Rockets' Updated Salary Cap After Jabari Smith Jr.'s Rumored $122M Contract

The Houston Rockets are reportedly making a major commitment to a member of their young core.

Per ESPN's Shams Charania, Rockets forward Jabari Smith Jr. intends to sign a five-year, $122 million rookie contract extension that is fully guaranteed through the 2030-31 season.

Smith's new deal will be added to a Rockets salary cap that currently stands at $205.3 million for the 2025-26 season, per Spotrac.

The No. 3 pick in the 2022 NBA draft, Smith was set to enter the final year of his rookie contract in 2025-26. He was set to make a salary of $12.4 million.

ESPN's Bobby Marks explained that Smith's new deal still gives Houston enough flexibility to sign star forward Kevin Durant to a contract extension:

Smith appeared in 57 games and made 39 starts this past season, averaging 12.2 points, 7.0 rebounds and 1.1 assists. His year was disrupted by a broken hand suffered in January, and he struggled to find consistency with his shooting upon his return. Still, he was a key wing defender for the Rockets as they finished second in the Western Conference with a 50-32 record.

Signing Smith to a contract extension continues a busy offseason for Houston, which made the biggest splash of the summer so far by acquiring Durant from the Phoenix Suns. The team also retained key veterans like center Steven Adams and point guard Fred VanVleet, and it signed head coach Ime Udoka to a contract extension.

The Rockets are hoping to contend for an NBA championship next season and beyond, and Smith will be a remain contributor for them for years to come following Sunday's extension.