According to a report by ESPN.com, the Suns have agreed to trade Shaquille O’Neal to the Cavaliers for Ben Wallace, Sasha Pavlovic, $500,000 and the 46th overall pick.

The Cavaliers were also in talks with New Orleans about obtaining Tyson Chandler. If they had not made the trade for O’Neal, they would have traded for Chandler, according to a source.

The Cavs felt O’Neal was the better option because he has just one year left on his contract, and will not eat up cap space that will enable them to pursue free agents such as Chris Bosh in next summer’s star-studded free agent class. Chandler, who had injury problems last postseason, has a player option for $12.7 million in 2010-2011 that he is likely to pick up.

For the Suns, the O’Neal trade is a straight salary dump. Pavlovic’s $5 million dollar contract next season is only partially guaranteed for the amount of $1.5 million. Factor in the disparities in the contracts between Wallace, Pavlovic and Shaq and the team will save $4.5 million next season. However, when you factor in the savings they’ll reap on the luxury tax, it will be closer to $10 million in savings. That savings can be amplified if Wallace decides to retire and the Suns buy him out of his contract for less than the $14 million he’s owed next season.

The trade is a pretty strong admission by the Suns that the trade of Shawn Marion for Shaq in February of 2008 was a mistake. Marion was a free agent this summer and, had they let him walk, their savings would’ve been $21 million — not the $5.5 million they’re saving in this deal.

Our very own John Paulsen had this to say about the potential trade not two weeks ago…

What’s funny is that the Suns walked away from the negotiation table last season because they thought that a trio of Shaq, Steve Nash and Amare Stoudemire could contend under new coach Alvin Gentry. Stoudemire got hurt, so what’s changed? It appears that the Suns are unwilling to pay the luxury tax price of keeping Shaq on the roster, that’s what.

This trade has the potential to set up some serious drama next season. Imagine a (hopefully) healthy and motivated Shaq joining LeBron in Cleveland. Assuming the Lakers win the Finals, Kobe and Co. will be seeking a repeat. Imagine Shaq and Kobe squaring off for a title next season…

Whether or not this helps Cleveland depends solely on Shaq’s ability to play at a high level deep into the postseason. If they do acquire him, they will need to watch his minutes closely and give him some time off during the season. Winning 66 games isn’t as important as having a healthy Shaq ready for the playoffs.

I like this trade for Cleveland, but Shaq wants another extension and he knows he’s not going to get it in Phoenix. It’s not necessarily a good idea for the Cavs either, as any extension for O’Neal means that they won’t be able to sign a big-name free agent next summer. But if they can rent Shaq’s services for a season and see how it goes, then maybe he could play himself into an extension with an NBA championship.

What do you think Cavs fans?

- SLAM ONLINE has sources that are saying that the Cavs and Rasheed Wallace are working on a two-year deal worth $20 million. The interest was prompted by the fact that Dwight Howard pretty much had his way in the paint against the Cavs in the Eastern Conference Finals. Wallace will be 35 this September, and has averaged about 12 points and seven boards over the last three seasons. He has the ability to spread the court with his shooting ability and has a reputation for doing a good job defensively on Howard, though the Orlando big man averaged 22 points and 15 rebounds in three games against the Pistons this season. If the Cavs do indeed sign Wallace that kind of a contract, it would trim the team’s projected 2010 cap space from $38 million to $28 million. Also, since the Cavs are over the cap, to make this deal happen, they would have to swing a sign-and-trade with Detroit (for Anderson Varejao?). If the deal falls through, SLAM says that the Cavs may move on to Zach Randolph. Wait…whaaa? 6/11 Update: The Cleveland Plain Dealer says that the Wallace rumors are untrue (and would be illegal if they were true).

- DESERET NEWS says that Carlos Boozer isn’t sure that he’s going to opt-out of the final year of his contract (that will pay him $12.7 million) by the end of the month. This contradicts everything he’s been saying up until this point. Maybe Boozer isn’t finding that the market for his services is as strong as he thought it was. It might behoove him to play out his contract, stay healthy (this is key) and join the free agent class of 2010. But by going that route, he will lose the security of a long-term deal. Devin Harris says that Boozer is welcome in New Jersey.

