Rockets’ Jalen Green gets unique $106 million contract extension after skepticism

The Houston Rockets and 2021 second overall pick Jalen Green have agreed to a three-year, $106 million rookie-scale contract extension, according to ESPN’s Shams Charania.

Green, 22, has been one of the faces of the Rockets organization since superstar James Harden was traded in 2021, and he has helped build the foundation of what the organization believes to be one of the better young cores in the entire league with Alperen Sengun, Jabari Smith Jr., and others. Initially, the belief was that Green wasn’t going to reach an agreement with Houston prior to the start of the 2024-25 season. That is no longer the case, as the emerging star is now under contract for the next few seasons.

What is unique about Green’s new deal with Houston is that he has become the first player in league history to negotiate a nine-figure rookie-scale extension that includes a player option in the third year of said contract. Aside from the commitment from the Rockets, Green now gets the opportunity to still capitalize on his potential by possibly opting out at the conclusion of the 2026-27 NBA season in order to seek a max-level contract.

Essentially, Green is creating opportunity for himself while also cashing in on his value right now. In addition to signing a three-year, $106 million extension that will hold an annual average value of $35.3 million, Green will be eligible to extend his contract in October 2026 and agree to at least a four-year, $227 million extension, according to ESPN’s Bobby Marks.

Green, who started in all 82 games for the Rockets last season, averaged 19.6 points and 5.2 rebounds per game while shooting 42.3 percent from the floor and 33.2 percent from three-point range. Despite the decrease in efficiency and scoring compared to the 2022-23 season, Green has shown clear growth since being drafted second overall, and he has solidified his spot as one of the focal points of this organization.

At the conclusion of the 2023-24 season, the Rockets held interest in negotiating a new deal with Green as he entered the final year of his rookie contract, league sources told reporters. Despite his name coming up in rumors ahead of the trade deadline last season, the Rockets are confident in Green’s ability to be a star for the foreseeable future.

After coming to terms with Green on a new extension, the big question surrounding Houston is whether or not they do the same with Alperen Sengun, who has also been one of the young faces of their team in recent seasons. Sengun was in the running for the 2023-24 NBA Most Improved Player before suffering a season-ending leg injury.

With Sengun out of the lineup, Green shined to close the 2023-24 season, averaging 24.6 points, 5.4 rebounds, and 4.2 assists in his final 17 games. Between his production, proven growth, and limitless potential, the Rockets made the swift decision to find common ground on a new contract extension that proves to Green that he is the focal point of this organization.

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