The Lakers and Rockets have been in talks with the Magic involving a deal for Dwight Howard.
Houston is discussing multiple trade scenarios, both as a direct trading partner for Howard and as a facilitator that would bring Andrew Bynum to the Rockets.
The Rockets would acquire Bynum while sending a package of future draft picks and cap-friendly contracts to Orlando.
The key elements, according to sources, call for the Lakers to end up with Howard and Houston to finally get a top-20 player in Bynum.
Houston can likely absorb the contract of Jason Richardson.
The trade components were originally reported by Eric Pincus of HoopsWorld.
Sources say Magic GM Rob Hennigan may prefer acquiring young players and picks than taking on Bynum and attempting to convince him to sign long-term.
The Nets continue to work on a deal of their own to acquire Howard, but the complexities of involving so many players being moved via sign-and-trade have led to a standstill.