The Orlando Magic rumor mill is churning and it’s being powered by Otis Smith’s phone calls.

The Magic have been involved in trade talks with a number of teams and it appears that changes to the roster will be made after Orlando dropped five of their last six games. Smith understands that he must shake up the roster if the team wants to compete with the Eastern Conference’s elite teams and he has been working the phones in recent days.

The first in what could be a series of moves may already be done. Sources close to the situation believe that a deal that would bring Gilbert Arenas to Orlando has been completed and an announcement is expected today. Sources close to the Magic had hinted that a deal would be finalized this weekend with a new player making a debut on Monday and Arenas told several people close to him that expected to end up in Orlando.

It is still unknown which player the Wizards would receive and while many think it will be Vince Carter, there is a growing belief that Rashard Lewis will be the Magic player dealt. Talks between the Wizards and Magic had taken place since the summer, but Orlando’s recent rough patch helped discussions along.

The Magic continue to shop Vince Carter and Marcin Gortat which has led some sources to believe that the team could complete a second trade with these chips.

League sources confirmed that Smith has talked with the Phoenix Suns, Portland Trail Blazers, and Denver Nuggets. Orlando has had discussions with the Suns about a deal that would bring Hedo Turkoglu back to Florida. Lon Babby, the president of basketball operations in Phoenix, allegedly didn’t make the trip to Dallas recently so that he could continue working the phones.

The Magic continue to pursue Carmelo Anthony and while sources close to the forward believe he would sign an extension in Orlando, it will be difficult for Smith to put together a package for the superstar.

Orlando hopes that Anthony will force Denver’s hand by telling interested teams like the New Jersey Nets that he won’t sign an extension with their organization. This would limit the Nuggets’ options as the trade deadline approaches and could force them to settle for one of the teams on Anthony’s wish list as a trade partner rather than losing him this summer without receiving anything in return.

While a second deal isn’t imminent, the Magic will continue to work the phones and weigh their options.

One league source believes the roster changes in Orlando are being made to appease Dwight Howard, who hasn’t been in a rush to sign a contract extension with the organization. Howard could opt out of his contract after next season and the Magic will do whatever it takes to keep their franchise player happy.

"I think they know they have to make a play since Dwight will be a free agent soon," said one source.

Howard has an increased interest in larger markets after witnessing the opportunities and advantages available to players in those situations, according to sources. The Magic feel that they have to win and keep Howard happy otherwise he may join the group of superstars that have recently changed addresses.

Over the summer, Howard reportedly gave Smith a list of players he would like to see on his team. While none of the players on the list, which included names such as Carlos Boozer and Chris Paul, ended up in Orlando, the center continues to influence decisions made by the front office.

Though Orlando’s recent struggles were the final straw, it appears Howard’s feelings could be what truly motivated Smith to make these moves. The Magic will continue to work the phones in the coming days, weeks, and months and the rumor mill will continue to churn. But don’t be surprised if the first domino falls in Orlando sometime in the next twenty four hours.

Brandon Roy’s Trade Value: There’s no question that Brandon Roy is one of the best players in the league when healthy. But the last two words in that sentence are very scary to executives around the league.

If reports that Roy is demanding that either he or Andre Miller be traded are true, it’s important to note that the Blazers will have a very difficult time receiving equal talent in return for their franchise player. Until recently, putting Roy on the block would have resulted in plenty of phone calls and offers from executives around the league.

{AUTHOR_BOX}But Roy hasn’t looked like himself this season and has been limited due to issues with his left knee which was operated on in 2008. The Blazers have examined and drained his regularly throughout this season and some wonder if Roy will ever be the same player.

Teams will be hesitant enough to put together a package for Roy knowing that he may never fully recover from his recurring knee problems. But the move is even riskier when you consider that the guard’s knees aren’t covered by insurance since his issues are the result of a pre-existing condition. The insurance policy on Roy’s $80 million contract has an exclusion for his knees which spells even more problems for his trade value.

With Roy’s recent struggles, the Blazers would already be selling low on their franchise player. But through in his health problems and lack of coverage on his knees and it becomes clear that Portland will have a very tough time finding a deal that makes moving Roy worth it.

The Blazers may be better off moving other veterans such as Andre Miller, Marcus Camby, and Joel Przybilla while crossing their fingers that Roy returns to his normal self. If he does that, Portland may be able to turn things around or at the very least, sell when Roy’s trade value isn’t at an all-time low.