In an unexpected turn of events, the Rockets declined the final-year option on the initial NBA contract of Jae’Sean Tate, per Wednesday’s report by Shams Charania of The Athletic. As of late last week, the plan was to pick it up, per Jonathan Feigen of the Houston Chronicle.
The move will make Tate a restricted free agent. However, according to Charania, both Tate and the Rockets have interest in discussing a new contract once free agency opens on Thursday night.
The move could cut into Houston’s potential salary cap space in 2023, since Tate was projected to have a very low cap hold. However, the potential upside is that by allowing Tate to get his pay raise a year earlier and in a market where fewer rival teams have cap space, that could lead to friendlier overall terms and annual contract value for the Rockets, relative to what Tate might have secured a year from now.
Moreover, due to the Gilbert Arenas provision in the NBA’s collective bargaining deal, Tate cannot receive a starting salary higher than the non-taxpayer mid-level exception (NT-MLE) — which starts at roughly $10.5 million this offseason. Thus, his new deal certainly won’t break the bank from a cap perspective, and it’s possible (perhaps likely) that he may have received more than that on the 2023 market.
Nope. Tate still would've been restricted in 2023. This seems like a combination of (1) rewarding Tate early and (2) using a more tepid 2022 FA market to lock him up long-term on a slightly more team-friendly deal. https://t.co/Y3EQaOhQFd
— David Weiner (@BimaThug) June 29, 2022
Tate’s restricted status permits Houston to match any outside offer, though it sounds as if both sides plan to work quickly on a new deal that would prevent him from staying on the market for long. Houston currently has Early Bird contract rights on Tate, which will allow the Rockets to re-sign him for up to four years and roughly $50 million in total deal value.
Tate, who made the All-Rookie first team in 2020-21, has averaged 11.6 points (50.1% FG, 31.0% on 3-pointers), 5.4 rebounds, and 2.7 assists in 27.7 minutes per game over two seasons in Houston. The 26-year-old is one of the most valuable defensive players on the Rockets and a respected team leader, even at this early stage of his NBA career.
The Houston Rockets have declined forward Jae'Sean Tate's $1.8 million team option for next season, making him a restricted free agent, sources tell @TheAthletic @Stadium. Rockets and Tate have mutual interest in discussing new deal in free agency beginning Thursday night.
— Shams Charania (@ShamsCharania) June 29, 2022
