Houston could offer the same max $88 million contract but Texas doesn't have state taxes, which means Howard could keep more of his money.
Using the cleared salary-cap space, Golden State signed Iguodala, 29, to a four-year, $48 million contract.
According to multiple sources, Iguodala -- whom Golden State has long coveted -- wants to play for the Warriors. He's a big fan of coach Mark Jackson and Stephen Curry, and his game fits the Warriors style of play.
Part of the reason, per one source, Iguodala did not sign Sacramento's four-year, $52 million offer was because he wanted to see if there were a chance he could play for the Warriors.
The Warriors cleared the cap space needed by trading the expiring contracts of Andris Biedrins, Richard Jefferson and Brandon Rush to Utah. The deal also included multiple picks, including the Warriors' 2014 first-rounder.
The Warriors also had to renounce their rights to guard Jarrett Jack and forward Carl Landry. Golden State had the Bird rights to Jack, which meant they could sign him to a new contract despite being over the cap. But to get under the cap, the Warriors had to waive that right and now Golden State can't afford Jack or Landry.