- The RENO GAZETTE-JOURNAL reports that Ramon Sessions‘ first choice is to stay with the Bucks, but he understands that the club is up against the luxury tax so things are a little dicey. I think the Bucks will wait to see what kind of offer sheet he gets from another team and then decide whether or not they’ll match, though it would be wise to start negotiations now.

- The NEW YORK POST is reporting that the Knicks are eyeing Magic center Marcin Gortat for their mid-level exception. The Knicks are on the hook for about $24 million in payroll heading into the 2010-11 season, which means that they currently project to have roughly $34 million in cap space. If the Knicks use their mid-level this season, it will trim that space by about $6 million.

- Contrary to earlier reports, if his agent has any say, it’s going to be tough for Ben Wallace to retire, according to the NEWS-HERALD. It would be the best thing for the Cavs, but Arn Tellem isn’t going to let him walk away from $14 million.

Ben Wallace is considering retirement, Anderson Varejao is likely to opt out of the final year of his contract, and Zydrunas Ilgauskas will play out the final year of his.

Wallace is guaranteed the money and has every right to come back and accept the checks under terms of the deal. More likely if he couldn’t play, the Cavs would look to perhaps get insurance to cover some of the salary and look to trade him. He’d be a valuable commodity because of the expiring contract and teams looking to dump salaries covet them.

There is also a possibility that Wallace could negotiate a buyout of his deal and take a percentage of what he’s owed. But even in that case it would potentially make him a huge trade asset. A team could trade for him at the value of his contract ($14 million) and then save money by buying him out.

I’m not quite an NBA salary cap expert, but I have a pretty good understanding of the rules. Even so, I’m not sure what the financial impact would be of what Wallace is considering. Without Wallace and Varejao, but with Ilgauskas, the Cavs are on the hook for about $53 million, possibly a bit less since there are a few contracts included that aren’t 100% guaranteed. If Wallace were to come completely off the books, that would put the Cavs about $5 million under the cap, which really doesn’t help them all that much since they can already sign a player at the mid-level for about $5.8 million. Where a team really gains an advantage is when they have substantially more than the mid-level in cap space.

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The economy is really starting to take its toll on professional sports, and the NBA is no different. Bad contracts are bad even when the economy is pumping, but they really stand out in tough times like these. So I decided to look through the payrolls team-by-team to try to identify the worst contracts in the NBA. I expected to list 15-20 names, but I ended up scribbling down 68. That’s right, there are no fewer than 68 bad contracts in the NBA.

I didn’t include any of the players that are in the final year of their contracts because…well, what’s the point? They’ll be off the books in a few months anyway. Instead, I wanted to focus on those contracts that are going to haunt teams for years to come, so to be eligible, players have to have at least a year left on their current deals.

It’s tough to compare someone making superstar money to an average, everyday role player, so I split these 68 contracts up into three groups: the Overpaid Role Players, the Not-So-Super Stars and the Injury-Prones. I will rank them from least-worst to most-worst with the thinking that I wouldn’t trade the player for anyone further down the list but I would trade him for anyone previously mentioned. So, for example, if a guy is listed #7 within a particular group, I’m not trading him for anyone ranked #6-#1, but I would think seriously about moving him for a guy that is ranked #8+.

So let’s start with the role players and go from there…

(Note: In most cases, I don’t blame the player himself for his outrageous contract. The fault lies with the general manager that inked the guy to the deal. However, this rule goes out the window if the player has a history of only producing in his contract year – I’m looking at you, Tim Thomas.)

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 All-Star reserves were announced last night and Mo Williams’ name was not on the list. And he’s none too happy about it.

The Magic will get three All-Stars—Jameer Nelson and Rashard Lewis now as well as starting center Dwight Howard—but the Cavs, despite having the best record in the NBA, will only send LeBron James.

Really, it came down to Nelson or Williams, and Mo first and foremost didn’t want to take anything away from his colleague.

“Congratulations to him,” Williams said with a smile. “He deserves it, but there’s only a certain amount of players that can play.”

“You want me to tell you like it is?” Williams chuckled. “Then I’ll tell it like it is. It’s a tragedy. How many players get into the game, and how many players did the Magic get in? They’ve got three players, and we’ve got the best record. Not just in the Eastern Conference, but in the whole league… Best team in the world, and we got one player.”

