Report: Rudy Gay agrees to three-year, $40 million extension with Kings

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The Sacramento Kings have started the season a surprising 6-4, and now they’ve gotten the decision they had to make this summer on Rudy Gay’s future out of the way. Yahoo’s Adrian Wojnarowski reports that Gay has agreed to a three-year, $40 million extension to stay in Sacramento:

The extension begins with the 2015-16 season, and includes a player option for the the 2017-18 season, sources told Yahoo Sports. The ability to exit the deal early gives Gay a chance to become a free agent in the summer of 2017, when he’ll be 31 and the market will be flush with the proceeds of the new $24 billion television package.

Gay’s agent, Alex Saratsis of Octagon, finalized the details of the deal with Sacramento management over the past several days, culminating with an agreement on Saturday night. The Kings have wanted to re-sign Gay for several months, and Gay decided to push forward with an agreement in recent days, deciding to bypass free agency in the summer.

Gay is making $19.3 million this season, the final year of his current contract. At just over $13 million per year, his new deal represents a discount. Gay is having a good season for the Kings, averaging 22.5 points, 6.8 rebounds and 3.5 assists per game.

The Kings’ cap space will take a hit with the deal, but they clearly value Gay as a long-term piece and want to lock him up now, in case he draws higher offers this summer as a free agent.