The Jets Blog reported this morning that Holmes had previously refused a restructured contract offer from the team.
Update - 2:44 p.m.: Manish Mehta also reports on the Holmes deal, writing, "it is a new, re-worked deal."
Based on the Jets cutting Sione this morning, it was clear that Holmes and the Jets were willing to go to the brink. I was told by a trusted league source that Holmes had dismissed contract negotiations.
The move will likely clear up somewhere in the neighborhood of the $3.5 million beyond the $7.5 million the Jets are tied to pay him. As I noted earlier, there was no reason for Holmes to do this deal as it probably represents his last major payday, he must be credited for helping out the team.