According to multiple sources, the Houston Rockets will decline the fourth year option on small forward Chandler Parsons.

Parsons is a former second round pick by the Rockets who was drafted in 2011. He's worked out very well considering he wasn't scouted very high and isn't making very much in comparison to other small forwards. Last season, Parsons averaged 16.6 points per game with 5.2 rebounds. Not exactly Hall of Fame material, but again that's really good for a player who was drafted in the second round and isn't even making one million dollars per season.

Next season, Parsons is scheduled to make $964,750 if the Rockets still decide to pick up that fourth year option.

Regardless of the immediate decision, nobody knows what Parsons will decide to do. This Rockets team has a bit of an identity issue and it must be fixed. If the Rockets decide to re-sign the 25-year-old small forward, they may have to trade away Jeremy Lin. Lin has a big price tag for next season (nearly $15 million) so it may be tough to trade him. Releasing Lin and taking a cap hit may be the only option if the Rockets want to keep Parsons.

There is still the possibility that the Rockets will not re-sign Parsons. Another team may offer a big amount this summer and the Rockets won't match. If the Rockets lose Parsons, then keeping Lin for depth would appear to be a must. Losing both Lin and Parsons would put tremendous pressure on James Harden offensively.

For Lin, it may be the best thing to leave Houston because of the system implemented by coach Kevin McHale. McHale prefers the multiple point guard format with James Harden handling the basketball on numerous possessions. Then, other times, he allows Patrick Beverley and Lin to conduct the offense as the point guard without a stable consistent flow. It puts too much pressure on Harden to ball handle and shoot, and doesn't give enough experience to either Lin or Beverley down the road.

The Rockets play in an extremely loaded Western Conference, so replacing Parsons will be a must. Of course, the big name on the market this off-season is Kevin Love, but there hasn't been much talk surrounding Love and the Rockets. On the other hand, if the Rockets do decide to let Lin go (by release or trade) they will have to find a replacement point guard or hope Beverley improves drastically this off-season.

The Rockets could also try another option. If there's a player or package out there they are very interested in, they could attempt a "sign and trade" deal. With Parsons' approval, he could re-sign for more money and be sent to another team for a value player or draft picks. Is it possible the Rockets could do this and send Lin along with him freeing up cap space? That could be a win-win situation for everyone involved.

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