May 4th: The four year deal is now official, owner Leslie Alexander tells Jonathan Feigen of the Houston Chronicle (on Twitter).
March 7th: The Rockets and general manager Daryl Morey have reached a verbal agreement on the key details of a four-year contract extension for Morey, Alexander tells Mark Berman of FOX 26 Houston (Twitter link). Morey's current contract runs through 2013/14, so the new deal will lock him up for five years in total.
Jonathan Feigen of the Houston Chronicle reported last month that Alexander was pleased with the job Morey has done with the Rockets, and that the team intended to extend the GM beyond his current contract.
"We’ll re-up him," Alexander said at the time. "Daryl knows that I judge him all the time. I’ve told him. He’s not shy about it either. He just knows that’s the way I operate. Why wouldn’t I? The general manager is the one person in your organization you can really judge. He can make good moves or bad moves. This year, I think he’s made three terrific moves."
In addition to acquiring James Harden in the fall's blockbuster trade with the Thunder, Morey also signed Jeremy Lin and Omer Asik to three-year contracts that have looked like good values so far. Even after agreeing to a max extension with Harden, the club has also managed to retain significant financial flexibility, and should have room for a max free agent this summer.
Morey has been the Rockets' GM since May 2007. Although Houston hasn't earned a postseason berth since 2008/09, the team has had a winning record every season during Morey's tenure (260-196 overall), as he managed to rebuild the roster without bottoming out.