News about where James was headed still hadn't surfaced, when suddenly the Rockets made a moderately significant announcement.
They lured Lin Shuhao from the New York Knicks with a three-year $25 million contract.
The contract seemed modest, but it prevented the New York Knicks from matching because of the "Arenas Clause."
Arenas was a second-round pick by the Warriors and had performed splendidly before the Wizards exploited a loophole, offering a contract the Warriors couldn't match, thus securing Arenas through a "steal."
Thus, the League introduced a new clause afterward, setting limits on the offers for second-round picks, where the first-year salary of the contract couldn't exceed mid-level.
However, this restriction only applied to two-year contracts, as even first-round picks' contracts were only up to four years, so the third year of the offer contracts could see a significant increase.
