The New York Knicks plan to let Jeremy Lin go to the Houston Rockets, the New York Times reported Tuesday, citing sources close to the situation.
The Knicks have until 11:59 ET Tuesday to match Lin's three-year, $25.1 million offer sheet with the Rockets, which would allow the Knicks to retain him. But apparently they have decided not to match the offer.
The Knicks are expected to announce their decision Tuesday evening.
It's still possible the Knicks could change their mind in the remaining time and decide to sign him, but that seems unlikely as of Tuesday afternoon, when a decision was made not to match the offer.
The decision, according to the Times, was financial. The Rockets' offer includes a payment of $14.9 million in the third year, which would have cost the Knicks another $35 million, perhaps more, in luxury-tax penalties.
Lin had become the Knicks' most popular player, as well as becoming a global phenomenon, by bringing the Knicks back to playoff contention after having been waived by the Rockets earlier last season.
In recent days, two people familiar with the situation had said it was unlikely Lin would be kept, according to the Times. But they both said the decision ultimately would be made by James L. Dolan, the Madison Square Garden chairman.