Trade/dump Leonard, Claver, and Dorrell Wright. The first two aren't good enough to play, the last can be replaced next season by Crabbe.
And sign Smith to a partially guaranteed, 2 year contract for something like $8m/year, or whatever the cap allows.
Here's why: As we saw with the Bynum trade, even a player with ZERO player value (Chicago in effect took nothing in return in that trade), but a large, easily shedded contract is valuable. Unfortunately due to Base-Year-Compensation you can't sign your own guys to giant contracts for inclusion in future trades, but you can sign FA's to them!
But, doesn't Nolan Smith suck? Why yes he does. There is a danger that shedding a player like Bynum and allowing him to sign can come back to haunt you if you are a competitive team. But Nolan Smith isn't coming back to haunt anyone (at least, on the court), which makes it even more genius.
In fact, I would target some player on a rebuilding/tanking/less-competitive team and sign Nolan's contract explicitly to match that salary, and make him guarantee at some point near the trade deadline, making him ultra-cuttable.
My hope would be that you could get back a player that can help your playoff push and/or some picks. Now that you can't simply buy draft picks on the market, this is the next best thing, only the cash to buy the pick is going to the players instead of between owners.
Who loves this idea!? (or knows why it couldn't work?)