What happened: The 29-year-old guard entered free agency after three seasons in Houston. Holiday's contract includes an NBA out clause that can be exercised if a team meets the buyout conditions.

Why it matters: Fred Vanvleet's return and Reed Sheppard's emergence further reduced available minutes. Holiday's move ends Houston's run with a veteran reserve who made five starts across three seasons.

What to watch: Houston must settle its reserve-guard rotation before the 2026-27 season. Holiday's out clause leaves a path back to the NBA during the campaign.