According to the Express-News (via Yahoo! Sports), the San Antonio Spurs might offer free-agent Richard Jefferson a multi-year contract slightly above the midlevel exception due to his market value shrinking:
On July 1, Jefferson opted out of a contract that would have paid him $15.2 million this coming season. The San Antonio Express-News is reporting that Jefferson figured he'd cash in on a long-term deal from one of the many teams that had made room under the salary cap for LeBron James. But, the paper reports, Jefferson's market is "shrinking daily" and he shouldn't expect more than a mid-level exception of $5.765 million. "The Spurs are expected to offer a multi-year contract starting at a shade above that," the paper notes.
Though Spurs fans might not like the team to re-sign Jefferson after his mediocre season, he does have one full season of the infamous difficult Spurs system and might have a better second season.
With Jefferson on the back-end of his career, a multi-year contract might be a bit long. However, a reduced contract might be on par on what he does produce for the Spurs.