found this on another forum, hope it clears things up. Basically, the Lakers' hands are pretty much tied behind their back on what moves they can make.
"LA3pete asked for a breakdown of the cap situation and what's possible and realistic, so I'll take a stab at that with an FAQ.
1. What can the Lakers spend?
Lakers are over the cap with Shaq and Kobe alone, so even if they let the entire roster go but the Combo, they'd still only have the exceptions to use in free agency. And no player can take a pay cut like in the NFL. NBA salaries cannot be restructured down.
So they can ONLY spend the following in free agency:
MLE (mid level exception) can go to one player for 4.6 or split among several whose collective salaries would total no more than 4.6.
LLE (lower level exception) can go to one player for 1.5. There have been erroneous reports that the Lakers used the LLE on Slava, not true. They used a portion of early Bird to re-sign him in 2002. They still have the LLE to use this summer.
Vet minimum (0.8 to 1.2) amount depends on the number of years the player's been in the league. No limit on the number of vet minimum deals you can offer.
While it's possible they could apply for a disabled player exception for Fox (would be 2.4) it's very unlikely on two fronts. First, Dr. Buss is already paying luxury taxes and has committed to using the MLE and LLE. To add the DPE adds another 5M to the payroll after taxes, so it is very unlikely LA will apply for it. In addition Fox won't be out for the whole season so the chances are the NBA would reject it anyway.
No exceptions can be combined. Can't add the MLE and LLE together to offer Arenas 6.1, not allowed.
2. Can the Lakers get two impact free agents? People keep saying Payton and a 4.
Pretty unrealistic. They can use the MLE for one (Malone, Howard, Brown), they'd have to trade for the other. And the only trade bait is Fisher (3), Slava (1.5), Rush (1.1) and Pargo (.4). 6M isn't much to work with and none of those players are in high demand. Adding cash to a deal is allowed up to 3M, but none of that money can be used for salary matching. Even if a player like Payton was willing to force a deal here, that team may decide to just let the free agent go instead.
3. Is there any way to get Gilbert Arenas?
.0000000000000000000001 chance. Gilbert has to force a trade here, turning down 2.5M more from Denver, and the Warriors have to agree to sending Arenas to LA, which also isn't going to happen. A young player isn't going to walk away from more money and the Warriors aren't going to deal Arenas here. Give it up. He's not coming. Let that go.
4. Are there free agents that are out of reach?
Any Clipper but Pike is impossible, they're all restricted and the Clips would match an MLE offer. All young restricted or team option free agents that are starting or play major roles - Arenas, Posey, Terry, Kenny Thomas et al. All impact FA's that will get more money than MLE - Kidd, O'Neal, Kandi, Brad Miller, Clippers.
5. So who can the Lakers get for the MLE?
Malone, Howard, Brown, Mourning, maybe Payton. Lakers have hinted that the MLE will go to a 4
6. What about the LLE?
While they had hoped to use this on Pippen, Portland is reportedly offering him 5M per to stay. Pippen is money first, he'll take 5 in PDX over 1.5 in LAX in a heartbeat.
Zo will get more than LLE money, have to use the MLE or part of it.
Possible LLE candidates range from 3 shooters like Voshon Lenard and Eric Piatkowski to a quick points like Ty Lue, Speedy Claxton or Travis Best, power players like Brian Skinner, Jerome Moiso or Predrag Drobnjak, or maybe they can get DerMarr Johnson, but he's a long shot.
Walter McCarty is often mentioned, but he has said he wants to stay in Boston and they want to keep him. It would take more than the LLE to get McCarty, so he's out of reach. Same thing with Stephen Jackson and Raja Bell.
7. What about vet minimum?
Lakers probably go shopping for a backup center here. Sean Rooks has been a Laker and they like his game. There's other possibilities but no one that would blow anyone's socks off.
8. What about trades?
Gary Payton, Jason Terry and Sam Cassell are all rumored trade targets, and guys they consdidered at the deadline like Nazr Mohammed would also make sense. Again Fisher, Slava, Rush and Pargo are the most likely trade bait. Devean needs to stay with Fox out, and Fox can't be dealt because he's hurt. The rest are all free agents or the untouchable duo.
That trade bait is not going to be enough to get Gary Payton.
They can try to trade to move up in the draft for someone like Barbosa or Hinrich, or trade down for multiple 2nd round picks (NY and Atlanta have two high #2's). A trade up would probably include Rush, or Fisher with a pick and an unwanted contract coming back.
9. Can they re-sign Horry for less and then trade him to Houston?
Only if it's a multi-year deal. If it's a one year deal they couldn't trade him, arcane CBA rules. In theory they could exercise the team option at 5.3 and try to shop him as a last year contract, but Horry isn't worth that, would be very hard to deal him. They'll try to re-sign him for less, and if Rob doesn't like the offer then it gets sticky. I think he'll be back.
10. What about the draft?
Lakers have 24 and 32. Need everything but a 2. Best available at 24 will obviously depend on who drops. Reece Gaines would be a great fit as a tall initiator, and Mitch likes Zaur Pachulia a 4/5 Euro with size that can board. Lot of value at 32 can go anywhere with that. Since free agency can't get young quick athletes that can defend, they would be wise to address athleticism speed and defense with at least one and preferably both picks.