said that the (Los Angeles) Clippers are absolutely not moving him, preferring to let the last year of his contract play out to preserve future flexibility, but still seeing Leonard, who turns 35 on Monday, as part of their future. Others say the opposite, maintaining that the relationship has run its course and that the Clippers largely would “like out of the Kawhi business” so much they aren’t thought to be driving a particularly hard bargain.
Leonard, 34, averaged 27.9 points (50.5% FG, 38.7% on 3-pointers), 6.4 rebounds, 3.6 assists, and 1.9 steals per game. The 6-foot-6 forward earned All-Star honors for a seventh time in his storied career.
To say the least, Smart would come at a cheaper cost. As a potential free agent (should he opt out), the Rockets could sign him without offering the Lakers any compensation.
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And because he is a role player, Smart would likely command a smaller salary-cap exception — perhaps the taxpayer mid-level or the biannual exception. His option year for the Lakers is at a relatively similar amount ($5.4 million), and playing in Texas would potentially offer tax savings, as well.
Smart would likely project as a key reserve for Udoka and the Rockets, who would benefit from his combination of strong defense, ball-handling, and a physical veteran presence.
In effect, it would be a relatively low-cost addition to fortify Houston’s depth.
In contrast to Smart, Leonard would presumably require a trade to obtain, since he remains under contract for another season with the Clippers (unless it is voided as part of an ongoing NBA investigation). His 2026-27 salary figure is $50.3 million, and even at 34, he remains one of the game’s best players.
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As a team above the salary cap, the Rockets would have to send out a comparable financial amount. They would also, of course, have to satisfy the Clippers from an asset perspective.
That would likely require some combination of younger players with upside and future draft equity, similar to when Los Angeles dealt James Harden to Cleveland in February for a package headlined by 26-year-old guard Darius Garland. It’s fair to question if such an aggressive move is worthwhile.
Then again, because the potential combination of Leonard and Kevin Durant could unite two All-NBA Second Team players, it might be worth it for Houston to take the risk. Conceivably, that pairing — even if older — could launch the Rockets closer to the top tier of the Western Conference following back-to-back years with 52 regular-season wins and a first-round playoff exit.
From the perspective of the Clippers, who no longer have as many proven players surrounding Leonard after the recent departures of Harden and Ivica Zubac, there could be incentive to consider a reboot. The general idea would be to prioritize the future ahead of the present.
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It’s also worth noting the Rockets do have a number of potentially expiring contracts on their 2026-27 books, which could be used to grease the financial wheels.
Finally, there’s Leonard’s perspective. With only one year until his current contract expires, perhaps the biggest domino is what he wants. After all, most teams probably wouldn’t want to trade for Leonard — particularly at a relatively advanced age — if they fear he might leave for no compensation in 2027 free agency.
So, would Leonard want a partnership with the Rockets and be willing to extend his contract with Houston? And how many other potential suitors would he do the same for? Those questions will heavily dictate his market, if one exists, and the answers remain to be seen.
All that said, it is still possible that the Clippers simply stay the course. Leonard is clearly comfortable there, and he remains an elite player and a future Hall of Famer.
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But should Los Angeles consider alternatives, it seems Houston could be viable. Stay tuned!
More: Report: Rockets taking ‘more of a wholesale approach’ to 2026 roster
