The worst part of this is, I don't think he's cheap. That spending spree over the summer - $150 million to Ariza, Dedmon, and Barnes. A cheap owner would've stuck for Willie at $2 million per year. The willingness to fire coaches and eat their contracts, even back to opting out of revenue sharing - Vivek is anything but cheap.
The sad reality is, management is just that dumb. They looked at a one-year option at $4 million and said it wasn't worth it. They're fine telling Harry they don't think he's worth squat, letting him go to UFA - think there's a chance in hell he re-signs after all this?
Unless you are 100% dead certain that Harry will never play again, or that he's 100% absolute busto nothing-burger even if he gets back on the court, you pick up that option. $4 million to secure the rights to a promising young rookie. That is absolutely nothing to this team.
Management is that completely hopeless. There is no universe where this move makes sense, no possible justification. None.