6/16/09 Update: For discussion about the more recent Shaq rumors, click here.

6/25 Update: Shaq has been reportedly traded to Cleveland.

The trade deadline is at 3 PM ET today, and the rumors are flying fast and furious. I’m not going to spend too much time on each one, but here’s a rundown of the rumors…

- Yahoo! Sports says that the Cavs are considering acquiring Shaquille O’Neal at the cost of Ben Wallace and Sasha Pavlovic. I’m not sure what the upside is here for the Suns other than the fact that they’d get about $5 million in cap relief next season when Pavlovic’s salary comes off the books.

- The NBA league office apparently sent out a memo warning of drastic reductions in the salary cap and luxury tax thresholds, which may have a few teams scrambling today.

- There was some talk of a Tracy McGrady-for-Baron Davis deal, but that rumor seems to be dead.

- The Suns are reportedly still trying to pry talent away from the Grizzlies, offering up Amare Stoudemire for Mike Conley, Rudy Gay, Hakim Warrick and a 2009 first round draft pick. Unsurprisingly, the Grizzlies have declined.

- The Bucks are trying to get out from under Richard Jefferson’s contract and they’ve been making some headway with the Blazers and Cavs about Raef LaFrentz and Wally Szczerbiak, respectively.

- The Cavs have been trying to pry Antwan Jamison away from the Wizards, who might be more willing to deal today with the news about the (possible) significant drop in the luxury tax threshold.

- The Vince Carter-to-the-Spurs talk has died down because they don’t want to give up Roger Mason or George Hill in the deal. Apparently, they want the Nets to give Carter away.

Deadline day is like a poker game with 20 people playing. Teams are holding out until the last minute hoping that they can get the best deal. Complicating matters is the state of the economy and the financial strength of the NBA. There could be a flurry of trades today or everyone could stand pat.

The Washington Wizards are involved in some trade rumors as tomorrow’s deadline approaches.

The Wizards, sources said, quickly rebuffed Cleveland’s offer of Wally Szczerbiak’s $13.8 million expiring contract for former All-Star forward Antawn Jamison.

One source with knowledge of the Wizards’ thinking said Tuesday that team president Ernie Grunfeld is determined to continue resisting interest in Jamison and Caron Butler because the club has renewed hope that injured starters Gilbert Arenas and Brendan Haywood will play in a small handful of games before the season ends, affording the Wiz an opportunity to evaluate the full team they hoped to field this season.

Looking at Washington’s payroll, the team is in a really bad way. They owe the injury-prone Arenas a mind-boggling $96 million over the next five years and they owe the 32-year-old Jamison around $40 million over the next three seasons.

I watched Ernie Grunfeld run my beloved Bucks for four seasons and he did a poor job.

Offseason Movement: The Wizards big move this offseason was to re-sign Gilbert Arenas to a huge contract (six years, $111 million). By doing so, they were able to keep their core of Arenas, Caron Butler and Antawn Jamison together. It was a risky signing for the team given all the problems he has had with his balky knee.
Keep Your Eye On: Gilbert’s knee
Simply stated, if the Wizards can keep Arenas, Jamison and Butler healthy, they’re probably a playoff team. If they lose any one of those players for an extended period of time, they’ll struggle to make the postseason.
The Big Question: Was the Arenas signing the best thing for the Wizards?
One school of thought would to let Arenas and Jamison go (via free agency or trade) and build around the much more affordable Butler. But he’s 28, and by the time the Wizards were “rebuilt,� he’d be past his prime. The Wizards pretty much had to sign Arenas and Jamison and hope that another player or two (Andray Blatche, Nick Young, JaVale McGee, etc.) can emerge as a quality starter or role player. The Wizards aren’t going to have any salary cap room for a while, so they may be regretting this summer’s moves in two or three years when they’re still a .500 team and in cap hell.
Outlook: If all goes well, the Wizards will be safely in the playoffs. They’ll eventually lose in the first or second round. If a star gets injured for any length of time, they’ll miss the playoffs. Wash. Rinse. Repeat.