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I think you need to read the second paragraph a little more closely, Denny:
At most, the Blazers get to reduce the amount they're on the hook to pay Brandon by 50% of his new contract less $762,195. Even in the case of the vet's minimum, Brandon makes almost $900K a year more. I would think he'd be able to get considerably more than the minimum (undoubtedly with some sort of a reduction if he can't play because of his knees), so he's likely to make somewhere between $1.5 to $3 mil per year more than if he just stayed retired.
I assume he signs the vet minimum. He doesn't care if the blazers pay him or some other team.
The Blazers would save $1M plus 1/2 the minimum salary for a 5 year veteran ($1.02M).
So the Blazers get to set off $1M - $1.02M/2 = ~$500K. Roy makes an extra $500K.

