The Toronto Raptors have signed Lenis Kleiza to a four-year, $20-million offer sheet.

While this means very little by way of increased competition for the Miami Heat next season, it has far-reaching implications for both its All-Star power forward and its potential future Hall-of-Fame small forward.

At the start of the free agent signing period at 12:01 this morning, the Raptors had total maximum available room of $9,782,964 under the salary cap. The team also had a pending commitment to Amir Johnson on a 5-year, $34 million contract. The first year salary on such a contract, by league rule, can be no less than $5,619,835.

As you undoubtedly know by now, an accepted offer sheet is a binding contract between player and team. Therefore, when a team puts forth an offer sheet, it must have reserved the requisite room within the confines of the salary cap. In the Raptors’ case, the offer sheet to Kleiza would start at no less than $4,716,981, making it ethically impossible utilizing the team’s cap space (i.e., impossible without reneging on Johnson).

What does this mean?

It means the Raptors have chosen not to maximize cap space. It means the Raptors have instead decided to enter free agency over the salary cap threshold. It means Johnson will be signed utilizing the team’s Larry Bird exception. And it means Kleiza’s offer sheet was extended by utilizing the vast majority of the team’s mid-level exception.

Best of all, it means the Raptors have now completely lost all leverage in a potential sign-and-trade transaction with the Miami Heat.

If Toronto elects not to engage in such a transaction, it will have virtually no additional room with which to add any outside free agents (its $2.1 million bi-annual exception, as much as $1.1 million remaining of its mid-level-exception, and as many minimum salary contracts as its collective heart desires) for at least the next seven days. The team’s free agency period would, barring any unforeseen trade with seemingly undesirable trade pieces, effectively be over.

Additional room can only come from engaging with the Heat in sign-and-trade discussions. That means the Heat can now basically dictate its terms to Raptors’ general manager Bryan Colangelo. That means no first round draft picks will need to be surrendered. That means Michael Beasley’s salary can be jettisoned, unless you feel that Toronto would be willing to forgo the second year talent and an $11,606,668 trade exception, and instead lose its best trade asset for nothing.

That means Pat Riley can now threaten the man who just two days ago was rumored to have threatened to derail the Bosh-to-Miami scenario by refusing to engage in such sign-and-trade discussions. Payback is a five-letter-word.

That means, if Riley chooses to exert his leverage over an outmatched Colangelo, the Heat can produce the required cap space to offer three max contracts.

Two are reserved. All common logic would now suggest that Lebron will take the third. We’ll find out at 9:00 pm.

Per Newsday’s Knicks beat writer Alan Hann:

After more than two years of planning and preparing, of salary dumping and cap-carving trades and wishful thinking, the Knicks may well find out that it was still not enough to land LeBron James.

According to multiple NBA sources, the two-time MVP Thursday night is expected to choose the Heat, where he would join fellow All-Stars Dwyane Wade and Chris Bosh.

Did you ever dream of a scenario so absurdly wonderful?

As we were all calmly processing the news that Chris Bosh will be joining Dwyane Wade here in Miami, and as we were all eagerly awaiting the conclusion of the Lebron James saga, Commissioner David Stern shocked us all by announcing Wednesday night that the salary cap for next season will be $58,044,000, nearly $2 million more than was projected just two months prior.

The new number, although a considerable increase from initial doomsday projections of $50.4 million issued one year ago, hasn’t created much fanfare around the league. That’s probably because it has absolutely no effect on 2/3 of its teams. But it could very well have a major impact for the Heat in its off-season planning. Read more…

Ray Allen and the Boston Celtics have agreed upon a two-year, $20 million deal, his agent Lon Babby confirmed. The second year of Allen’s deal is a player option.

It was widely hoped that Allen would consider accepting a minimum contract in order to join a Wade-James-Bosh trio in South Florida. At one point, it was speculated that LeBron James had contacted Allen about the possibility of doing just that.

Frank Isola of the New York Daily News reported on June 30:

LeBron James is calling the possible union of Dwyane Wade, Chris Bosh, and himself, “Dream Team.”

Those were the words James used when he reached out to another free agent in the past 10 days and pitched the idea of joining them.

He said, “Would you be willing to take less to join Dream Team?” the player, who did not want to be identified, told the Daily News. He said his people were putting it together.

