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As far as Jeremy Lin is concerned, he probably stays on the team and on the injured list for the whole year. He sells tickets and is a big deal to the Asian-American community here on the West Coast. Second year is where he has to finally show something or he gets cut.
Exactly, that sums it up well. He's a developmental undrafted point guard, and for the Warriors it really is a win-win, he sells tickets and jerseys, and they can develop him a little and see if he can become good enough to stick around. If not, no harm no foul, he gets cut.