Varejao Opts Out, Becomes Unrestricted Free Agent

Could Anderson Varejao be headed elsewhere this summer? Dan Fegan strikes again.In what is no surprise to anyone who has followed the Cavs over the past year or so, Anderson Varejao has decided to exercise his player option and opt out. Forward Anderson Varejao did not exercise the final year of his contract on Tuesday, making him an unrestricted free agent this summer, a source close to the player told ESPN.com's Chad Ford.By opting out of his deal for next season, Varejao is leaving $6.2 million of guaranteed money on the table to try and test would could be a bare market this year.It's been reported that Varejao could be seeking a contract with a per year earning of upwards of $9 million. In this economy with very few teams having that type of cap space, it's unlikely Varejao will get an offer that is around his asking price.Right now it looks like there will be 5-6 teams that could challenge the Cavs for Varejao's services and offer a lucrative contract. Those teams with significant cap room are: Detroit Pistons ($19 million), Oklahoma City Thunder ($13 million), Memphis Grizzlies ($13 million), Sacramento Kings ($7 million), Portland Trail Blazers ($9 million), and Toronto Raptors ($9 million, if they let Parker, Marion and Graham walk).Out of those teams it looks like Varejao may get a look from 3-4 teams.The Pistons have bigger fish to fry than Varejao and are looking at some top free agents.The Toronto Raptors are looking for a perimeter scorer and it's questionable how far under the cap they'll get at this point.The Oklahoma City Thunder look like they want to add a young player and make a splash in free agency, so Varejao might be a back-up plan with them needing some bigs there.The Memphis Grizzlies were rumored to be interested in Varejao last off-season so if things fall through with their other targets (reportedly David Lee) then some of that interest could be re-kindled. The Sacramento Kings were adamant about including Varejao in the Mike Bibby talks a couple years ago and that could parlay the Kings into offering all of their cap space to Varejao should their other options dry up.The Portland Trail Blazers have reportedly been looking for toughness and defense to backup Aldridge and Varejao would be a great fit there. The only problem is that he might be too expensive.The good news for the Cavs is that Varejao isn't going to garner a ton of interest from the teams with major cap room and that Varejao isn't looking like anyone's primary option. While the Cavs can't match any offer because Varejao is unrestricted, the Cavs do look like they're going to put re-signing Varejao as their #1 priority and should get it done if Varejao keeps his demands reasonable (you never know with Dan Fegan).It's been speculated that the Cavs might be willing to pay up to $9 million per year for Varejao but that might change once he hits the open market and the Cavs see what's available.The right thing for the Cavs to do would be to re-sign Varejao at a reasonable price. (P.S - And no, re-signing Varejao to a long-term deal doesn't mean the Cavs won't have 2010 cap space and not be able to sign Bosh. The 2010 cap space is an illusion and there's no way the Cavs will be able to have enough cap room to field a competitive team. So don't be worrying about that.The problem with Varejao will be determining his value to the team. While I'm sure Fegan and Varejao see it as one thing, I'm also sure the Cavs see at as another.Varejao is a good player but he's not worth $8.5-$9.5 million a year. Maybe if it was on a short-term deal (2-3 years), then it could be possible. But there's no way I can see the Cavs paying him that type of money over a long commitment.Varejao's worth is probably in the $7.5 million range (give or take a half million) for a decent amount of years. If Varejao and Fegan can't come to grips with reality, then the Cavs will probably be forced to either do a one-year deal at a high rate or sign-and-trade Varejao.While the Cavs may not want to sign-and-trade Varejao, it may ultimately come down to that.The one good thing is that Danny Ferry and Dan Fegan have since repaired their relationship since they hit rocky times last summer while negotiating Varejao's previous contract. Having a good working relationship is critical in working with agents and crossing the line when the two parties start getting into uncomfortable territories.So will Varejao end up staying with the Cavs? Right now it's anybody's guess but with the way the market looks and how bad the Cavs want Varejao back, it looks like it's in the Cavs favor.