The Chicago Bulls won’t guarantee C.J. Watson’s contract for the 2012-13 season, according to sources close to the situation. Watson will become an unrestricted free agent if he clears waivers.

The final year of Watson’s contract would have paid the point guard $3.2 million, but Chicago decided to go in a different direction, agreeing to terms with free agent Kirk Hinrich on Sunday morning.

The deadline for the Bulls to waive C.J. Watson is July 10. They’re attempting to trade him before that date, according to sources.