Sounds like a dream doesn't it? Initially I saw no light at the end of the tunnel that Otis Smith constructed however after a little research Orlando actually has a little flexibility (assuming they get a little help). To piggy back off of an earlier post by MagicLA here's the breakdown of how Orlando can open up cap space to sign Deron to max.
- Jameer Opts out (Clears 7.8 million)
- Orlando waives JJ Redick (Clears 6.1 million)
- Orlando waives Von Wafer (Clears 1 million)
- Orlando doesn't offer Ryan Anderson a qualifying offer making him and unrestricted FA (Clears 3.2 million)
- Orlando packages the number 19 pick in the draft with either Hedo or J-Rich for a future draft pick (J-Rich clears 5.8 million. Hedo would clear 11.8 million) The problem with Orlando dealing Hedo or J-Rich is that only a few teams could be under the cap or have a trade exception to take either player without offering salary back.
- Orlando trades Glen Davis for a draft pick (Clears 6.4 million) The problem with this would be once again not taking salary back. Glen Davis however has much more value and has a more reasonable contract than either J-rich or Hedo.
- Orlando can stretch either Glen Davis or Jason Richardson to only take half the cap hit this season. (J-Rich stretch clears : 2.7 million. Davis stretch clears: 3.2 million)
So let's assume the Magic follow steps 1-4. That alone clears up about 18.2 million dollars off of next years cap. That would put Orlando with 49 million on the books for 2012-2013. The salary cap is projected to be around 60 million for next season. Now lets assume a team values the #19 overall pick to take on Jason Richardson's contract for a future 2nd round pick. That clears an additional 5.8 million. Now Orlando has cleared up 24 million. If Orlando follows step 5 they clear up another 6.4 million totaling 29.2 million cleared off the books. 30.4 million off the books would give Orlando roughly only 36.3 million in the books for 2012-2013. With the cap being around 60 million the Orlando Magic could realistically offer Deron Williams a max deal.
Should Orlando completely nuke their entire roster in the pursuit of Deron Williams? I don't think it would be wise to do so. If Orlando whiffs on Deron (much like how it seems the Nets whiffed on Dwight Howard) then Orlando could potentially be awful. Orlando would have only Chris Duhon, Hedo Turkoglu, Dwight Howard, Earl Clark, Q-Rich and Justin Harper under contract. Orlando would however have roughly 23.7 million dollars to spend on filling the holes on the team. In my opinion the only way this is worth it from Orlando's point of view is if Dwight Howard can guarantee Deron Williams signs with Orlando and Dwight himself signs an extension with Orlando. I don't see it as likely and i'd rather not nuke the entire roster but Orlando has to do something big to keep Dwight Howard.
All salary info via ( http://www.hoopsworld.com/orlando-magic-team-salary )