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Source: Rockets Dangling Lee, Scola In Negotiations; Martin Not In Play

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I'm aware that Sam Amick, Marc Stein and Chris Broussard have been all over this before I got a chance to sniff, but a source who is very close to the Rockets has confirmed to me that Kevin Martin is not on the table in the Carmelo Anthony discussions. Such appears to be common knowledge by now, but in case anyone needed some extra confirmation, that is indeed the case.

Additionally, I've been informed that, as of this past week, discussions have ranged from packages including A) Luis Scola, Courtney Lee, Jared Jeffries and either Jordan Hill or Patrick Patterson for Anthony, and B) Shane Battier, Jeffries, Lee, Hill/Patterson, and one or more draft picks for Anthony.

The source 'doubts anything will get done,' but insists that Martin is not on the table and that this is where the Rockets currently stand.

Read Mike's article below for a nice take on the situation. With the news coming out that the Bulls won't be parting ways with Joakim Noah, they're likely out of the sweepstakes. There's a good chance it will come down to New Jersey, New York and us, though I can't imagine the Knicks could make a better offer than the Rockets can. Then again, as I've said before, should the Los Angeles Clippers decide to formally enter the sweepstakes, the Rockets won't have much of a chance.

But, hey, as long as K-Mart stays, I'm okay with anything. However, in the off chance that Morey's current offer somehow reels in Melo, what would this mean for the Rockets' playoff chances. Do you think that they would benefit from such a move despite the loss of depth? Fire away in the comments.

Update (12:19 pm):

It appears the Nuggets have worked their way into a potential four-team deal involving Andrei Kirilenko, Derrick Favors and multiple first-round picks for Anthony. This trumps anything the Rockets could offer at this point. At the same time, the Nets will have to part ways with point guard Devin Harris, leaving a thin team for Anthony to play with. This could throw a wrench into the equation should Anthony decide not to sign an extension with such a talent-depleted roster.