Rockets emerge as third team in Pau Gasol trade talks between Bulls, Lakers

After whiffing on Chris Bosh yesterday, life goes on for the Rockets. With their newfound cap space, Daryl Morey has gotten to work, and is reportedly engaged with the Chicago Bulls and Los Angeles Lakers in a three team deal that would send Pau Gasol to Chicago in a sign-and-trade.

Bulls advancing in S&T talks for Gasol, has involved Houston now as third team.

— K.C. Johnson (@KCJHoop) July 12, 2014

If this is going to happen, it has to happen quickly. The Rockets have less than 24 hours to decide whether or not they will match Chandler Parsons' offer sheet, at which point they will lose the vast majority of their cap space (assuming they do match). The Bulls and Lakers both likely have other business to do, so it is in everyone's best interest to get this done today.

For the Rockets, they are likely going to be absorbing Mike Dunleavy into their cap space to help fill a hole on their bench that has been a problem ever since they signed James Harden. They tried to sign Dunleavy last off-season, and he is an excellent shooter who could really help as a sixth man. They also could use Dunleavy as a low-cost replacement if they are to jettison Parsons, but I suspect their motivation is to use him as a bench player.

[Edit: Dunleavy is reportedly not in the deal. I wonder if the Rockets would be willing to accept Carlos Boozer on a one-year rental.]

Expect to hear a lot of news from the Rockets in the next day. They have a lot of work to do.