Rockets sign Jalen Green to bold extension: instant reaction, analysis

The Houston Rockets just answered a massive question about their future. It’s official:

Jalen Green is part of it.

At least, he is for the next couple of seasons. Green signed a three-year, $106 million rookie extension, but the third year has a player option. This is imminently interesting.

Let’s break it down.

Green gambles on himself - and Rockets gamble on him

The player option is the intriguing part.

The Rockets have Green locked up for two seasons. At $35 million, he’ll be getting paid above his market value. Green has not produced like a $35 million-a-year player at this stage of his career.

That’s not to say that this is a bad deal. A two-year investment will not hamstring the Rockets. If Green opts out of the third year, it will mean that he’s taken the star leap, and the Rockets will move mountains to retain him.

If he accepts the option, the Rockets will likely look to move him shortly after. On an expiring deal, that shouldn’t be a problem. This is a cleverly structured deal on Rafael Stone’s part - which is becoming a signature move for him.

That's not to say this deal is flawless, either. Green has not been a $35 million-a-year player. Banking on a player's upside is always risky. Investing in proven production is safer. Put differently, I'm a bit confused, and it seems I'm not alone.

Ultimately, Green's future impact will determine the quality of the deal. At least the player option gives him incentive to improve. It also minimizes the Rockets’ long-term commitment to an unproven player. Now, the question becomes whether Green lives up to the dollar amount.

If he can, this deal can look like a bargain down the road.