5:09pm: Hollins is likely done as the coach of the Memphis Grizzlies, league sources tell Wojnarowski. After several days of talks between the two sides, they were unable to seriously consider terms of a contract because of hurdles that they couldn't clear with how new management wants the coach to fit into the franchise's belief systems, sources said. Reading between the lines, there would appear to be a divide between Hollins and the stats-oriented members of the Grizzlies front office such as John Hollinger.
Meanwhile, the Grizzlies are eyeing Memphis assistant Dave Joerger as a possible replacement. Grizzlies management is expected to meet soon with Joerger to discuss the situation while Hollins tests his market value.
2:38pm: The Grizzlies have granted permission to coach Lionel Hollins to discuss openings with other clubs, a source tells Adrian Wojnarowski of Yahoo Sports (via Twitter). Talks between the two sides have been ongoing for several days but stalled over the weekend, Wojnarowski hears. Hollins figures to be in-demand as several clubs still have coaching vacancies, even after last week's flurry of hirings.
One recent report pegged Hollins as the favorite in Brooklyn, though that might not be the case. Neither the Nets nor the Clippers have made headway with the coach as of last week, but today's news could put things into high gear. Hollins didn't expect to get permission from Grizzlies brass to talk to other teams before his contract expiration on June 30th, but he'll get a jump on the coaching carousel a few weeks sooner.
Hollins owns a career 214-201 coaching record, counting his 1999/00 season at the helm in Vancouver and four game interim stretch with the Grizzlies in in 2004/05.