The guy’s got a point, and [Ben] Wallace’s got his back.

“He took us from a team that was on the verge of competing for a championship to making us a legit championship contender,” Wallace added.

I disagree with Wallace that Williams is the main reason that the Cavs are playing as well as they are (or were, before getting trounced by the Magic last night). LeBron has returned from his stint with Team USA with a focus on defense, and that has translated to the rest of the team. He even has Williams gaining a rep for being a decent defender, which is something that has plagued him throughout his career.

Here are the YTD stats for Williams and Nelson:

Williams: 16.92 PER (#16 PG), 17.0 p, 4.1 a, 3.3 r, 0.8 s, 47% FG, 38% 3PT, 94% FT

Nelson: 20.94 PER (#4 PG), 16.9 p, 5.3 a, 3.4 r, 1.2 s, 51% FG, 45% 3PT, 88% FT

The two players are essentially the same in points and rebounds. Mo has an advantage in free throw percentage, but Jameer has a big advantage in assists, steals, FG% and three-point accuracy. Moreover, Williams plays an extra two minutes per game, so he has more time to post stats. Clearly, from the Player Efficiency Rating, Nelson is the far more productive and efficient player.

Williams has also come up fairly small in the Cavs’ three “marquee” games this season. He shot 6-16 in a bad loss against the Lakers on Jan. 19 and posted just 13 points and one assist against the Celtics on Jan. 9. That trend continued after the reserves were announced when he shot just 4-15 from the field against the Magic last night.

So this comes down to how many players elite teams should get on the All-Star team. I actually think that Mo is more deserving than Rashard Lewis, but that Nelson is more deserving than Williams. But this probably has to do more with LeBron than anything. He is viewed as a one-man wrecking crew and that will automatically discount the contributions of his teammates. Throw in the fact that Allen Iverson was voted in by the fans and it was obvious that someone was going to get screwed. It happens every year.

Williams has a gripe, but Jameer Nelson deserves to be an All-Star, there’s no doubt about that.

Offseason Movement: The Cavs swung a good deal by trading Damon Jones and Joe Smith (to the Bucks and Thunder, respectively) for Mo Williams, a dynamic scoring point guard who can also pass the ball (17.2 ppg, 6.3 apg). It’s not clear just how much he’ll get to handle the ball, but the Cavs would be wise to let him take some of the offensive load off of LeBron. Williams was basically a salary dump by the Bucks, who just signed him to a long deal in the summer of 2007, so the Cavs are rolling the dice that he’s worth the dough.
Keep Your Eye On: LeBron’s mood
We’re still two years away, but the time is drawing near. LeBron can opt out of his contract in the summer of 2010, which gives the Cavs two years to make some serious progress. It’s possible that he’ll make his decision after this season, and barring a huge season for the Cavs in 2009-10, he may bolt for Brooklyn or some other destination. The Cavs would like the media to stop talking about this possibility, but the ticking clock is only going to get louder and louder.
The Big Question: Is this team good enough to make a run?
I like the Mo Williams trade, but there’s no guarantee that he and LeBron will jive. The Cavs have a nice yet unexciting roster. Delonte West and Daniel Gibson bring some backcourt punch off the bench, Wally Szczerbiak may or may not have anything left in the tank and Ben Wallace and Zydrunas Ilgauskas make for an aging (and slow) frontcourt. Chemistry will be key.
Outlook: Barring an injury to LeBron, the Cavs will make the playoffs, but how deep will they go? With the Celtics still the cream of the crop in the East, with Philly adding Elton Brand, with Toronto adding Jermaine O’Neal, with the Heat adding Shawn Marion and Michael Beasley, it’s not going to be a cakewalk. I don’t know what it’s like in Cleveland, but from afar, I just get this overwhelming feeling of dread surrounding LeBron’s future. Another Finals appearance might be the only thing that can quiet the pessimists.

