They have Bayless.
I think Bayless is more of a PG than a SG, but he plays both for them.
I actually think this could potentially work. They do have a bit of a need at SG behind Allen (who may not be there next season). Bayless backs up both Allen and Conley, Dooling is most likely going back to retirement, Pondexter is out of position there and Wroten is still too raw.
Terry's game would be great with Gasol running pick and rolls and he adds some veteran experience.
I just don't see Memphis willing to take on his contract unless they really think Terry was just struggling to adjust without a legit big man to work with or if they think he might retire soon. I like the fit though.