According to Alan Hahn of the MSG Network:
One thing that seems abundantly clear is Jeremy Lin will be re-signed regardless of what another team offers him as a restricted free agent. The pursuit of a veteran PG is not just to help the team win now, but also to invest in Lin's development. You can't find anyone in the organization that doesn't believe in Jeremy Lin. He is, and will remain, a Knick.
There have been numerous reports that the Knicks would not be willing to match a backloaded contract if a franchise like the Toronto Raptors were to offer a deal that could potentially look something like this: Year 1: $5 million, Year 2: $5 million, Year 3: $15 million, Year 4: $15 million. These figures are approximate, but the max the PG could make is right around a four-year, $40 million deal.
That would absolutely kill the cap room for the Knicks, who have Tyson Chandler, Amar’e Stoudemire and Carmelo Anthony under contract for the next few years and all owed major amounts of money.
However, the Knicks brass seems convinced that Lin is the PG of the future and will do whatever it takes to retain his services.
It’s a wise call for the organization to make the collective decision that Lin is their guy. The plan may deter another organization from even wasting their time making an offer to the RFA, although it may backfire if another team does offer just to hurt the Knicks financially.
The most important reason is the impact that this vote of confidence will have on Lin’s psyche. He will not have to wait around all summer wondering where he will play and can just concentrate on rehabbing his injury and eventually making the New York Knicks a better basketball team.
If Lin can continue to do the latter, he’s worth the price of admission.