C.J. Watson has decided to pass on Golden State's three-year, $5.6 million extension and will sign for the qualifying offer worth just over $1 million, multiple sources confirmed to RealGM's Alex Kennedy.
Watson will play out the remainder of his contract and become a restricted free agent again next summer. Golden State could enter the season with as many as five point guards on their roster and playing time was a big factor in this decision.
The Warriors could come back with a higher proposal once they learn that Watson will sign for the qualifying offer.
Marcus Thompson of the Contra Costa Times reported on Monday evening that Golden State had increased their offer to $5.4 million over three years.
Last season, Watson averaged 9.5 points and 2.7 assists in 77 games with the Warriors.