Offseason Movement: The Bulls were relatively quiet this summer, but they did manage to sign Luol Deng to an extension. They were unable to sign Ben Gordon to a long-term deal, so it looks like he’s on his way out of town. He’ll be motivated for his next contract and would be a good candidate for an in-season trade. The team also signed Vinny Del Negro as its head coach.
Keep Your Eye On: Derrick Rose, PG
The #1 overall pick should see lots of action in the backcourt with Kirk Hinrich sliding over to shooting guard. Physically, he’s ready to play in the NBA and has the makings of an impact point guard not unlike Chris Paul or Deron Williams. He needs to work on his jumper, but once he gets that going, watch out.
The Big Question: When is this team going to fulfill its potential?
For the last few seasons, the Bulls have seemingly been on the verge of putting together something special. They shot themselves in the foot when they (way) overspent on Ben Wallace and sent Tyson Chandler to New Orleans where he’s now emerging as a star. With a starting lineup of Rose, Hinrich, Deng, Drew Gooden and Joakim Noah, along with a bench that includes Andres Nocioni, Larry Hughes and Ben Gordon, the team has the talent to compete with anyone in the East. The question is chemistry.
Outlook: The same old same old. Once again, Bulls fans look at their team’s roster and see a group of very good players. Deng is the closest that the team has to a star, so in a way, the Bulls lack an identity. Until someone emerges, whether it’s Deng or Rose (or someone else), the Bulls will be a mediocre team with the potential to be a contender. It’s not clear what Del Negro will bring to the table in his first season, so come April, it seems likely that the Bulls will be fighting for a playoff spot down the stretch in the weaker Eastern Conference.

As a Cavs fan, I love the trade, just because it finally rids them of Larry Hughes. Hughes is a good guy but he was a disaster on this team. Bill Simmons agrees, as he now claims the Cavs should be the favorites in the East:

As for the other big trade this week, kudos to Danny Ferry for somehow getting four of the best five players in an 11-player trade. That has to be some sort of record, right? I already made the case for Wally Szczerbiak and Delonte West helping the Cavs in my Trade Machine piece Wednesday (scroll down to trade 4A), but the Chicago guys pushed the deal over the top for me. First, Drew Gooden needed to go — he was too inconsistent and too much of a bonehead, and we neared the point when a fed-up LeBron might punch him in the face during a game about three months ago — and Joe Smith gives the Cavs steadier minutes and reliable production with those minutes. (Maybe Smith’s ceiling isn’t as high as Gooden’s from game to game, but when you have LeBron you need consistency from the rest of the guys more than anything else.) Second, the fact Ferry was able to trade an overpaid guard who actually drove a frustrated Cavs fan to create a site called www.heylarryhughespleasestoptakingsomanybadshots.com and update it every day … I mean, even if you got back a dead body for Larry Hughes, it would have been a moral victory.

Instead, the Cavs got back the Artist Formerly Known As Ben Wallace, someone who stopped being an elite rebounder and shot-blocker about three years ago, but someone with playoff experience and the ability to defend bigger guys like KG, Shaq or Duncan. He certainly makes more sense for the 2008 Cavs than Larry Hughes did. Anyway, I thought the Cavs could win the East before this trade, simply because none of the Eastern teams have someone who can match baskets with LeBron in a close game. Now? They’re the favorites. Look, I love the Celtics, I watch them every game, it has been the most enjoyable season in 15 years. … But a playoff series almost always comes down to one question as long as both sides are relatively equal:

Which team has the best guy?

Well, LeBron is better than anyone else in the East. So if you were beating Cleveland this spring, it was happening because your supporting cast was significantly better than LeBron’s supporting cast. That’s why this trade was so dangerous for Boston and Detroit; it shortened the sizable gap between guys 2 through 12 on Cleveland and guys 2 through 12 on Boston and Detroit. Now LeBron has four shooters who have shot 40-plus from 3-point range at least once in their career (Wally, Delonte, Boobie Gibson and Sasha Pavlovic), three seasoned rebounders (Wallace, Smith and Anderson Varejao), a scoring center (Zydrunas Ilgauskas) and, best of all, no Larry Hughes screwing up everything. LeBron is in a much better place than he was last year, and what’s even more frightening is that he has been playing out of his mind since last April. I know the Celtics are 41-11, and I know the Pistons have been there a million times … but still, how could you bet against LeBron in the East when he’s playing like this?