Houston is currently offering Terry a veteran minimum contract to return. The Pelicans can offer Terry the biannual exception, which is worth over $600,000 more than a minimum deal.
The Rockets traded for point guard Ty Lawson in July, and also signed shooting guard Marcus Thornton to join mainstays James Harden and Patrick Beverly in the rotation. Signing Terry to a deal above the veteran minimum would hard-cap the Rockets as a tax-paying team.
Terry played in 77 games last season, his 16th in the league. He averaged seven points per game and shot 39 percent from three.
- Rohan Nadkarni