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"I shot McGrady into the air, He fell to earth I knew not where"
(With great apologies to Henry Wadsworth Longfellow)

T-Mac is heading out of Houston with his $23 million expiring contract. Never mind that he's never gotten it done in the playoffs (neither had Kevin Garnett until he found the right fit), that he's coming off a long injury layoff, or that he hit 30 and was already slowing down before his injury - some team, somewhere is going to want to get a piece of McGrady.
Why?
Well, this fits under two categories.
1. Maybe a team that's on the cusp of the playoffs decides that McGrady puts them either up a notch, or gets them into the playoffs...
2. The real value in McGrady's contract is... his contract.  The nearly-$23-million is the largest in the NBA, and it expires post this season.  So any team looking to make a splash in the FA pool this summer could have the opportunity to clear some major space with McGrady on their roster.

tracy-mcgradyBack to Houston.
The Rockets have made it very, very clear that they want no part of him. T-Mac has a lot to prove to a lot of people and would love to show the Rockets that they have made a huge mistake.
The big questions for me are:
  • Who has the money for him?
  • Who is the best fit?
  • Who needs him the most?
  • What are the Rockets looking for in return?
There is plenty of speculation out there about where he'll end up. I see 6 possible players and list them in descending order of possibility (IMHP) -
6: New Jersey - The Nets have got to do something, anything to show that they looking to improve this team and haven't given up on the fans. They will likely make a pitch, but I don't see T-Mac ending up in Jersey.
5: Minnesota - The T-Wolves have expiring contracts (Mark Blount, Damien Wilkins and Brian Cardinal) but the Rockets probably aren't interested in any of them. Minnesota most likely won't be interested in adding anyone to sweeten the pot.
4: Miami - Heat - get D-Wade some help, send Jermaine O'Neal's expiring contract the other way? Probably not going to happen, but who knows????
3: Sacramento - The Kings have been interested in T-Mac for a while and a trade for Kevin Martin might make sense for both teams, although the difference in the value of the contracts could be an issue.
=1: Chicago - the Bulls have been named as the major suitors for a couple of weeks now. Any package involving a combination Salmons, Heinrich, and Deng could work here.
=1: New York - the Knicks have nothing the Rockets want, but T-Mac could get the Knicks back into the playoff picture. A 3-way deal could be in the winds...

In the end I think T-Mac isn't worth it playing-wise, the decline is going to be much faster than anticipated, but I see him ending up in either Chicago or New York.