Jeremy Lin heads to Houston Rockets as New York won't match offer - CNN

Jeremy Lin of the New York Knicks lays up a shot over Elton Brand of the Philadelphia 76ers in a March game in Philadelphia.

• NEW: The Knicks will not match the Houston Rockets' $25 million offer for the point guard
• Knicks general manager Glen Grunwald had until 11:59 p.m. Tuesday to match the deal
• New York recently signed two other guards, Raymond Felton and Jason Kidd

New York (CNN) -- The New York Knicks will not match the Houston Rockets' offer for guard Jeremy Lin, the Harvard-educated basketball phenom who captured worldwide attention by leading his team to a string of victories last year.

The announcement came late Tuesday from Jonathan Supranowitz. the Knicks' vice president of public relations.

The Houston Rockets offered Lin a three-year, $25-million contract that New York had to match by 11:59 p.m. ET Tuesday if they wanted to retain him.

Knicks general manager Glen Grunwald has until 11:59 p.m. Tuesday to match a deal that teammate Carmelo Anthony called "ridiculous." It would cost his team tens of millions more in luxury-tax penalties were New York to match the Houston deal.

"You are going to take away any flexibility the franchise has for the next two years when you sign that contract," said Mike Francesa, a host for New York sports radio station WFAN.

"It doesn't make sense."

Keep track of Lin developments at SI.com

NY Knicks consider future of 'Linsanity'

Lin, a 23-year-old undrafted point guard of Taiwanese descent who brought "Linsanity" into the lexicon by way of his hardwood heroics, burst onto the scene in early February when then-Knicks coach Mike D'Antoni called him off the bench as the team struggled.

A winning streak -- which included besting all-star Kobe Bryant and the Los Angeles Lakers -- ensued, with Lin coming up big on clutch plays and endearing himself to a growing fan base, likely enamored with his unlikely story.

The man who had been cut by two other teams, and spent his first few weeks with the Knicks sleeping on his brother's couch, quickly turned into a global brand, with store owners packing their shelves with Lin jerseys and other apparel.

But the Knicks sensation soon faced criticism over his proclivity for turnovers. Questions also surfaced about his ability for sustained top-level play and whether his rapid ascent to stardom had been warranted.

In March, he suffered a knee injury, with an MRI revealing a small chronic meniscus tear in his left knee.

New York recently signed point guard Jason Kidd and acquired former Knicks guard Raymond Felton via a sign-and-trade deal with the Portland Trailblazers, raising big questions about Lin's future on the Knicks' roster.

"It was certainly very shocking when the news kind of broke out that they were looking at Raymond Felton and ultimately looking to not match on Lin," said Will Leitch, contributing editor and columnist at New York Magazine. "No one really saw it coming. Even the people that were really close to the situation."

CNN's Jillian Martin contributed to this report.