Over the weekend, the Nets extended an offer sheet to D-Mo, which he accepted. The Rockets had until the end of Monday to exercise their right of first refusal, which they did at around 5pm. However, the Rockets exercised this on condition that Motiejunas pass a physical, which they have a right to do under the CBA.
However, Team D-Mo is mad at Houston, so they're refusing to show up for the physical. It's not clear what they hope to accomplish by this. Larry Coon has more at the link below, but the TL;DR version is this:
1) If D-Mo refuses to show, the Rockets can at any time rescind their right of first refusal.
2) If this happens, D-Mo would still be a restricted free agent, but would not be allowed to sign a new offer sheet with the Nets for a year. So he'd be in the same position as he was last week, but down the team most interested in signing him.
We'll see what happens, but it seems like Team Motiejunas is making a bad situation worse for themselves.
http://cbafaq.com/blog/?p=381