From Ken Berger, CBS Sports:
UPDATE: League sources say a third team is involved, with the Suns possibly contributing Hedo Turkoglu to the equation. The Magic, trying to make a bold move to close the gap with Boston and Miami, would wind up with Arenas and Turkoglu, who would return to the team he led to the NBA Finals before a frustrating year in Toronto. Magic center Marcin Gortat is "100 percent involved," though it's unclear whether the Magic would be sending out Rashard Lewis, Vince Carter, or both.
From Evan Dunlap at Orlando Pinstripes Reporting On Alex Kennedy's Story (Hoopsworld):
Kennedy says Orlando has engaged teams including the Denver Nuggets, Phoenix Suns, and Portland Trail Blazers to make a second deal, perhaps involving the aforementioned package of Carter and Gortat. Among the players discussed is Phoenix forward Hedo Turkoglu, who spent five seasons with Orlando, only to sign with the Toronto Raptors in the 2009 free-agency period. "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," according to Kennedy.
Turkoglu's stock has fallen inside the Suns organization with questions arising about his fit on the team. He wasn't able to adapt to playing the power forward position which took him out of the starting lineup and between Steve Nash's propensity to dominate the ball and Turkoglu's free-lancing plays with the second unit, he's not been able to find a role. There is also a perception that he doesn't play with enough consistent passion or energy although at times he's been very impressive on the defensive end but mostly only late in games.
Obviously the Hedo experiment did not work out as planned, so Turk seems to be an obvious choice to send packing among the other players with any trade value that wouldn't cripple the team. The question now remains, who or what do the Suns get in return.
The other piece in the discussion is Jason Richardson. Rich will be a FA after the season, and judging by the numbers this season, would be commanding a pretty big contract. Vince Carter is making $17 mil and change and has a team option for next season at 18 million. I don't see much sense to trade one potential FA for another right now unless it yielded a combination of a high draft pick, Bass and Gortat. The Suns won't take on any expensive long term contracts obviously.
Assuming the Suns are involved in this deal, it would seem Bass and Gortat would be the main desirable pieces. Bass is in the second year of an 18 million dollar 4 year deal and could fill in at PF while Gortat hits the backup C role. With Frye starting at PF, Bass could come off the bench at the 4, move Warrick to the 3 and send Dudley to the 2, which is not necessarily ideal for the slow footed Dudley.
Keep close to BSOTS for updates as they are reported.