The Kings currently have about $6 million in cap space, which is almost certainly not enough to sign Ellis. The 27-year-old opted out of an $11 million contract with the Milwaukee Bucks for next year, and he likely won't take that much of a discount, especially for a non-contender like the Kings. Stein reports that Sacramento has been shopping Jimmer Fredette and Chuck Hayes to the Cleveland Cavaliers to help carve out more space.
The Cavs may not want to take on Hayes, as he's owed over $11 million the next two seasons and would cut out cap space in the summer of 2014. Fredette may be a more palatable option because he is essentially just a $2.4 million expiring contract.
The real question may be why the Kings would want to sign Ellis in the first place. Sacramento didn't want to pay Tyreke Evans, and he's younger and arguably better than Ellis. Bringing Ellis in could possibly stunt the development of No. 7 pick Ben McLemore, while backup shooting guard Marcus Thornton replicates some of what Ellis brings to the table. Ellis likely makes the Kings better, but not enough to be an actual contender out West.
The Atlanta Hawks and Denver Nuggets have also shown interest in Ellis, although other moves could take them out of the running. The Hawks and Milwaukee Bucks are discussing a possible sign-and-trade swap of Jeff Teague and Brandon Jennings, while the Nuggets may be close to acquiring Randy Foye.