Negotiations between the Memphis Grizzlies and Rudy Gay(notes) ended on Monday without a contract extension, and the forward will become a restricted free agent at the end of the season, league sources told Yahoo! Sports.
League sources said Gay wanted a $12 million annual deal – either over three or five years – because because that's what Indiana Pacers forward Danny Granger received last season. But Memphis never raised its offer beyond approximately $10 million a year. Memphis never made a significant raise in its offer on Monday, and talks broke off before the Grizzlies' game with Sacramento late on Monday.
Many in the league thought there was little chance Gay would take less than what he believed was market value to stay with a fledgling franchise that hasn’t shown a commitment to contending.
Gay will become a restricted free agent on July 1. There will be multiple teams with significant cap space, and Gay could sign an offer sheet that the Grizzlies would have to match to keep him.
Gay, 23, was the Grizzlies’ top scorer at 18.9 points a game last season.