5-year, $58 million offer sheet. The Hawks have a week to match the deal.
The Hawks have already lost Josh Childress to Europe and losing Smith would be a major blow to their playoff chances. It would also be more bad publicity for an organization that has received its fair share in the recent past. Atlanta didn't want to pay Smith that much money, but they almost have no choice but to match the offer.
At the same time, Memphis is overpaying for a guy who, although exciting, doesn't seem to be worth $11 mil-plus per year. But they have plenty of cap room in Memphis and adding Smith to a team that already features Rudy Gay and OJ Mayo would make them at least more appealing to the fans. If they were in the East, they might have a fighting chance. This is a move with an eye towards the future, though, as those three players would presumably be Grizzlies together for a long time.