Fred VanVleet bet on himself again. And this time, he is cashing in. VanVleet signed a whopping three-year, $130 million contract with the Houston Rockets in NBA free agency.

The former Toronto Raptors guard's story is truly remarkable. He went from being undrafted to now becoming one of the highest-paid players in the NBA. He went from earning just over $500,000 in his first year with the Raptors in 2015-16 to cashing in nearly $43 million a season with his latest deal with the Rockets.

A lot of people were shocked when they saw the figures attached to VanVleet's contract. Some expressed their respect and elation for VanVleet getting the bag that now ranks him among the top 20 earners in the NBA. Others said the Rockets massively overpaid the 29-year-old, who probably isn't even one of the 30 best players in the NBA.

Needless to say, VanVleet's contract drew mixed reactions across NBA social media. There is definitely a lot to unpack with his new deal. With that, let us grade Fred VanVleet's three-year, $130 million contract with the Rockets in NBA free agency.

Fred VanVleet Rockets contract grade: B

On surface level, this really is a massive overpay on the part of Houston. At the end of the day, VanVleet still isn't one of the premier stars in the NBA. Yet, he is going to receive superstar-level money. Nonetheless, you can't fault VanVleet at all for chasing the bag despite going to a situation that isn't really going to give him the best chance to win.

Nonetheless, from the perspective of the Rockets, if you really have the means to pay more than what the free agency market was willing, then by all means. That's the same thing they did by overpaying former Memphis Grizzlies wing Dillon Brooks to a four-year, $80 million contract.

Signing VanVleet to this hefty deal indicates that Houston no longer wants to tank. They are ready to take the next step into becoming a competitive team in the Western Conference.

The Rockets secured the veteran point guard they have been searching for since the James Harden era ended in 2020. With the moves they made in free agency paired with hiring head coach Ime Udoka, Houston is surrounding its youth with veterans who can guide and help instill a winning mentality into the young guys.

VanVleet, who learned from a former Rocket in Kyle Lowry, is the perfect point guard to do that, considering everything he has gone through in the NBA. The 2019 NBA Champion should be a stabilizing figure for a Rockets team that has been quite tumultuous over its last few seasons without a veteran guard.

His presence should mean less playmaking duties for Jalen Green, which could further unlock his scoring potential. The kid is an absolute bucket. In fact, the up-and-coming star by far leads the 2021 draft class with the most 30-point games.

VanVleet's signing, however, indicates that the Rockets' 4th overall pick Amen Thompson will likely not start to begin his NBA career. Thompson functions primarily as a big playmaking guard. But his 6-foot-7 frame would also allow him to play on the wings while VanVleet takes over the primary ball handling duties for now.

Thompson can begin his career by learning and running the second unit. He can eventually take the reigns in three years, when VanVleet's contract is up.

An NBA champion and one-time All-Star, VanVleet is definitely a player the Rockets need, considering the direction they are heading in. But they are paying superstar money to a non-superstar, which bumps down the grade of his new contract.