(CBS) The Bulls have cleared more cap space by trading reserve forward Anthony Randolph to the Magic, sending along two second-round picks so that Orlando will absorb the $1.825 million left on the final year of his contract, according to multiple reports. Chicago will receive Milovan Rakovic, the Tribune’s K.C. Johnson reported.

The move will open up about $1.3 million of cap space for Chicago, assuming it would fill Randolph’s spot with a young player on a minimum contract.

By all appearances, that money is needed to go toward new signees Pau Gasol and Nikola Mirotic. Gasol’s contract is reportedly three years and $22 million-plus, while Mirotic’s is reportedly three years and $17 million.

Prior to the Randolph trade, if the Bulls were to use the amnesty provision on Carlos Boozer — which is a foregone conclusion if they don’t find a surprising trade partner by Wednesday — they were projected to have between $10 million-$11 million in cap space. That wouldn’t quite be enough to pay Gasol and Mirotic while staying under the cap, so that’s a logical reason why Randolph had to be moved.

Reserve big man Greg Smith was also officially traded to the Mavericks on Monday. He is owed $948,163 next season, so that will help clear a little space as well. The Bulls received 6-foot-9 forward Tadija Dragicevic in the deal. He’s been playing in Europe and has never appeared in an NBA game.