Quick Question

[WeMadeIt17]

Restricted FA's.. Lets say J.R. Smith say he isn't offered by anyone does he just go back to Denver or do they have to actually re-sign him? and if Denver does not offer him then does he stay a FA through the season?

[Roy Hobbs]

I'll post Larry Coon's explanation, which is hopefully clear:

In order to make their free agent a restricted free agent, a team must submit a qualifying offer to the player by June 30.  This prevents the team from not offering a contract and waiting to swoop in when the player tries to sign elsewhere. The qualifying offer ensures that the team does not gain the right of first refusal without also offering a contract themselves. The amount of the qualifying offer for players on rookie "scale" contracts is based on the player's draft position (see question number 41).  The qualifying offer for all other players must be for 125% of the player's previous salary, or the player's minimum salary (see question number 11) plus $175,000, whichever is greater.  The qualifying offer must be for one season.  A player can elect to accept his qualifying offer (the qualifying offer must be accepted by March 1) and play the following season under its terms.  This is sometimes done in order to become an unrestricted free agent the following summer (see question number 38).

A qualifying offer cannot be accepted after March 1. Teams may place a shorter time limit on their qualifying offer, specifying any date between October 1 and March 1 by which it must be accepted. If the deadline passes and the qualifying offer is neither withdrawn nor accepted, then the player continues to be a restricted free agent. The team and player are also still free to negotiate a new contract after the qualifying offer ends -- the deadline only affects the player's ability to accept the qualifying offer.

Teams may also withdraw an outstanding qualifying offer in which case the player becomes unrestricted.  This happened with Toronto and Keon Clark in 2002.  The qualifying offer cannot be withdrawn after July 23 without the player's approval.

http://members.cox.net/lmcoon/salarycap.htm#36

So, to go back to Denver, Smith would have to accept their qualifying offer.  If he doesn't do so by March 1, Denver is under no obligation to pay him this year, but would still  retain the rights to match any offer he may get.  If Denver withdraws his qualifying offer at any time, Smith would become unrestricted.