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Lou Williams reportedly agrees to three-year contract with Lakers

The Lakers and veteran combination guard Lou Williams have agreed to on a three-year, $21-million contract, according to Yahoo Sports.

Williams, a 28-year-old scorer, averaged 15.5 point and 2.1 assists a game last season for the Toronto Raptors, earning the NBA's sixth man of the year award.

The Lakers will pay Williams roughly $6.7 million in the first year of his contract.

Along with guard D'Angelo Russell, Jordan Clarkson, Jabari Brown and Williams, the Lakers may be more likely to slot in both Kobe Bryant and Nick Young at the vacant small forward position.

The NBA's most recent salary-cap projection given to teams was $67.1 million. A report on CBS Sports suggested it might climb as high as $69.1 million.

If it's the latter, the Lakers have enough salary-cap room to pay both Williams and acquire Roy Hibbert in trade from the Indiana Pacers, a deal agreed to on Saturday.

If the cap is set at $67.1 million, the numbers don't quite work for Williams without the Lakers getting creative.

One option is trading away a player, like Ryan Kelly or Nick Young, to open up additional spending power.

The Lakers can also take advantage of timing. Hibbert is set to earn $15.5 million for the coming season but a trade would give him a 15% bonus, paid by the Pacers. If so, the Lakers would need to accommodate $17.8 million of their cap space to bring in the center.

Hibbert can, however, waive the trade bonus — but only if the Lakers cannot accommodate it within their cap room.  If the trade is made before signing Williams, the bonus is in effect.

Should Williams sign first, Hibbert would be able to waive his bonus — a decision that involves turning down $2.3 million — allowing the Lakers to fit both players within a $67.1-million salary cap.

In order to bring in Williams and Hibbert, the Lakers will need to renounce their rights to Carlos Boozer, Jordan Hill, Jeremy Lin and possibly Wesley Johnson, Wayne Ellington and Ronnie Price.

The Lakers still have one significant spending tool remaining, the $2.8-million room exception, after which the franchise can add players via minimum contracts.

Email Eric Pincus at eric.pincus@gmail.com and follow him on Twitter @EricPincus.

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