At best a lateral move? What if Andy falls to injury, which isn't all that crazy, considering his history? What if he's an 8 and 8 guy at best by the time we're contending and what we could have drafted had we traded Andy for something like the Toronto pick is at an all-star level by that time as well and will be able to contribute for the next 10 years after that because he's only 24ish? What if our own draft pick for the 2013 draft also improved by several slots from trading Varejao? What if we win the lottery because of better odds from losing more?
There are many things that could happen that would make it a much better move to trade Varejao than to keep him. At best, we trade for a draft pick that ends up being an all-star or better, and we also get a young prospect or two out of it that could also end up being good players. Not only this, these players could be contributors for the next 15 years. In 5 years, Varejao could be washed up or retired. Our own draft pick could improve from trading Varejao as well. Moving from the 4th or 5th worst record to the 2nd or even the worst overall record would have its benefits as well even if we are worse in the short-term. After all, it's not our record this season that matters, but if we can put it all together better than any other team all in one season. Varejao's production is not going to be winning us any championships in the next 3 seasons at the absolute minimum because we simply don't have the talent, experience, and cohesion for it yet, and we really could be looking at 5+ years down the road.
Oppositely, Varejao could be very productive late into his 30s, make a bunch of all-star appearances, and the Toronto pick is used to draft a bust as are Lamb and PJIII (if we were to do that trade). Sure, that could happen. But I'd rather put my money on netting some young prospects/high picks for Varejao while we can because I believe that the potential rewards outweigh the risks. Some may disagree with that, but that's how I see it. I think that, when we're deep into the playoffs 5 years from now and especially beyond, whatever we could trade Andy for is more likely to be more productive than Andy himself.
I'm fine with taking on players with our cap space though for more picks. That's not a big deal to me, but I was just pointing out that we could use it to sign players. If using our cap space in trades means more picks, then I'm all for it. We are not yet in a situation where we can have too many picks, so I'm all for taking on salary for more picks and/or trading Varejao for picks.