Chandler Parsons joins the Dallas Mavericks as Rockets elect not to match contract

The Rockets have stunningly elected not to match the 3-year, $46-million contract offered to Chandler Parsons by Dallas, allowing Parsons to become a member of the division rival Mavericks.

The news was first reported by the Houston Chronicle‘s Jonathan Feigen, who cited a team source as saying the “decision largely came down to whether the Rockets were good enough with a big three of Harden, Howard and Parsons.”

“[They] ultimately decided they would not be a championship team and would have no room to build,” the source said.

Sources previously said the Rockets planned to match Parsons’ offer if Chris Bosh had signed with the Rockets, as expected. In that scenario, Parsons would have been the team’s fourth-best player.

Trevor Ariza, who agreed to terms with Houston on Saturday, will likely replace Parsons as the team’s starting small forward.

The Rockets, of course, could have had Parsons as their starting small forward in 2014-15 at a paltry salary of near $1 million, if they picked up the final option year on his original NBA contract. But general manager Daryl Morey opted to send Parsons into restricted free agency in an effort to negotiate what they hoped would be a friendlier long-term deal.

Instead, the move seems to have backfired, as Parsons now leaves Houston for no compensation.