That's the current offer Seattle has on the table and Allen and his agent have walked away until a more significant offer is made from the Sonics. Allen is eligible for $97 mill over a 5 year period but rumor has it that he isn't pushing for the max but rather splitting the difference between his max and the Sonics current offer (or $80 mill for 5 years).
The Sonics current offer of $70 mill means an average of $14 mill a year -- he is holding out for more like $16 a year.
Personally, I don't think that Allen is worth $14 a year -- he IS a legit shooter and a solid defender but IMO you don't play guys over $10 mill a year who can't strap a team on his back and carry the team. The Sonics success this year has a LOT more to do with the arrival of Fortson and the rise of Rashard Lewis than it does Ray Allen, IMO.