Let's be real. Lee USED TO be one of the best linebackers in the league when healthy. He's not the same player he was even a few years ago. He was a liability earlier this year, and teams were intentionally trying to match up players on him in the passing game.
Just because a player has played well in the past and is a fan favorite does not mean that he gets a pass. LVE is substantially better than Lee as a rookie.
If the team is smart, Lee will be an overpaid, quality backup for this season and riding the pine. That's fine for this year, but next year the team can assess options with Lee.
The team needs to be honest with itself about Lee's ability at this point and assess him for who he is NOW, not who he was.