If they desire, the Rockets will keep Chandler Parsons next season. That was always the case.
It will just cost them a little more now – by their choice.
The Rockets hold a $964,750 team option on Parsons for next season. If they exercise it, he’ll become an unrestricted free agent in 2015. If they decline it, he’ll become a restricted free agent this summer – i.e., getting a raise sooner but one Houston can match.
Adrian Wojnarowski of Yahoo Sports:
The Houston Rockets plan to decline the fourth-year option on forward Chandler Parsons’ contract, freeing him to become a restricted free agent this summer, league sources told Yahoo Sports.
Houston is determined to clear the necessary salary cap space this summer to chase a third maximum contract free agent to join Dwight Howard and James Harden, league sources tell Yahoo Sports.
Houston plans to pursue the major stars who could be available upon opting out of deals, including Miami’s LeBron James and Chris Bosh, and New York’s Carmelo Anthony, league sources said. Dallas’ Dirk Nowitzki is expected to be a target too.
We already knew the Rockets were interested in Kevin Love, an attainable target. But why not also put LeBron, Bosh, Melo and Nowitzki on the radar? Who wouldn’t want one of those players?
However, if the Rockets were intent on maximizing cap room, they would have just picked up Parsons’ option to ensure he’d count against the cap at $964,750.
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By Houston declining it and then extending a qualifying offer, Parsons will count against the cap at $2,875,130* until he signs either a contract or offer sheet. Then, he’ll count against the cap at his 2014-15 salary, which will surely be much higher.
*He earned a higher qualifying offer by meeting the starter criteria. That puts his qualifying offer equal to the rookie-scale amount for the No. 21 pick in the 2010 draft (not 2011, as previously noted). Though Parsons was drafted in 2011, the 2010 draft is used because players drafted in the first round in 2010 are finishing their contracts this season.
So, it seems the Rockets are more interested in a sign-and-trade.
I’d think a player of Parsons’ quality making less than $1 million, even if on an expiring contract and due a big raise the following year, would have high trade value. But to add salary in a trade – LeBron, Bosh, Melo, Nowitzki or Love wouldn’t come cheap – the Rockets would have to send out a comparable amount of salary. In that sense, a higher-paid Parsons could be more helpful.
This decision might say something about the low trade value of Omer Asik and Jeremy Lin, who will each count $8,374,646 against the cap next season while owed $14,898,938 in real money. Though that cap number could facilitate a sign-and-trade, teams might balk about actually paying so much in actual dollars.
Hence, Parsons – a better player than Asik and Lin – could become the preferred sign-and-trade option.
Of course, Parsons would have to go along with a sign-and-trade. He’s clearly fond of Houston, and he might not accommodate a deal that sends him elsewhere.
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That said, he should welcome making around $10 million rather than less than $1 million next season. Wherever Parsons plays in 2014-15, Houston is doing him a huge favor.
Personally, I would have exercised Parsons’ option and enjoyed the advantages of a good starter making so little money for an extra year. Then, once the contracts of Asik and Lin expire next summer, I would have tried to leverage Parsons’ tiny free agent amount into huge cap space and then gone over the cap to re-sign Parsons.
But Morey should know the Rockets’ current options better than I do. This could be the first step to something very big.
And if that backfires, Houston will at least safely lock up Parsons for several more years, though at a higher cost.