It's not that they wouldn't offer contracts to certain players, just that they're hesitant to offer too much money for too long. Mohammad went to Detriot because the Spurs wouldn't give him a fifth year.
I bet if a guy like Gerald Wallace became available the Spurs would be willing to give him a long-term deal, and they were willing to at least inquire about Corey Maggette. So I don't think it's a "hard and fast" rule, but I think the Spurs FO is cost-concious about longer term deals...

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