The Memphis Grizzlies have traded forward Rudy Gay to the Toronto Raptors in exchange for point guard Jose Calderon, forward Ed Davis and a second round draft pick in the 2013 NBA Draft.
Additionally, the Grizzlies will send Calderon to the Detroit Pistons in exchange for forwards Tayshaun Prince and Austin Daye.
Gay had reportedly been on the trading block for several weeks, as Memphis' new ownership group looked to avoid reaching the luxury tax threshold after this season as the tax penalties begin increasing at an exponential rate.
Over 42 games this season, Gay has averaged 17.2 points, 5.9 rebounds and 2.6 assists. The 26-year-old, who was the eighth overall pick in the 2006 NBA Draft, has produced career averages of 17.9 points, 5.8 rebounds and 2.0 assists per contest.
"This is the type of deal we have been looking for to take our team another step forward," said Raptors president and general manager Bryan Colangelo. "Rudy Gay is a dynamic wing that elevates our talent level significantly."
Calderon, an eight-year veteran from Spain, is averaging 11.1 points and 7.4 assists per game this season.
Davis, Toronto's first-round selection in the 2010 draft, is averaging a career-high 9.7 points per game this season.
Prince, who was Detroit's final remaining member of the 2004 NBA Championship team, is averaging 11.7 points per game, and Daye is scoring 5.1 points per contest.
The Raptors will also receive Hamed Haddadi, the first Iranian-born player in the NBA. In 134 career games -- all with Memphis -- the 7-foot-2 center has averaged 2.0 points and 2.1 rebounds per game.