RUMOR HAS IT…

In this week's section geared exclusively towards the latest rumors floating around the NBA …

Portland/Miles: On the heels of a Yahoo! report that the Darius Miles/Portland Trail Blazers clock is down to just two games - the Blazers sent out a message to the rest of the league threatening litigation if any team signed Miles "to a contract for the purpose of adversely impacting the Portland Trail Blazers Salary Cap and tax positions."

"Please be aware that if a team engages in such conduct, the Portland Trail Blazers will take all necessary steps to safeguard its rights, including, without limitation, litigation," says the letter from Blazers President Larry Miller.

That's quite the bold approach considering how difficult it would be for the Blazers to prove a competing team's motivation in signing Miles is strictly for the purpose of upsetting Portland's plans - and not a move to simply better their roster.

Miles retired in 2007 after struggling to recover from microfracture knee surgery in late 2006.  His remaining $18 million contract (spread out evenly over this season and next) has since come off the Blazers' books - although he still receives compensation.

After playing six preseason games for the Boston Celtics and two regular season games with the Memphis Grizzlies, Miles is just two away from reaching the magic number of 10 that would "un-retire" that $18 million on Portland's cap.

Opting to go on the offensive before Miles ends up on another team (or back with the Grizzlies), the Blazers may be looking to intimidate the league with what may truthfully be an empty threat. 

"Portland has no 'rights' in this situation. If Miles can play, then they're not entitled the cap relief," said one well-versed source.  "They neither have any 'right' to it, nor to any privileges (such as cap room this summer) that result."

Still - the statement in and of itself makes it clear that the Blazers will take it very seriously if Miles ends up back on an NBA team.  The end result of litigation (winning/losing) is not always the point - the expense of time, resources, distraction and the potential limbo the process could potentially produce - that may be the deterrent the Blazers were seeking.

The NBA is often a cut-throat business - don't be surprised if Miles ends up on a roster before the season is out . . .

In the meantime, expect for the Blazers to be reprimanded by both the NBA Front Office and the Players' Union.  From the players' perspective Miles is just trying to get his once-promising career off the ground.  He and his representatives may have something to say about Portland's declaration.

Financial Ramifications: Portland's salary currently totals ~$70,060,316 (including the buy-out of guard Steve Francis).  The luxury tax threshold is $71.15 million - so the Blazers are just under the cut. 

Add Miles' $9 million salary to the equation and suddenly the Blazers are at about $79.06 million.  That's $7.91 million in tax Portland would suddenly have to pay - and about $263,677 that would go into the pockets of every other team under the tax line.

The Blazers would also lose out on the redistribution of luxury tax which projects to be at about $2.9 million this summer - assuming the Detroit Pistons make another trade to get under (something like Alex Acker for a conditional second-round pick) and the league allows Eric Snow's final year off the Cleveland Cavaliers' books (medical retirement).

In other words, the Blazers would be looking at financial loss of about $10.8 million if Miles plays in two additional games.

Beyond the financial penalty - the Blazers would find themselves limited this summer if they suddenly have to tack on another $9 million to their cap figure.

Assuming the team renounces the rights to forwards Channing Frye and Ike Diogu, their total salary number (not including a 2009 draft pick) would be $39.9 million.  For the 2008/9 NBA Season, the cap is set at $58.68 million.  While it typically goes up each year - the current economy could mean it stays about the same.  For the sake of argument - let's go with a round number at $59 million.

With all the young talent the Blazers are already sitting on - they're also looking at roughly $19 million in cap this summer.

Put Miles' $9 million back on the books and suddenly Portland's spending power is almost cut in half - down to $10 million.

Technically guard Steve Blake and forward Travis Outlaw can be cut before the end of June to prevent their salaries from becoming guaranteed next season.  That's not how the Blazers want to open up enough space to offer a free agent a max (or near-max) deal.

Why 2009 and not 2010?  Considering most teams are looking to maximize their space for the summer of 2010 (when LeBron James, Dwyane Wade, Amar'e Stoudemire and a host of other high quality players could be available) - the Blazers need to make their splash a year earlier.

At issue are the contracts of Portland stars - guard Brandon Roy and forward LaMarcus Aldridge.  Both stand to be restricted free agents in 2010 - although there's a good chance the Blazers lock the pair down to lucrative extensions.

Big money deals may mean no cap space in 2010 - assuming conservatively that both get deals starting at $10 million a season.  Even if they do become restricted free agents - their combined cap hold would be about $26.3 million.

To keep both Roy and Aldridge - and get deep enough under the cap to bring in a third significant piece - the Blazers would have to flat out gut their roster.

Essentially 2010 is out for Portland unless they make radical changes to their roster - assuming Roy and Aldridge are indeed the future of the franchise - which they are.

If so pressed the Blazers may be forced into making a deal before the February deadline with the expiring contract of Raef LaFrentz as a major building block - if their spending power in 2009 is seriously endangered.

Some of the big-name free agents potentially available in 2009 include Lamar Odom, Rasheed Wallace (the irony), Carlos Boozer, Mehmet Okur, Shawn Marion, Mike Bibby, Jason Kidd, Allen Iverson, Jamal Crawford, Ron Artest, Hedo Turkoglu and Andre Miller - among others.

Very few teams will have cap space this summer.  Competition for free agents between General Managers can be just as feisty as the Los Angeles Lakers/Boston Celtics Christmas match-up.

To be able to almost eliminate a suitor by drastically reducing their spending power - that's got to appeal to any of the other teams thinking space in 2009. 

Teams like the Atlanta Hawks, Detroit Pistons, Oklahoma City Thunder, Memphis Grizzlies, Miami HEAT and Minnesota Timberwolves may have varying amounts of cap room this summer - but that's dependent on what they do with their own free agents.

Putting the Trail Blazers at a financial disadvantage makes a lot of sense for any one of those teams looking for a leg up.  It might burn a bridge or two in Portland - but so be it . . .

Which leads to the question . . . why didn't the Blazers just claim him off waivers and park him on the inactive list for the rest of the season?

They probably should have - even if it meant cutting forward Shavlik Randolph before all contracts became fully guaranteed.

Of course there was risk on that end too - that the league might find that a conflict and rule Miles "unretired" on the spot.

At this point it's hard to predict how the Darius Miles conundrum will be resolved.

We'll see if anyone decides to call Portland's bluff . . .