According to the Boston Herald:

Tony Allen and Eddie House are staying in the fold.

According to Danny Ainge, the Celtics have agreed to terms with each on two-year contracts.

Ainge would not be specific on the financial figures, but according to a source, both are being paid in the mid-$2 million range.

In the case of House, the money is roughly half the mid-level exception of $5.585 million.

The Celtics did not have to use any of the mid-level on Allen, because he has been with the club four years and the team thus has his “Bird rights.”

It’s nice to finally get something done.

On House: I’ve been one of those fans that have called for a backup point guard that can be more trusted handling the ball, but I’m certainly not going to complain about Eddie House staying in green. He’s a true professional, he brings a ton of energy, and he was a vital piece to our 2008 NBA title. Take away a couple spot-up jumpers from House, we may not be all smiles at this point in time. At two years just over $2 million per, that’s a very reasonable price. Welcome back, Eddie.

On Allen: This is where some skepticism kicks in from my end. Tony Allen is certainly a terrific perimeter defender, and when he has received significant playing time, he has played excellent ball for the C’s over the past four years. However, with that said, he’s no James Posey. Allen is listed at a generous 6′4” and certainly cannot defend the same kind of players that Posey could (tall, long, strong forwards). Allen is a two-guard. This team needs a big small forward. Could Tony Allen and J.R. Giddens going to cut it in 2009?

All in all, I’m not disappointed. While I’m still looking for Ainge to go out and pick up a veteran small forward to fill the void, we still have the financial flexibility to do so. With Allen’s salary attributing to Bird rights and not cutting into the mid-level exception, the C’s will still have roughly $3 million to spend this summer.

UPDATE: From Marc Spears

The Celtics agreed to terms with guards Eddie House and Tony Allen to return, general manager Danny Ainge announced today. Both will get two-year contracts (though House’s second year is a player option, according to an NBA source). House’s deal was made using a portion of the team’s $5.5 million mid-level exception. According to the source, House will make $2.7 million next season and $2.9 million the year after if he excercises his option.

House, who will enter his second season with the team, averaged 7.5 points and 19 minutes per game during the regular season, but those averages dropped to 2.5 points and just under 8 minutes in the postseason.

Allen agreed to a two-year guaranteed deal paying $2.5 million each year, according to a league source. Since the Celtics had Allen’s Bird Rights, they didn’t have to use the mid-level exception to re-sign him. Allen, who will enter his fifth season in green, averaged 6.6 points and just over 18 minutes per game during the regular season and 1.3 points in about 4 minutes per game in the playoffs.

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