Kings extend qualifying offer to make Terence Davis restricted free agent. Now what?
Kings guard Terence Davis is seeking a big pay raise this summer, but the Kings will have an opportunity to match any offers he receives in free agency.
Kings general manager Monte McNair has extended a $1.9 million qualifying offer to Davis, making him a restricted free agent, the team announced Tuesday. By extending the qualifying offer, the Kings obtained the right of first refusal on any offer sheet Davis might sign with another team, preventing him from becoming an unrestricted free agent.
A league source told The Sacramento Bee the 24-year-old guard is seeking a new contract worth about $9 million per year, which would be slightly higher than the four-year, $34.6 million deal De’Anthony Melton signed with the Memphis Grizzlies in November. It remains to be seen if Davis will be able to command that kind of salary two years after going undrafted out of Ole Miss, but his camp can draw comparisons to Melton based on his age and level of production.
Teams can begin negotiating with free agents at 6 p.m. ET on Aug. 2. Signings can’t be made official until the free-agent moratorium ends at 12:01 p.m. ET on Aug. 6. Under rules of the collective bargaining agreement, the Kings will have until 11:59 p.m. ET on the second day after they receive a signed offer sheet for Davis to match the offer. If they don’t match the offer, the terms of Davis’ agreement with the new team will become binding.
The Kings might be reluctant to match the kind of offer Davis is looking for given their current salary cap restraints, but the projected $9.5 million non-taxpayer mid-level exception could provide some flexibility. Under the Gilbert Arenas provision in the collective bargaining agreement, the first year of any offer sheet for Davis cannot exceed the value of the mid-level exception. The Kings could also use the $3.7 million bi-annual exception if bigger offers for Davis don’t materialize.
The Kings acquired Davis in exchange for a second-round pick in a March 25 trade with the Toronto Raptors. He averaged 11.1 points, 3.3 rebounds, 1.7 assists and 1.0 steals in 27 games, carving out a key role as a reserve for coach Luke Walton while helping the Kings get back into play-in contention. Davis bolstered Sacramento’s bench and demonstrated his explosive scoring ability on multiple occasions, including two 27-point games. He also provided defense and rebounding, helping the Kings improve two of their biggest weaknesses.
Davis felt he was a good fit in Sacramento and expressed a desire to stay when asked about his future with the Kings at the end of the season.
“It’s definitely looking like that,” he said. “It’s looking really good for me. I would say this is some of the best basketball I’ve played in my career, even in college. This is a stretch of some of the best games I’ve played in my entire life.”
Davis went undrafted out of Ole Miss in 2019, but he emerged as an NBA All-Rookie Second Team selection after averaging 7.5 points, 3.3 rebounds and 1.6 assists for the Raptors in 2019-20. His playing time and production dipped last season while he dealt with allegations of domestic violence. Most of the charges against Davis were later dismissed. He said the trade to Sacramento gave him an opportunity for a “fresh, clean start.”
