I'm not sure how Navarro counts against their cap, but assuming they renounce Warrick (which they still haven't done), they'll be about 10-11 million under the cap.
This means, they still have enough money to use on him if needed be to sign him.
It all depends on how much money the player they're interested is going to make (rumored to be Iverson). About 7 million sound alright? They could still use those 3-4 million on Warrick if he doesn't get better offers, which is about what his qualifying offer is.
But as of right now, they still have his Bird Rights, which means if Warrick wants to get good offers, he'll probably be better served in a sign and trade situation.
From what I see, there are not many teams left willing to spend 4 million+.
We'll see.