Even though all signs point toward Rasheed Wallace retiring this offseason, he has not yet officially filed his retirement papers, which means the Celtics are allowed to trade his contract. If GM Danny Ainge is able to move the 15-year veteran's rights, which he is reportedly trying to do, it would allow the team to keep their midlevel exception. A midlevel exception that would then possibly get used on J.J. Redick, a restricted free agent with Orlando.
Wallace has yet to file retirement papers, so the $6.32 million owed him next season and $6.79 million in 2011-12 would come off a team's books after Wallace is traded to them. They could do a deal and not take on his money. Ainge is trying to use the Wallace contract to bring back a power forward or center to replace Wallace and the injured Kendrick Perkins.
The Celtics could then use their midlevel exception for a different player. Several sources believe that Ainge's target is Orlando's J.J. Redick, who is a restricted free agent.
Though SB Nation's CelticsBlog speculates that the money freed up by trading 'Sheed's contract would be used on a replacement big man rather than Redick.
it could be that Rasheed Wallace's contract gets used to trade for a wing or shooting guard. If that is the case then his contract would then open up the Celtics to use the MLE on a big man that would be available such as Brad Miller, Jermaine O'Neal, Erick Dampier(he will be a free agent before this summer is very old), Brandon Haywood, or some such player.