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While Phil Jackson has made it clear he doesn't intend to coach again, it does make sense that he wants his system implemented in New York, and there's no better way to ensure that than by hiring one of his former players as the new head coach.
If he chooses someone with experience, he's presented with a dilemma. A coach with previous success elsewhere, like Lionel Hollins or Jerry Sloan, might not be so open to adopting someone else's system, possibly even taking it as a slight to his coaching ability.
Kerr, however, may already be on the same page after playing for Jackson between 1993 and 1998, and if not, he will be easy to mold into Jackson's type of coach, given that he's starting from a clean slate.
It's been awhile since the Knicks have been in a position where the front office and the coaching staff have been completely on the same page. Mike D'Antoni, for example, expected to run a fast-paced offense before Carmelo Anthony arrived, while this past season Mike Woodson did little to integrate offseason signings Beno Udrih and Metta World Peace into his rotation, which led to their eventual release.
No other potential coaching candidate has this kind of relationship with Jackson, and that's a big part of why this momentum has been built around Kerr taking the job.