Dave at Blazer's Edge has written a very thorough article on the Blazer's cap, and the implications on it, of various options. It concludes with Dave's best guesses about what the Blazer's will do. It is long, but clearly written.
http://www.blazersedge.com/
http://www.blazersedge.com/
Travis Outlaw doesn't leave the same sized roster hole as Blake does but he's younger, has more potential, and is worth more in trade. The question here is, "In a worst-case scenario (i.e. you don't care about his talent and are just extending him to trade him) do you think Travis is worth more than $3.6 million in trade value?" In almost every conceivable case the answer is going to be yes. Therefore there's virtually no chance you'll see the Blazers release Travis outright to save $3.6 million in flexibility. Because of this for all intents and purposes you can consider Portland's open cap space no greater than $9.8 million.
As long as Channing is not signed he counts against the cap for $9.5 million, either substantially reducing or completely eliminating Portland's cap space for the summer, depending on who else they retain. One solution is for the Blazers to release him outright, not issuing any qualifying offer and not retaining any rights to him. In that case he has no hold on Portland's cap anymore. Another solution is for Portland to extend the qualifying offer to hedge bets (they could retain him later on if there were no better options) knowing they could rescind the offer at any time before late-July without prejudice and at any time after that with Channing's agreement. Either one of these seems a likely solution. We may hear before the end of the month that the Blazers and Channing are parting ways. We may hear that Portland has extended an offer. This doesn't necessarily mean that they're going to keep him.
What Do You Do About the Draft?
This depends on what kind of deals you think you can make and how valuable cap space/flexibility is to you when making those deals. If the Blazers are in a position where they need every million they can get in cap room then they need to trade out of this draft or at least avoid moving higher. You'd get about a million by getting out of the draft. You'd get up to $1.6 million more by renouncing your rights to your overseas prospects (Koponen and Freeland). You only do these things if you know that last $2.5 million in space is critical, but they can be done.

