Source: Sixers, Rockets talking trade

An NBA source confirmed Tuesday that the Sixers and Rockets have had discussions about Tracy McGrady.

Houston is looking to deal McGrady and his expiring $23 million contract by the Feb. 19 trade deadline.

An story Tuesday claimed the Sixers "hinted at a package of (Andre) Iguodala and Samuel Dalembert for McGrady," though the source said the Sixers "didn’t hint."

"Houston is going through the league" seeking the best offer, according to the source. "Nothing is hot."

The story also said "the Sixers have not completely ruled out a Tracy McGrady-for-Andre Iguodala deal. The Sixers are contemplating a fire sale if their losing persists."

The source indicated that may be off-base.

McGrady, the league’s highest-paid player in 2009-10, had microfracture knee surgery last Feb. 24 but is healthy now.

The Rockets are believed to have interest in packages from teams such as the Bulls (Joakim Noah) and Wizards (Caron Butler), among others.

The salaries of Iguodala ($12.2 million this season) and Dalembert ($11.5 million) match McGrady’s within the allowable 25 percent trade differential. But Houston would have to be willing to pay Iguodala and Dalembert a combined $68.5 million beyond next summer.

Such a swap would take the Sixers from a $65 million payroll in 2010-11, which exceeds the expected salary cap of roughly $55 million, to about $14 million under the cap.

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