Brooklyn ownership has expressed a willingness to complete the deal for Hill, league sources told Yahoo Sports. Hill's $3.5 million contract added to the payroll would require the Nets to pay a staggering $17 million in additional luxury tax.
Thornton's contract has two years and nearly $17 million remaining through the 2014-15 season. Terry, 36, has $10.7 million left on his deal, including $5.4 million next season.
Brooklyn had discussed a deal involving Terry for Cleveland's Jarrett Jack, too, but sources told Yahoo Sports the Nets were turned off by the length of Jack's contract, which guarantees a total of $12.6 million in the final two years of his deal through the 2015-16 season.
The Nets' $5.25 million Disabled Player Exception can be used in a trade or free-agent transaction until March 10 and they can use a portion of it to absorb the remaining $3.5 million on Hill's expiring contract.
Nevertheless, the luxury tax penalty from absorbing Hill's contract would be extraordinary for Brooklyn. Hill could give the Nets a capable power forward and center replacement for a postseason run, but the team's salaries and luxury tax would reach $210 million.
Hill, 26, has never been a favorite of Lakers coach Mike D'Antoni and has struggled to find minutes in his system. It is doubtful that Hill would re-sign with the Lakers as a free agent this summer with D'Antoni still the coach, sources told Yahoo Sports.
Hill has averaged 8.5 points and seven rebounds in 19 minutes for the Lakers.