The Miami Herald’s own Jorge Sedano followed it up with:

I’ve come across a source who has told me that free agent player could be Ray Allen. The source tells me that Allen has spoken to James and his preference is to remain with the Celtics, but that’s predicated on Paul Pierce remaining with the team. The money is not a huge factor. Winning more championships is the most important factor.

According to the source, Allen has spoken to James and would consider joining said, “Dream Team.” Along with possibly taking less money if it was the perfect opportunity.

Apparently, it wasn’t the perfect opportunity. Oh well.

Mere hours after Chris Bosh committed to the Miami Heat, the Bulls secured their consolation prize – locking in Carlos Boozer to a long-term deal.

Per Ric Bucher of ESPN:

Carlos Boozer is the latest domino to fall, agreeing to a five-year, $80 million contract with the Chicago Bulls, a source close to the negotiations told ESPN The Magazine’s Ric Bucher on Wednesday.

Boozer follows agreements by premier free agents Dwyane Wade and Chris Bosh in Miami, Amare Stoudemire with the Knicks and Joe Johnson in Atlanta.

The 5-year, $80 million contract equates to an average of $16 million per season. For Boozer, it was approximately $11.4 million short of the maximum.

Boozer represents a nice back-up option for the Bulls. He’s certainly not to be mistaken with a member of the Trifecta, but he’s an ambidextrous scorer at the rim and a fierce rebounder at both ends of the floor. Of course, he’s also a man who has missed the season opener in three of his eight NBA seasons, and one who doesn’t much like to defend.

One can’t help but take notice at how his contact breaks out. It was likely structured with the maximum 8.0% annual raises, which would make his 2010/11 salary $13,793,103. That’s not a random number. The Bulls now have committed salaries totaling $36,644,079, enough, after incorporating roster charges, for a full maximum contract player (with $45,389 to spare at current cap projections).

Lebron’s mind is likely already made up. Anecdotal evidence suggests he has chosen Miami, the third part of the coveted holy trinity. If there remains any doubt, however, the Boozer addition in Chicago could make things interesting.

UPDATE: The salary cap will be higher than the $56.1M projection, according to a league executive. The moratorium ends on Thursday morning at 12:01 AM and it will be when the NBA releases its official cap figure for the 10-11 season.

Well, it’s unofficially official. Dwyane Wade and Chris Bosh each has publicly declared his intention to sign with the Miami Heat.

That leaves Lebron James as the only member of the triumvirate yet to make a decision.

There has been much discussion as to whether the Heat can actually afford to pay him the max within the confines of the salary cap. Of course, that depends on what the salary cap is.

The latest estimates provided by Commissioner David Stern, on April 16, called for a cap of $56.1 million. The final figure is expected to be released by tonight.

Keep these two figures in mind:

$55,986,936: If the cap meets or exceeds this figure, the Heat will be able to offer three max contracts IF it moves Michael Beasley and Mario Chalmers

$56,367,721: If the cap meets or exceeds this figure, the Heat will be able to offer three max contracts IF it moves Michael Beasley

Whether fans are sick of the Lebron’s self-glorification or not, he has done a good job of keeping people guessing.

It’s probably safe to eliminate the Bulls, Clippers and Nets from the running. Otherwise, the Cavs, Heat and Knicks are all still mentioned as viable candidates to sign the two-time MVP.

One theory has Cleveland emerging as the clear-cut favorite to retain James. The thinking would be that even he would have the nerve to break the hearts of his hometown Cavs fans in a grueling, one-hour ESPN special (Thursday, 9:00 pm). It just seems so unreasonably cruel. But then it was reported that James had long planned some kind of agreement with ESPN regarding his much-hyped free agency, well before the notion that James would even consider leaving Cleveland surfaced.

If Lebron’s sole focus is to win a championship, as he has so emphatically claimed it to be, signing alongside Wade and Bosh in Miami gives him the best chance to do it.

James tried desperately to recruit Bosh to Cleveland, with no luck. Maybe this was all a charade. Maybe it was all part of James’ exit strategy. He can now say to his hometown fans, “I did everything I could to bring an all-star caliber player to Cleveland, but it didn’t work out.”

