If true, that would probably be the safest thing for Colangelo. If I was Casey I would be mighty pissed off with Colangelo. Oh wait, I'm not Casey and I am already pissed off with Colangelo. That showed no class by Colangelo.
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Physicals can be waived.
They are sometimes used when teams get trade remorse, and their market is not swallowing the trade, it becomes your last option to ditch the deal as part of the terms.
We took JO with a wink wink physical. If teams know the risk they sometimes waive those physicals. Like when we traded Ford away.