UPDATE (10:14 PM EST): One more confirmation of the initial reports, courtesy of Michael Lee of the Washington Post:
The rumor that will never die has regained new life, as Adrian Wojnarowski of Yahoo! Sports is reporting that the Wizards are engaged in serious discussions with the Orlando Magic to acquire Gilbert Arenas. According to the report, discussions have intensified in recent days, but the parameters of the deal are unclear. But a league source said late Friday night, “It’s very close. A really strong possibility.”
10:05 PM: The Magic’s only win in their last six games has come against the Clippers, and the efficiency differential in four of those five losses has been in double-digits. Orlando, ladies and gentlemen, is in a rut, and due for a change of some kind.
That change may not have to come from within. According to Evan Dunlap of the Orlando Pinstriped Post, an unnamed source has intimated that the the Magic are likely (“70-80%”) to complete a deal as early as tomorrow. Additionally, Adrian Wojnarowski of Yahoo Sports reported that trade talks between the Magic and Wizards have intensified of late, and that the teams are in serious discussions on a deal that could send the highly paid Gilbert Arenas to Orlando.
At best, Arenas would seem to be an odd fit with the Magic; he’s no more natural when paired alongside Jameer Nelson in Orlando than he is with John Wall in Washington. Still, if Otis Smith and Stan Van Gundy have diagnosed perimeter scoring as the Magic’s glaring flaw, Arenas could conceivably give them a boost in that specific area.
In exchange, Orlando could offer a number of distinct trade packages. Vince Carter remains a reasonable candidate to be moved due to his quasi-expiring contract, but players such as Marcin Gortat, Brandon Bass, and Ryan Anderson could also be included in a possible deal.
There’s no use getting terribly specific in the analysis of a potential move without more details as to which parts would be included, but look for more in this space as further reports become available.