TUESDAY, 9:57pm: Wojnarowski reports that the final hurdle for a deal that would send Gay to Toronto hinges on finding a third team to take Calderon's contract. He adds that within the deal's current framework, the Grizzlies are likely to receive another young Raptors player along with a future draft pick. Terrence Ross is not one of the names being considered, as the Raptors have reportedly deemed the rookie untouchable.
8:11pm: Ryan Wolstat of the Toronto Sun says that the Raptors have little interest in taking additional salary in the form of Darrell Arthur's contract, and thus a third team would be needed if he were included into discussions.
12:46pm: As they try to find a way to land Gay, the Raptors are engaging teams about a possible three-team deal, but are having trouble finding a taker for Calderon, according to Adrian Wojnarowski of Yahoo! Sports (via Twitter).
MONDAY, 7:00pm: The Grizzlies are engaged in active trade discussions with the Raptors centering on Rudy Gay, reports Marc Stein of ESPN. Stein says that while the Raptors are Gay's most active suitor, no initial framework for a deal has been agreed upon. Stein confirms that, due to last week's trade, the Grizzlies feel that they no longer must trade Gay and can instead wait and consider more fair value offers.
The Raptors have been determined in their pursuit of Gay and also are interested in Grizzlies forward Darrell Arthur. Toronto is offering up Jose Calderon and third-year forward Ed Davis as two of the main pieces in a potential deal.
Stein says that the Celtics have also inquired on Gay's availability, but was told that they balked at the prospect at giving up Paul Pierce in the deal. In light of Rajon Rondo's injury, Stein was also told that Boston would be more likely to pursue Kyle Lowry and his cap friendly deal than Gay and his bulky contract. As talks heat up, Stein says, more teams could become involved in a potential deal.
Grizzlies' coach Lionel Hollins, as well as several of the team's players, have reportedly lobbied management for a chance to play the season out as currently constructed. But the Memphis front office is worried about its ability to improve the roster in future years, Stein says, and is subsequently seeking first round picks in any deal.