Matt Steinmetz of the Contra Costa times reports that Larry Hughes will probably not be back with the Warriors next season. The Warriors have until June 30 to tender a qualifying offer to Hughes, making him a restricted free agent. As a restricted free agent, the Warriors would retain the right to match any team?s offer and keep Hughes.

By refusing to send the offer, the Warriors are giving up any ?rights of first refusal?. Hughes would be able to sign with any team and the Warriors would be unable to stop him.  

If tendered, Hughes? qualifying offer would be worth approximately $2.9 million. If Hughes accepts the offer, that amount would count against the Warriors for the 2002-03 season, putting them in a precarious position with regard to the league's upcoming luxury tax.

Beginning this season, teams will be penalized for exceeding a certain payroll figure -- expected to be between $48 million and $52 million. The Warriors' payroll -- including a guaranteed contract for their No. 3 selection in next week's NBA draft -- is approximately $46 million for the 2002-03 season. The possible addition of Hughes' $2.9 million would put them in jeopardy.

Last season, the Warriors exercised their right of first refusal on Marc Jackson, then ended up trading him, partially because his salary put them in luxury tax jeopardy.

Hughes' agent, Jeffrey Wechsler, declined to comment on his client's situation but confirmed he had not received an offer sheet from the Warriors. A Warriors source indicated the team won't extend a qualifying offer to Hughes unless it makes a move between now and June 30 that trims payroll.

By not extending a qualifying offer to Hughes, the Warriors also would forfeit their ability to sign and trade him. However, such a deal would be difficult anyway because any trade for Hughes likely would have resulted in the Warriors taking back salary in the form of another player, which wouldn't help their payroll situation