The Magic and Wizards are discussing a blockbuster trade that would send Gilbert Arenas to Orlando, a person with knowledge of the talks confirmed to CBSSports.com Friday.
The person characterized the talks as “serious,” with definite interest on both sides to make the deal happen.
UPDATE: League sources say a third team is involved, with the Suns possibly contributing Hedo Turkoglu to the equation. The Magic, trying to make a bold move to close the gap with Boston and Miami, would wind up with Arenas and Turkoglu, who would return to the team he led to the NBA Finals before a frustrating year in Toronto. Magic center Marcin Gortat is "100 percent involved," though it's unclear whether the Magic would be sending out Rashard Lewis, Vince Carter, or both.
CBSSports.com reported in October that Orlando and Washington discussed an Arenas trade over the summer, but at the time, it was scuttled by financial concerns on the Magic’s part. Orlando has a league-high $94 million payroll, and Arenas -- owned $62 million over the next three seasons -- is coming off two injury-plagued seasons and a 50-game suspension for bringing firearms to the Wizards’ locker room last season. As previously noted, Magic GM Otis Smith has a strong relationship with Arenas and has always been the most likely executive in the league to take another chance on him.
But according to a person familiar with the situation, Smith faces two significant obstacles in bringing Arenas to Orlando. The first is Magic coach Stan Van Gundy, who has told friends he is extremely reluctant to add Arenas to the roster. The second, and even more important impediment, is Orlando ownership, which has serious reservations about absorbing Arenas' contract. Arenas has one more year left than Lewis and two more than Carter -- essentially three more with Carter's partial guarantee in 2013-14. Turkoglu's contract could ease some of that pain, as the Turkish star agreed to accept a reduced guarantee in '13-'14 as part of his trade from Toronto to Phoenix.
In the first six weeks of the season, Arenas has quelled some doubts about his health and explosiveness while the Magic, according to sources, have concluded that they need to make a significant trade to justify their payroll. Orlando has lost five of its last six and is looking to significantly upgrade its backcourt. Yahoo! Sports first reported Friday that the Arenas-to-Orlando talks were reignited in recent days.
“They need to go make a deal,” a person familiar with the Magic’s plans told CBSSports.com. “They’re not in the same class as Boston or Miami With a $94 million payroll, they didn’t do that to get out of the first round. The window has closed up a bit.”
The motivation is equally strong on the Wizards’ part. Injuries and a young roster built around No. 1 overall pick John Wall -- with Arenas uncomfortably lingering as the team’s former franchise player -- have conspired to produce a 6-18 start. Arenas is said to be eager for a fresh start, and a person familiar with the Wizards’ plans described the parting of Arenas and Wall as “inevitable.”
“This is John’s team,” the person said.
The specific pieces involved in the potential trade are still in flux, but it is likely to include the $17 million essentially expiring contract of Vince Carter, who has only $4 million guaranteed next season. If not, smaller contracts could be combined to make the deal work, starting with center Marcin Gortat, who has been the subject of trade talks between Orlando and other teams, including Portland.
The Magic, according to a person familiar with their plans, are continuing to engage in trade talks with multiple teams with the goal of deciding if adding Arenas -- who, when healthy, would add the missing element of a perimeter player who can create his own shot -- is the best alternative.