Rockets pick up Reed Sheppard's $14M fourth-year option

Nobody expected drama here, and Houston didn't provide any. The Rockets announced it on Friday afternoon, a few hours before tipoff in Dallas.

Will Guillory

@WillGuillory

The Rockets announced that they exercised the fourth-year option Reed Sheppard

The number is $14.04 million for 2027-28, up from the $11.11 million Sheppard is making this season. That's real money for a guy who still comes off the bench, but it's a bargain for the No. 3 overall pick in 2024 who has already proven he belongs. Turning it down was never on the table.

Varun Shankar

@ByVarunShankar

Rockets announce they picked up 4th year option for guard Reed Sheppard. An expected move for the third-year guard.

"Expected" is the right word, and Sheppard's 2nd season is the reason. He barely played as a rookie. Then Fred VanVleet tore his ACL, the backcourt opened up, and the Kentucky kid ran with it. He played all 82 games, averaged 13.5 points, 3.4 assists and 2.9 rebounds, shot.430/.394/.802 and finished 6th in Sixth Man of the Year voting. That's the kind of season that turns a lottery pick from a project into a piece of the plan.

Year 3 has started even better for Houston as a team. The Rockets are 5-0, and Sheppard has handed out at least 4 assists in every game he's played. The playmaking is the part that matters. Shooting was never the question with him. The question was whether he could run an offense, and so far he's answering it.

The problem is keeping him on the floor. Sheppard is out for Friday's game in Dallas with low back soreness, and it's already his second injury of the young season after a left knee bone bruise cost him a game. He's not the only one either. Marcus Smart is questionable with a left forearm strain, Alperen Sengun is questionable with his own back issue and Steven Adams is out with a calf strain. For a team trying to stay perfect, the guard rotation is suddenly a lot thinner than Ime Udoka would like.

Next up is a bigger contract. Sheppard can be extended off his rookie deal next summer, and he's headed for restricted free agency in 2028 if it doesn't happen. Houston has already locked up Amen Thompson and Tari Eason, so expect the same treatment for Sheppard if he stays healthy and keeps playing like this. Friday's option is just the warmup. The real negotiation is a year away, and every assist he racks up between now and then raises the price.