Williams got himself in hot water with coach Avery Johnson by being repeatedly late to practice and shootarounds.
The young guard had been inactive recently due to an abdominal strain. When he was made active again, he saw very limited minutes, as Johnson did not like what he saw from him on the floor.
Then, in what was seemingly a surprise to everyone, Williams was made inactive for the Nets games against Atlanta and at Boston this week, with Johnson saying he would have more to say about this situation on Friday.
Well, Johnson and general manager Billy King decided what would be best for the team and Williams would be to demote him with King saying, "After discussing the situation with Avery over the last several days, I feel the best course of action for Terrence and the team at this time is for him to play in the D-League."
King said he hoped the move would allow Williams to develop and learn to be a professional.
Williams, who was touted by Johnson as a Sixth Man of the Year candidate prior to the season, is no stranger to controversy with the team.
His tardiness to practice is an issue dating back to last season. He also got himself in trouble a year ago by sending out some tweets in which he pondered what life would have been like if another team had drafted him, something the Nets organization did not appreciate.
He also was once thrown out of practice for yelling at coach Kiki Vandeweghe during the 2009-10 season.
New Jersey could attempt to trade Williams, but his value should be low at this point. If they believe he is a hopeless cause, they may settle for a second-round draft pick, but that is just speculation, and it's possible the team is just trying to send him a message by rattling him.
Whether or not it works remains to be seen.
The Louisville product will remain inactive and in the NBA's version of the minor leagues indefinitely, until both Johnson and King feel he is ready to return.
"There is no timetable on his return to the active list, and Terrence's future status will be addressed at the appropriate time," was all King had to say on Williams' future with the team.