How can other teams spend so much money to sign people?

I saw that Derrick Anderson wants to sign with Portland for 6 years $34 million.

Toronto re-signed Alvin Williams, Jerome Williams, and Anotnio Davis for all sorts of money.

How is it we are fighting so hard to keep Olajuwon for cheap when these other teams can throw out money to any player they want?
How do they have so much cap space. I thought Portland had the highest payroll last year, yet they still can sign Derrick Anderson?

I wish Olajuwon would stop being so greedy. He says the Rockets should keep their same team, which they are trying to do. Yet he wants to be played like he is still a superstar. He made $16 million last year, how can he really need $10 million more. I love Olajuwon, but he is being really selfish.

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