Per Adrian Wojnarowski of Yahoo! Sports:

Official with team that made a formal presentation to LeBron tells Y! Sports: ‘It’s down to Cleveland or Miami for him.

Of course, this is only a theory.

Whatever the case, the Heat appears to be the clear-cut winners, as much for what it did get as for what its rivals did not, of the biggest free agency sweepstakes in league history.

Per Chris Broussard of ESPN:

Dwyane Wade and Chris Bosh are teaming up together on the Miami Heat, according to a person with knowledge of the situation.

ESPN’s Shelley Smith also reported the pending move through independent sources.

Whether LeBron James, the kingpin of this summer’s celebrated free agent class, will join them remains to be seen. James will announce his decision Thursday night at 9 ET during a one-hour special on ESPN.

Wade and Bosh are expected to announce their decision on Wednesday, according to the source.

If the reports are true, on July 8 the Heat will have Dwyane Wade, Chris Bosh, Michael Beasley and Mario Chalmers under contract, and $15,601,383 of remaining cap space available, of which up to $11,812,551 can be spent on any one player.

Yeah, baby!!!! None of us ever had a doubt!

The triumvirate is planning one final conference call on Wednesday to decide its fate.

Per Adrian Wojnarowski of Yahoo! Sports:

LeBron James, Dwyane Wade and Chris Bosh are expected to share a conference call on Wednesday to discuss free agency and try to move closer to finalizing their decisions, a league source with knowledge of the plan told Yahoo! Sports.

The three players are motivated to reach resolutions and make their choices public by Thursday, several sources told Yahoo! Sports. The stars and their agents with CAA continued on Tuesday to churn through numerous machinations and possibilities.

Cleveland has emerged as the clear-cut favorite to retain James. I can’t imagine that even he would have the nerve to break the hearts of his hometown Cavs fans in a grueling, one-hour ESPN special (Thursday, 9:00 pm). It just seems so unreasonably cruel.

So it could all come down to whether Wade and Bosh choose to team up in Miami or Chicago, or part ways altogether.

Bosh seems unlikely to take a discount. He wants to sign for the maximum, and he wants to do so for six full years. As it stands, the Bulls don’t have the money, and the Heat doesn’t have the required trade partner.

If Bosh can get Toronto to sign-and-trade him to Miami, you’ve got the think the Heat is in the driver’s seat. Despite the heavy-handed talk, common sense would dictate general manager Brian Colangelo would ultimately cede to Bosh’s wish, and grant him his sign-and-trade. At the very least, he would acquire a $16.6 million trade exception – and perhaps a first round pick or two – with which to make a run at a player(s) of his choosing. At the same time, he would be increasing Chris’ future salary, and thus decreasing the future available cap space of a conference rival. Not a bad combination when the alternative is losing your best and most powerful asset for nothing.

If asked for a prediction, I would say the Heat secures both Wade and Bosh, the Bulls settle on Carlos Boozer, the Nets wind up with David Lee, and the Knicks are left to scramble for a bunch of overpriced short-term contracts with which to surround Amare Stoudemire in the desperate hope of landing Tony Parker and Carmelo Anthony next season.

Not too bad an outcome if you ask me!

The confusion surrounding the James Jones waiver has been eliminated.

Jones has accepted a $4.952 million buyout, a $1 million reduction from his $5.952 million partial guarantee.

On June 29, the Sun-Sentinel reported it as follows:

Because of the way Jones’ 2010-11 buyout payment will be amortized, his hit against the 2010-11 NBA salary cap will be $1.5 million, opening unexpected additional space.

However, the amortization schedule of a buyout payment has no impact on a player’s charge against the salary cap, leading to doubt as to whether it was simply unfounded speculation.

Your author suggested it to be more likely a reduced buyout. This is what has happened. The reduced buyout will be charged against the salary cap as follows:

2010-11: $1,544,172
2011-12: $1,650,667
2012-13: $1,757,161

The $1,544,172 charge produces a savings of $311,828 for the current off-season, and enables the Heat to potentially offer up to three maximum contracts within the confines of the salary cap.

For his kindness, the Heat will pay Jones the full buyout amount up front. In addition, Jones figures to receive a minimum salary contract from the Heat in a backup role at small forward for the coming season.