The Indiana Pacers' best offer for Lance Stephenson was reportedly $44 million over five years, but his camp was searching for a $55 million contract.

Stephenson eventually agreed upon a three-year, $27 million deal with the Charlotte Hornets.

"I really feel bad about losing him,'' Larry Bird said. "I hope it doesn't interfere with our relationship. But I did what I could possibly do to keep him here. Even if he didn't have any other offers, I was committed to giving him that $44 million because I believe in the kid. If you look at our roster, we have five or six guys in the last year of their deals, plus David (West) and Roy (Hibbert) can opt out, so don't you think I wanted to keep Lance and Paul (George) locked into long-term deals?''

Stephenson's agent, Alberto Ebanks, reportedly called Bird several days after the initial offer and said that the $44 million would be too low.

"I don't think this is going to work. I don't believe you have the money available to re-sign Lance.''

Free agent guard Jannero Pargo will re-sign with the Charlotte Hornets on a fully guaranteed one-year, $1.45 million deal, a league source told RealGM.

Pargo has spent the past two seasons with Charlotte, joining the team on a 10-day contract in March of 2013. In 29 games last season, Pargo averaged 4.7 points and 1.8 assists.

A 10-year NBA veteran, Pargo is a reliable reserve for competing teams. The 34-year-old has averaged 6.4 points and 35.5 percent three-point shooting while playing with the Los Angeles Lakers, Chicago Bulls, Toronto Raptors, New Orleans Pelicans, Atlanta Hawks, Washington Wizards and Hornets.

Free agent shooting guard Lance Stephenson has agreed to a three-year, $27.5 million contract with the Charlotte Hornets, a league source told RealGM.

Stephenson met with Michael Jordan, Rich Cho, Steve Clifford and other team officials in Las Vegas on Tuesday night, when the Hornets delivered him a contract offer. Stephenson’s contract will have the annual salary structure of $9 million in Years 1 and 2 and $9.5 million in Year 3, a source said. The third season is a team option.

With the Indiana Pacers, Stephenson blossomed into an effective all-around player and provided an ideal complement to Paul George, Roy Hibbert and David West. His suitors came and went throughout free agency and his dialogue with the Pacers’ front office diminished, leaving an uncertainty about whether their five-year, $44 million deal was still available.

Stephenson heard pitches from the Detroit Pistons and Milwaukee Bucks early in free agency and held fluctuating conversations with the Los Angeles Lakers and Chicago Bulls. Stephenson had been in the process of finalizing a possible deal with the Mavericks before the Houston Rockets decided to allow Chandler Parsons to follow through on his offer sheet in Dallas, sources told RealGM.

The Charlotte Observer first reported that Stephenson reached an agreement with the Hornets.

In his meeting with Charlotte, Stephenson became impressed by the organization’s direction and intrigued about a pitch on his offensive role. The Hornets have searched for an infusion of talent and emerged as a viable option once Gordon Hayward remained with the Utah Jazz.

Stephenson, 23, averaged 13.8 points, 7.2 rebounds and 4.2 assists for the Pacers in 2013-14 and his loss damages their ability to recover from a staggering close to the season. He had been part of distracting on-court antics in the playoffs, but had remained productive and had Larry Bird willing to accept a larger role in his growth.

For Stephenson, the Year 1 salary played a major role between the Hornets and Pacers offers, a difference of nearly $1.5 million. Now, he’ll face the challenge of fitting in a fresh locker room and blending within a diverse talent group.

Indiana chose Stephenson with the 40th overall pick in the 2010 NBA draft. In four seasons, he averaged 9.1 points, 4.4 rebounds and 3.1 assists.

The Charlotte Hornets are now exploring the possibility of signing Lance Stephenson.

The Hornets have previously signed Gordon Hayward and Marvin Williams this offseason. Hayward's offer sheet was eventually matched by the Utah Jazz.

The Hornets have enough cap space remaining to offer a starting salary at approximately $10 million per season.

The Indiana Pacers haven't budged from their offer of a four-year deal starting at $7 million.

Stephenson was an All-Star candidate this past season.

The Chicago Bulls have agreed to re-sign Kirk Hinrich.

Hinrich also drew interest from the Charlotte Hornets.

Hinrich is expected to sign for more than the veteran's minimum, with the Bulls having the "room exception" of $2.7 million available after Carlos Boozer is amnestied.

Brian Roberts has agreed to sign with the Charlotte Hornets on a two-year, $5.5 million deal.

Roberts is a 28-year-old point guard out of Dayton who most recently played for the New Orleans Pelicans.

Roberts initially emerged in Germany playing for Brose Baskets.

The Charlotte Hornets will next pursue Lance Stephenson with their cap space that was earmarked for Gordon Hayward before their offer sheet was matched by the Utah Jazz.

The Indiana Pacers have a five-year, $44 million offer on the table to Stephenson.

The Dallas Mavericks may also get involved with Stephenson depending on what the Houston Rockets decide to do with the Chandler Parsons offer sheet.

The Utah Jazz have notified the Charlotte Hornets that they have matched the four-year, $63 million max contract offer sheet signed by Gordon Hayward.

The contract includes a player option for the fourth year and a 15 percent trade kicker, league sources told Yahoo Sports.

Utah and Hayward had been unable to reach agreement on a contract last fall.

The Cleveland Cavaliers and New Orleans Pelicans have agreed upon a trade involving Alonzo Gee.

The Cavaliers previously had a trade agreed upon with the Charlotte Bobcats involving Gee.

Gee's $3 million non-guaranteed contract will be waived to allow the Pelicans to compete their Omer Asik trade with the Houston Rockets.

Brendan Haywood will still eventually come to the Cavaliers from the Hornets.

Free agent Anthony Tolliver has been in substantial conversations with six NBA teams – including the Los Angeles Clippers and Cleveland Cavaliers – as a stretch-forward addition, league sources told RealGM.

Tolliver has also received interest from the Detroit Pistons, Washington Wizards, San Antonio Spurs and Charlotte Hornets among other organizations, sources said, and teams expect a possible signing next week.

For a playoff team in Charlotte, Tolliver averaged 6.1 points and 2.6 rebounds while shooting 41.3 percent from three-point range. He developed a strong relationship with coach Steve Clifford and a leadership role within the Hornets’ locker room.

Tolliver, 29, has averaged 6.1 points and 3.7 rebounds over six NBA seasons with the Spurs, Golden State Warriors, Portland Trail Blazers, Minnesota Timberwolves, Atlanta Hawks and Hornets. After four collegiate years at Creighton, Tolliver broke into the NBA through the Development League, solidified a niche as a shooter and earned a position in the players’ union.

Tolliver once scored 12.3 points and grabbed 7.3 rebounds per game for the Warriors in 2009-10.