Per Wojnarowski, the deal is worth $12.3 million.
NBA fans may recognize Teodosic for his work on the Serbian team in the 2010 World Basketball Championship. He tallied 9.9 points, 4.3 assists and 1.3 steals per game against some of the best competition the world has to offer and thrilled with his crisp passing and ability to glide past defenders.
ESPN analyst Fran Fraschilla called him "one of the premier pick-and-roll players in the world," per Brian Lewis of the New York Post.
"Offensively, he's the best passer in the world," Fraschilla continued. "... Chris Paul is a Hall of Famer, but as far as a pure passer, [Teodosic] might be the most creative passer in the world today. Now he will not guard a chair, but he's a brilliant offensive player and an ultra-competitor."
New teammate and fellow point guard Patrick Beverly said Teodosic "might be the best passer in the NBA right now," per Wojnarowski. He jokingly added he would need to change his hotel alias, as he'd previously used Teodosic's name.
The defense is a concern, especially in the point guard-loaded NBA. He is almost guaranteed to be defending an impact player on a nightly basis at the position and will need to either make significant strides on that end or overcome his shortcomings with plus offense (a la Isaiah Thomas).
Plus offense won't be an issue for Teodosic if he truly is the best passer in the world. Look for him to thrive in pick-and-rolls with Blake Griffin and get out in transition, where he can show off those passing skills.
Teodosic can also stretch the floor with perimeter shooting. According to Basketball Reference, he posted 16.1 points and 6.8 assists a night behind 38.1 percent three-point range in the Euroleague in 2016-17.
Teodosic is 30 years old and likely not a long-term solution who will gradually develop into a franchise centerpiece. Still, he can provide veteran leadership from his time in the World Basketball Championship and overseas and serve as a brilliant passer and formidable shooter in L.A.'s backcourt rotation.
For the short term, signing Teodosic may be a major coup for the Clippers as they look to find a replacement for CP3 after trading him to the Houston Rockets.
Although Teodosic may not be an All-Star-caliber player like Paul, he should be a strong fit on a roster that already includes Griffin and DeAndre Jordan and will add Danilo Gallinari in a sign-and-trade with the Denver Nuggets, according to Chris Vivlamore of the Atlanta Journal-Constitution.