Had they done that, however, Parsons would have been an unrestricted free agent the following year, and the team would not have been guaranteed the opportunity to be able to match any offer he received at that time they way they can now.
Houston is interested in re-signing Parsons, but they may also look to trade him if one of the marquee free agents on the market expresses interest in the Rockets.
"The Rockets are interested in re-signing Parsons, league sources said, but his future could also be affected by what happens to Golden State Warriors forward Klay Thompson and New York Knicks free-agent forward Carmelo Anthony.
The Minnesota Timberwolves are still interested in acquiring Thompson in a blockbuster trade that would send All-Star forward Kevin Love to the Warriors, a source said. But the T’wolves also have secondary interest in Parsons, the source said. If the Thompson trade doesn’t happen, the source said Minnesota could attempt a deal sending Love to the Rockets and acquire Parsons in a sign-and-trade. The Los Angeles Lakers,Chicago Bulls and Dallas Mavericks have primary interest in signing Anthony as a free agent, but also could chase Parsons if they don’t, a source said."
The Warriors talks with Minnesota stalled when the team couldn’t come to grips internally with parting ways with Klay Thompson in any Kevin Love trade. Houston and Chicago would appear to be the teams most likely to try to trade for Love that happen to be on his list of places he’d agree to sign long-term. While other teams like Phoenix and Boston have more desirable assets, Love hasn’t indicated that those are places he’d agree to stay.
Parsons will get paid by someone in free agency — he averaged 16.6 points, 5.5 rebounds and four assists, while shooting 37 percent from 3-point distance in 37.6 minutes per contest. Houston will likely do whatever it can to re-sign him, but that doesn’t necessarily mean he’ll be with the Rockets next season.
Brett Pollakoff, NBC's Pro Basketball Talk