Report: Rockets, Kevin Porter Jr. share mutual interest in contract extension

The Houston Rockets and starting point guard Kevin Porter Jr. have mutual interest in a potential contract extension this offseason, according to Monday’s update by Shams Charania of The Athletic.

Porter, who turned 22 years old earlier this offseason, is set to enter the fourth and final season (2022-23) of the rookie contract he signed after being selected in the first round of the 2019 NBA draft.

For the Rockets, the number to watch is $9.7 million. Houston’s plans to create massive salary cap space in the 2023 offseason are well known, and $9.7 million is the “cap hold” — if there’s no extension — to make Porter a restricted free agent in 2023 and potentially sign him on top of any external additions. Because the Rockets would have Bird rights on Porter, they could exceed the cap to do so, and Porter’s restricted status would allow the team to match any outside offer and still retain him.

However, if Porter is open to doing an extension in which the starting salary is at least comparable to that cap-hold figure, it could make sense for the Rockets to get the deal done early. There wouldn’t be much downside, since Porter’s cap hold at $9.7 million would likely be on the books, even if the team did nothing on the extension front.

Furthermore, there could be real upside, since it’s at least possible that a strong season by Porter in 2022-23 could boost his next contract to a much higher price point. For Rockets general manager Rafael Stone, it could conceivably be an opportunity to “buy low,” especially if Porter is willing to accept a team-friendly deal for the upside of getting his long-term financial security a year earlier than expected.

Sources: The Boston Celtics have offered a Jaylen Brown package to the Nets for Kevin Durant, which Brooklyn turned down and countered.

Full details on a potential Celtics-Nets mega-deal to be had, latest on Donovan Mitchell and more at the Inside Pass: https://t.co/Gkyfkhg5A1

— Shams Charania (@ShamsCharania) July 25, 2022

From Porter’s perspective, while he certainly could gamble on having a strong season and securing a more lucrative contract in a year, it would be perfectly understandable if he doesn’t want to pass up his first opportunity to land a guaranteed, long-term contract of significance.

Ultimately, for the team, it likely comes down to the dollar figure. If Porter is willing to take a first-year salary (in 2023-24, when any extension would kick in) near the $9.7 million cap hold, there’s not much downside to getting a deal done early and eliminating any risk of Porter potentially playing his way into a much larger contract with a strong season.

On the other hand, if Porter wants a significantly higher first-year number, it probably makes sense for the Rockets to wait. Houston could give him the same contract a year from now, but with significantly less stress on their financial flexibility, thanks to the lower cap hold.

A 6-foot-4 guard, Porter averaged 15.6 points (37.5% on 3-pointers), 6.2 assists, and 4.4 rebounds in 31.3 minutes last season.