Lance Stephenson is now a free agent. (AP)
The Grizzlies declined the option in order to keep as much cap space as possible, sources said, as they hope to retain point guard Mike Conley, who is an unrestricted free agent after nine seasons with the Grizzlies.
Stephenson, 25, will also become an unrestricted free agent. There remains interest in a possible return to the Grizzlies as well as interest from other organizations, sources said. Stephenson showed with Memphis that he can have an impact as a playmaker and source of energy.
Stephenson was acquired by the Grizzlies at the NBA trade deadline in February and played a significant role for Memphis. In 26 games, he averaged 14.2 points, 4.4 rebounds and 2.8 assists while shooting 47.4 percent from the field.
Stephenson signed a three-year deal with Charlotte in 2013 after having some success with the Indiana Pacers. He was dealt to the Los Angeles Clippers last offseason and had some impact with the franchise before being traded to Memphis.
The Grizzlies were swept in the first round of the playoffs by the San Antonio Spurs, with Stephenson averaging 13 points per game.
Stephenson was the 40th overall pick of the Pacers in the 2010 NBA draft.
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