I haven't heard that. If the cap is $56,680,000 next year, and Portland renounces Channing Frye (which I believe they will), and two Euro first rounders (Koppenan and Freeland) from the last couple of years, then they will have $8,848,382 in cap space, so they could start with that and offer a $1,000,000 per year raise. That would allow them to offer Hedo $54,073,000 over 5 years.
The Magic can offer a max level deal for 6 years, which I believe could start at $16,000,000 a year with a $1,920,000 raise every year. So Orlando can offer way more if they want to.
If Portland and Orlando wanted to do a sign and trade, they could use the $8,848,382 in cap space, plus say Travis Outlaw and Sergio Rodriguez. All that added together would allow them to pay the $16,000,000 that Orlando could pay, assuming Portland wanted to go that high, and assuming that Orlando wanted to take back Outlaw and Rodriguez.
My gut says that Hedo would be doing well to get 5 years and $50,000,000.
I don't think Hedo is a high priority for them though. They have Outlaw, Batum and Webster as their SF, so they would need to move two of them to make it work. I believe they are more interested in a good PG upgrade. My gut says that Kurt Hinrich is a more likely option. They could offer the $8.8 million plus a $3 million traded player exemption to get it done, and Chicago wouldn't need to take back salary.
At the same time this came from an article recently from a local writer;
I bumped into Trail Blazers general manager Kevin Pritchard at a local farmers market last Saturday. He was wearing shorts and a T-shirt, and enjoying a breakfast burrito. Which is only to say that he looked like a regular Oregonian.
The cat also was working the cellular telephone.
Basketball business, he said.
Said Pritchard: "Man, seriously, if you only knew who I was talking about."
So I would say expect the unexpected.