4:58pm: Lin wants more money than the $31MM offer from the Rockets, reports Ian O'Connor of ESPNNewYork.com (Twitter links). Lin is now waiting to see if the Mavericks present him with an offer as the team remains in the hunt for a starting point guard.
10:59am: The Rockets' offer is for four years and worth a little over $30MM, according to Alex Kennedy of HoopsWorld. Marc Berman of the New York Post pegs it at about $31MM. Lin has yet to make a decision on whether to accept it.
THURSDAY, 12:28am: The Rockets have extended an offer to Jeremy Lin and he's considering it, according to Adrian Wojnarowski of Yahoo! Sports. Houston's multiyear offer includes a significant raise in year three, designed to hit the Knicks hard in the luxury tax. Lin will mull over the offer sheet and decide whether to accept it or to keep shopping, says Wojnarowski (all Twitter links).
WEDNESDAY, 5:39pm: The Houston Rockets are meeting with Knicks restricted free agent guard Jeremy Lin tonight and are expected to make a formal offer, tweets Marc Berman of the New York Post. Berman speculates that the Rockets' proposal will be a three-year deal with an option for a fourth year, worth an estimated $30MM. Berman expects the Knicks to match such an offer if Lin agrees to it.
Lin is a restricted free agent with two years of NBA experience, meaning that his suitors are bound by the Gilbert Arenas rule and offer sheets cannot exceed the $5MM midlevel exception. However, teams hoping to pry these players from their old teams can backload their contracts in the third year, making it difficult for cap-conscious teams to match. The Rockets did this with Bulls center Omer Asik, and the Raptors did it with their offer sheet to Knicks guard Landry Fields, worth $20MM over three years.