Early reports this Wednesday have T-Mac on his way to the Big Apple. This move will allow the Knicks to have enough cap room to offer two max contracts this offseason.
The deal would send Jordan Hill, Jared Jeffries, and Larry Hughes to Houston. Also, the deal will have the Knicks giving the Rockets the right to swap first-round picks in 2011 and sending the Rockets their 2012 first-round pick.
Details are still being worked out on the protection of the picks. The trade creates approximately $9.5 million additional salary cap room this summer and likely gives the Knicks the ability to offer two maximum contracts.