JULY 25TH, 7:56am: Nelson's deal will pay him $8.6MM in each of the first two seasons, and $8MM in year three, tweets Alex Kennedy of HoopsWorld. The third season is partially guaranteed, but Nelson could make over $25MM if he receives the full guarantee.
JULY 5TH, 2:34pm: Nelson's agent confirmed to Chris Tomasson of FOX Sports Florida that Nelson's new contract will be for three years (Twitter link).
9:52am: Jameer Nelson and the Magic have reached an agreement on a new contract, according to Joshua Robbins of the Orlando Sentinel (via Twitter). The point guard turned down his player option for 2012/13 in hopes of signing a multiyear deal to remain in Orlando.
Reports on the amount of Nelson's 2012/13 option varied from source to source, perhaps due to incentives included in the deal, but it would have paid him at least $7MM, and perhaps in excess of $8MM. However, Nelson wasn't interested in playing on an expiring contract and becoming a year-long trade chip. While his new contract may not match the annual salary he would've earned in 2012/13, it's a near certainty that it will be for at least two or three years.
Nelson struggled at times this past season, setting a career-low in FG% (.427), and averaging just 11.9 PPG and 14.6 PER. But the 30-year-old is still a capable point guard and has expressed a desire to stay in Orlando long-term, something that can't be said about all the players on the Magic roster.