Rockets Exercise Reed Sheppard's Fourth Year Team Option

The Houston Rockets have been one of the most dominant teams to start the 2026 season as they have won five consecutive games to be 5-0 heading into their NBA Cup matchup against the Dallas Mavericks on Friday night.

While the start for the Rockets as a whole has been pretty solid, one player who has been up and down so far this year is Reed Sheppard, but despite that, Houston has shown faith in him as a player by exercising his fourth-year team option to keep him in town for the 2027-2028 campaign, when he will make $14.04 million and then become a free agent following that season.

For the Rockets, this is an interesting move because there were questions about where Sheppard would fall in the rotation throughout this season, but it does appear that they do want to keep him around for at least this year and next year before potentially extending him during free agency following the 2027 season.

Another element of this situation with Sheppard that important to remember is the fact that he was selected in the 2024 NBA Draft with the No. 3 overall pick in the first round, so as a result the Rockets are going to want to do everything they can to put him in a position to succeed before moving on.

With that said, let's take a look at how Sheppard has fared to start the 2026 season thus far in Houston.

Through five games, Sheppard is averaging 10.5 points, 2.8 rebounds, 4.8 assists, and 1.8 steals per game. In terms of efficiency, Sheppard has been decent while shooting 37.5 percent from the field, 28.1 percent from beyond the arc, and 100 percent from the free-throw line.

When looking at the numbers from Sheppard, it does appear that he has the ability to contribute as a scorer, playmaker, and at times on the perimeter defensively, but he does need to figure out a way to be able to be a lot more efficient with his scoring from the field and from three.

For Sheppard, being able to improve his efficiency this year is definitely doable if he is able to play more off-ball and take advantage of playmakers like Fred VanVleet and Alperen Sengun, who can both set up Sheppard with great catch-and-shoot situations to create more separation from the defense when coming off screens and cuts. Sheppard could also improve his shooting by simply gaining more confidence throughout the season.

Also, it is important to keep in mind the fact that Sheppard has been dealing with some injuries this season, which include a left knee injury that helped him out against the San Antonio Spurs on October 23rd, as well as a back injury that will keep him out of the lineup tonight against the Dallas Mavericks.

The injuries Sheppard has had so far this year do not appear to major injuries, but it is important to keep them in mind in case it is affecting his play on the court when he is available.

So, as Sheppard and the Rockets progress through this season, it will be interesting to see if Sheppard can elevate his play and earn himself a lucrative extension, whether that be for being a part of the rotation off the bench or if he could earn a spot in the starting lineup down the road if his play justifies that. Regardless of what happens, there is no doubt that this season is a critical one for Sheppard and the Rockets.

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