Rice had been with the Fort Wayne Mad Ants of the NBA D-League since November. In 14 games with the team, Rice averaged 12.7 points. Rice played in five games with the Wizards this season, scoring a total of 11 points on 20 percent shooting and and recording 0.4 assists in 8.6 minutes per game.
Rice, a second-round pick in the 2013 draft, was named MVP at this year's Summer League after scoring 25 points per game on 47 percent shooting and grabbing 7.8 rebounds per game. The 24-year-old reportedly exchanged words with coach Randy Wittman during a Nov. 7 loss to the Toronto Raptors.
The second season of Rice's contract was not fully guaranteed, but all contracts become guaranteed on Jan. 10. By cutting Rice before that date, the Wizards -- who reportedly had been looking to trade him -- will save money and space under the salary cap.