Assuming guys like Howard are off the table, the only free agent I am strongly interested in is Spencer Hawes.
I would offer Hawes up to something in the range of 10-12 million per year. I think he is just coming into his own now that he is growing into his body, and I think he will be a top 5 center in this league.
Then, I would use the rest to consider trades, but if nothing presents itself that made sense, I would try to bring back some combination of KG, Ray, and Green on 1 year deals, to maintain future flexibility, so Danny is able to act when the next star becomes available.
Assuming you blow 10 mil on Hawes...
You now have 15 mil to split amongst KG, Ray and Green. Are you planning on giving them 5 mil each? Do you believe they will take 5 mil each? Letting Bass walk?
I had written this out before, so here is my whole scenario:
Lets say they renounce everyone. So, essentially they have Rondo (11m), Pierce (16.8m), Bradley (1.6m), Johnson (1.2) million signed (I will also assume Bass opts out).
So, that's 30.6 million spoken for. They would then have 2 first round picks. Lets say one mid first rounder (1.4m cap hold), one late first rounder (1m cap hold). That is 6 roster spots and $33 million spoken for. They would need another 7 minimum cap holds (we will round it to .5m per cap hold), putting them at $36.5 million. With a cap of $60 million, that gives them 23.5 million to work with to fill out the roster.
Lets say they paid a center $11.5 million (with 4.5% raises, that comes out to approximately a 4 year/$50 million deal). So, you add that to the salary and you have 48m...subtract .5 million for the roster spot they opened up and they are at 47.5 million with 7 guys...so $12.5 million remaining.
Sign KG and Ray to deals of $6 million each (or substitute Green for one of them, if he wants to sign a 1 year prove it deal). That leaves you with .5 remaining...plus the 2 minimum cap holds you gain back, so you have 1.5 million and 9 spots filled. Obviously it is a huge leap to suggest Ray and KG would take those contracts. But there is a possibility they will take a hometown discount to stay here...and there is a chance its more than they would get per year on the open market anyways, since most of the teams they would consider going to would be over the cap and would only have the MLE to offer. And they might be fine going year to year at this point in their careers.
Now you can use $2 million to sign another player to get up to the cap (the $1.5 million, I mentioned before, plus another .5 million that is freed up because you are eliminating another roster cap hold). So, that puts you right at the cap with 10 spots filled.
Use the "space exception" to sign another player for $2.5 million (maybe Pietrus?). Then fill out the roster with minimum salaried players.
So, in this scenario, you are able to pay decent market value for a top 10 center on the free agent market. You would likely have to let Green walk, unless he really wants to come back and prove himself on the 2.5m exception...although I think he would get a better offer elsewhere. You pay KG and Ray a reasonable salary given what they would make per year on the open market, but are still getting a bit of a bargain, spurred on by their desire to stay with the organization that has been loyal to them, and in the city they seem pretty happy in (at least Ray...I have no idea with KG). And you are able to field a potentially better roster next year, with a second building block next to Rondo, while keeping max cap room for 2013 to try again to add the star they need.