With the deadline for signing an extension before the season rapidly approaching, Jalen Green became the seventh member of the 2021 NBA Draft class to sign a lucrative extension. The former second-overall pick has agreed to a three-year extension worth $106 million with the Houston Rockets as first reported by ESPN’s Shams Charania.
This is one of the more unique rookie extensions that we have seen in the NBA. He becomes the first NBA player to negotiate a two-plus-one rookie extension on a nine-figure deal. This means the first two years of the contract are guaranteed while the third falls as a player option. This is fairly common among veteran NBA players, but Green and the Rockets are the first to structure a contract like this at his age.
This is not the first time Green has taken a unique path as he was also the first player to take the G League Ignite route before making the NBA leap. After being selected with the second-overall pick, Green will be recognized as the highest-drafted Ignite member ever as the program has now been shut down.
Green joins Cade Cunningham, Evan Mobley, Scottie Barnes, Franz Wagner, Moses Moody, and Trey Murphy as the seventh member of the 2021 draft class to extend with the team that drafted him. Murphy officially agreed to his extension just a few hours earlier which you can read about here. Jalen Suggs and Corey Kispert each also agreed to extensions shortly before the deadline.
On the court, there have been some ups and downs for Jalen Green. He finished fourth in Rookie of the Year voting in the 2021-22 and averaged 17.3 points, 3.4 rebounds, and 2.6 assists per game. He took a stride forward in his second season averaging 22.1 points, 3.7 rebounds, and 3.7 assists. He then took a step back in production in his third season and averaged 19.6 points, 5.2 rebounds, and 3.5 assists. Green also has shot just 33.7% on three-point attempts while launching 7.2 long-range shots per game throughout his three-year career.
While the stats have been a bit erratic, Jalen Green closed last season playing the best basketball of his NBA career. He was a key part in leading the Rockets on an 11-game win streak in March during which he averaged 30.2 points per game on 50% shooting from the field and 45% on three-point attempts. He looked to take a significant step forward in his processing of the game and made the right reads at a more consistent level than has been the case for most of his career.
What this means for the Rockets moving forward:
This contract feels a bit of a hopeful belief that the level of play Green flashed to close the season is sustainable without fully investing in the young guard. It should be looked at as a win-win for both sides for the time being, but also evidence that there are some major decisions on the horizon in Houston.
Green will be thrilled to sign the deal as he is provided with a significant increase in pay and the opportunity to opt-out for another lucrative deal at the age of 25. The 2021-22 All-Rookie team member will have the opportunity to earn more than $240 million over the next five years and will be extension-eligible again in October 2026.
This deal provides him the opportunity to earn a full-scale max deal toward the end of this extension. Based on the expected 10% cap growth and 140% first-year salary increase if he is to opt out of the player option and sign an extension, Green has a pathway to inking a four-year $210 million deal when the time comes.
For Houston, this contract comes at a below-max annual salary range without souring the relationship. His cap figure will hover around roughly 20% of the salary cap and give some more time to identify how important of a future piece of the franchise Green truly is.
Looking at the Rockets roster- Reed Sheppard, Amen Thompson, Cam Whitmore, Tari Eason, Jabari Smith Jr, and Alperen Şengün are each highly regarded young players who have been in the NBA for three years or less. The franchise will be forced to make some tough decisions about who will be a key part of their future. There is only so much money and so many minutes on the floor to go around.
The most fascinating crossroads the Rockets will soon have to cross is what to do with Alperen Şengün. The Turkish big man is coming off a season in which averaged 21.1 points, 9.3 rebounds, and 5.0 assists. He came in third place in the Most Improved Player voting.
Şengün has a throwback style of play that is not a fit for all rosters and you will hear mixed opinions on if it is a fit alongside Jalen Green. In theory, the Rockets can still give Şengün an extension even following this Green deal. He is entering the final year of his contract and is set to be a restricted-free agent next summer. Houston would have to keep his $16.3 million restricted cap hold and also decline Fred VanVleet’s team option for this to occur if they hold negotiations off until next summer.
Update: The Rockets and Alperen Şengün agreed to a five-year $185 million extension per ESPN’s Bobby Marks just before the 6 PM EST deadline.
It also is fair to asses that the Rockets may be positioning themselves for more flexibility and trade options moving forward. The salary matching option for a contract is an important hurdle as you must have the designated contracts to trade in addition to the talent level opposing teams desire. More evidence of this is the Rockets’ recent trade with the Nets that involved nothing more than shuffling around draft picks and allowing Brooklyn to regain control of their selections.
For the short term, Jalen Green will celebrate a massive contract extension and attempt to play himself into an even larger dollar figure moving forward.
In the long-term, there are going to be some very difficult decisions made regarding the Rockets’ young core as some intriguing young talent will be forced out at some point down the line.
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