According to a Fox Houston report the New Orleans Pelicans have extended a contract offer to Houston Rockets free agent guard Jason Terry. Terry, who turns 38 in September, would be by far the oldest Pelican. Currently Kendrick Perkins, 30, holds that honor.
The report states that Terry finds the Rockets' offer insufficient. As a 16 year NBA veteran the minimum offer the Rockets could extend Terry is just under $1.5 million. In order for the Pelicans to exceed that offer they would need to utilize the Bi-Annual Exception, which can begin at $2.139 million.
Terry had a good season with the Rockets last year, filling in for the injured Patrick Beverley throughout the playoffs at point guard. As a shooting guard in a point guard's body Terry could make a lot of sense in a reserve role alongside Tyreke Evans handling the ball; much as Terry did in Houston beside James Harden.
Houston has spent almost all of their taxpayer mid-level to bring back K.J. McDaniels. If the Pelicans are indeed offering the BAE it is unlikely the Rockets can match financially. As a taxpaying team the difference between Terry as a minimum contract (costing $947k against the cap and for luxury tax purposes) and $2.139 million (if they could match through an exception I'm not seeing) is significant for the Rockets.
Ultimately the Pelicans may not have an offer out at all; this could be a ploy by Terry's agent. If he does come to New Orleans his expected shelf life is extremely limited but for at least one season he could provide average or better production as a reserve.
Jason Terry played in 77 games last season, starting 18. He averaged 7.0 points and 1.9 assistant per game in 21.3 minutes. Of note Terry shot 39% behind the arc and over a 16 year career has shot 38%.