Jalen Green just signed one of the most unique contract extensions in NBA history

It didn't look like a deal would get done before the Oct. 21 deadline, but Jalen Green and the Houston Rockets agreed to a rookie extension deal almost at the buzzer on Monday, and it's one of the more unique rookie extension deals we've ever seen.

According to Shams Charania of ESPN, Green signed a three-year, $106 million contract extension with the Rockets, but the final year is a player option, meaning Green can decide whether or not to opt-in to that third year in summer of 2027. Charania said this is the first nine-figure two plus-one rookie extension in NBA history. Right now, it's a complete toss-up whether Green will opt into that third year or not.

There's a future in which Green explodes into one of the best scorers in the league and declines that player option for a bigger payday on the open market, and there's also a world where Green never fully blossoms and the Rockets feel stuck with his contract. Each world feels equally possible and we'll hopefully have a better idea of Green's true ceiling after the 2024-25 season.

This extension appears to be a win-win for both Jalen Green and the Houston Rockets

For Green, this is a fantastic move. He secures over $100 million and gives himself a potential out in 2027 when he will be 25 and perhaps just entering the prime of his career. Although first three years have been a bit of a roller coaster, Green has shown the Rockets front office enough promise to make them lock him down for a few years at a pretty high annual value.

For Houston, it's a smart middle-ground move. The Rockets didn't want to commit to Green for an extra four years, but with this contract they still guarantee themselves a few more seasons to see if he can grow into the high-level scorer he's on the precipice of becoming. The front office showed Green it believes in him but the shorter deal means it still wants Green to prove exactly who he is.

Getting this deal done also allows the Rockets to focus on extending Alperen Sengun next summer, when he becomes a restricted free agent. Only having to retain one of Green and Sengun next offseason takes some of the pressure off of general manager Rafael Stone who will likely be forced to give Sengun a max extension when the time comes.