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The Toronto Raptors and free-agent big man Serge Ibaka have reached an agreement on a three-year, $65 million contract, according to ESPN's Adrian Wojnarowski. Ibaka, 27, joined the team in February in a trade with the Orlando Magic. 

This deal represents a win for the Raptors, who lost free-agent forward P.J. Tucker -- also acquired at the deadline -- to the Houston Rockets on Saturday. Their next order of business will be finalizing a new contract for star guard Kyle Lowry, who shares an agent with Ibaka. Things to know:

The Raptors aren't blowing it up

Toronto president Masai Ujiri told reporters that the front office had five different plans this offseason. Keeping Ibaka means that the Raptors will not execute the "go young and rebuild" plan. This is a player they had coveted for a while before they traded for him, and he helped them on both ends of the floor when he arrived. This deal should show Lowry that the organization is still serious about competing, even after being swept by the Cleveland Cavaliers in the second round of the playoffs. 

At this point, if Lowry signed anywhere but Toronto, it would be a stunner. He does not appear to have a ton of other options, and it would not make much sense for the Raptors to sign Ibaka if they weren't reasonably sure Lowry would stay, too. 

There are more moves coming

This isn't exactly news -- everybody knew that if the Raptors re-signed Lowry and Ibaka, they'd have a massive payroll. That's why they reportedly discussed a Cory Joesph deal with the Indiana Pacers, and why both DeMarre Carroll and Jonas Valanciunas were reportedly on the block on draft night. Toronto would surely like to dump some salary and manufacture some future financial flexibility. The challenge will be doing that without setting the team back too much next season. 

The player to watch here is Valanciunas. He's a 25-year-old center who will make $15.5 million next season, $16.5 million the season after that and has a $17.6 million player option in 2019-20. In a vacuum, that's a pretty good deal for his production. He can score in the post and out of the pick-and-roll, and at times can look like a dominant rebounder and inside presence. The issue is that he isn't as mobile as you'd like, he has yet to reach his defensive potential and few teams are looking to add big men, let alone a traditional center like him. It's unclear what kind of trade would make sense for him, but it's likely that the Raptors envision Ibaka as their starting center, not their starting power forward. Ibaka was much more effective as a 5 for them, anyway.

The three-year deal makes sense

For Ibaka, this will give him the opportunity to hit free agency at the age of 30 and sign one last long-term deal while he is still in his prime. For the Raptors, this minimizes risk. If Ibaka's body can't hold up as a full-time center, they're not stuck with him for four years while his value is declining. This looks like a tradeable contract in the event that Ujiri wants to revisit the idea of tearing things down, and otherwise it is fair value for someone with Ibaka's skill set. 

Consider this: Ex-Toronto center Bismack Biyombo, also an ex-teammate of Ibaka's with the Orlando Magic, signed a four-year deal worth $18 million per season a year ago. Ibaka will cost $21.7 million per season, and he brings much more to the table because of his shooting. The Raptors still have some question marks on the roster, but making Ibaka a core part of the team looks like a good allocation of resources.