The Bulls are still intent on trading Kirk Hinrich and opening even
more cap room for the summer. That's their top priority in the final
hours before the deadline.
McGraw goes on to speculate on the Kings possibly dealing with the Bulls or Knicks and moving McGrady on to one of those teams. With the Kings dumping Martin's salary they may be willing to take some salary back that extends into the next season, but unless they wanted Hinrich anyway it makes little sense for them to trade with the Bulls rather than the Knicks.
A three way trade with the Knicks, Bulls, and Kings might make sense, but it likely wouldn't involve Kirk anymore.
McGrady -> Knicks
Harrington -> Bulls
Jeffries, Tyrus, Jordan Hill, Jerome James (possible Knicks picks) -> Kings
The Kings would get a prospect in Hill to develop, another potential guy in Tyrus, maybe a draft pick, and just take on Jeffries one year of additional salary.
If the Kings are interested in Hinrich then the Bulls have options that could make that work, but it seems like a stretch to hope for that to me.