Chucky Atkins has a partially guaranteed contract, so they can waive him and save a lot of money. I doubt Kahn gives up that option without getting someone a lot more valuable than Tony Allen in return.
I'd like Danny to sell Tony Allen to a team below the cap. Just give them $3mil so they can waive Tony, and pocket $500k for their troubles. Open up the roster spot and bring in a proven wing to backup Marquis Daniels off the bench.