NBA

J.R. opts out of Knicks contract, expected to re-sign

J.R. Smith will become a free agent Sunday as he has decided not to exercise the opt-in clause on his contract at today’s deadline, according to sources.

The Knicks remain confident he will re-sign with them for the 20-percent raise that is allowable, according to a source. With the raise, Smith can make close to $2.8 million next season on a one-year deal with the Knicks, who don’t have to use their mid-level exception.

Had he opted in, Smith would have made just $2.5 million.

Smith prefers a one-year deal because that would give him Bird rights next summer. This would allow him to sign a long-term deal at a much higher rate.

It is unlikely a team will outbid the Knicks, but it is not impossible. The Clippers showed interest after Smith came home from China in February. The Nets could use another scorer and drawing card for Brooklyn.

The Freehold, N.J., native has stated repeatedly he wants to stay with the Knicks as he considers this home and is building a house in New Jersey.

Smith’s market value is a mystery despite his appeal as a dynamic bench scorer. Smith has baggage — recent incidents include getting fined by the NBA for tweeting a partially nude woman in his Milwaukee hotel room and getting arrested in South Beach on a bench warrant. He also is suing his Chinese team for $1 million to recoup fines levied against him for allegedly missing 80 practices. Smith shot a dismal 31.6 percent in the playoffs.

* Mike Woodson said he won’t comment on the NBA’s investigation into Amar’e Stoudemire allegedly tweeting a homosexual slur to a fan in a private direct message.

“I haven’t had a chance to talk to Amar’e or our ownership about it,’’ Woodson told The Post. “First thing is to talk to Amar’e and get his comments on it before I make any comments.’’

* Union and NBA lawyers yesterday discussed ways of avoiding the league appealing the union’s victory in the J
eremy Lin/Steve Novak Bird rights case. An appeal would delay the Knicks being able to negotiate with both when free agency starts Sunday. One potential compromise is agreeing to end the provision allowing players claimed on waivers to retain their Bird rights after this summer.

* Steve Nash said on ESPN Radio he is “open to everything,’’ but admitted Mike D’Antoni, had he remained coach, would have been “a factor’’ in signing with the Knicks. Nash also said money is a big issue. That doesn’t help the Knicks, who probably will have only a $3 million mid-level exception for tax-paying teams.

“It’s still very important,’’ Nash said. “I think money in many ways represents respect. For example, if you sign with a team and take half or less money, six months later they trade you. It has to be one of the factors. It’s not everything but it is important and will be one of the factors.’’