According to ESPN.com, in a three-team swap, the Sacramento Kings have sent recently acquired guard Tracy McGrady to the Knicks, along with Sergio Rodriguez. In return, the Kings have acquired guard Larry Hughes, along with Joey Dorsey and Carl Landry, who they already received from Houston just hours ago. The Rockets, already having traded for Kings' guard Kevin Martin, will also receive Knicks' forwards Jared Jeffries and Jordan Hill, along with the right to swap first-round draft picks in 2011, and the rights to New York's first-round pick in 2012.
New York has been working effortlessly this past week on creating cap space and shaking up their roster, having already dealt Darko Milicic to Minnesota, saving $1.8 million in the deal.
In addition, The Knicks have also been linked to rumors of possibly acquiring Eddie House, J.R. Giddens, and a first-round draft pick from the Boston Celtics, in exchange for three-time slam dunk champion Nate Robinson.
These deals will not only help clear cap space for next season, but also allow certain players, such as Toney Douglas, more playing time this season.
The Knicks will now enter next season with only four guaranteed salaries on the books including, Eddy Curry, Danilo Gallinari, Wilson Chandler, and Toney Douglas.
According to Larry Coon of the New York Times, the four combined salaries equal $21.78 million after the cap hold, leaving the Knicks with an estimated $31.5 million to spend on free agency if the salary cap shrinks to $53 million; however things get a little interesting after this point.
If the Knicks wish to re-sign Lee, he could potentially ruin New York's plans on signing two marquee free-agent this summer.
Although the Knicks own the "Bird Rights" to Lee, which would allow them to exceed the cap to re-sign him, his contract teamed with a max free-agents contract of $16.57 million, would leave the Knicks with only $4.9 million to spend on any available star they could get.
However if the Knicks do not re-sign Lee, then they would have the ability to meet the demands of one max contract, as well as offer the next star free-agent just below the max at $14.93 million.
The Knicks can also choose to not re-sign Lee, get one max free agent, and use the remaining $14.93 million to sign multiple second-tier stars to accommodate whoever they bring in with the max deal.
The remaining roster in any of these scenarios would almost be guaranteed to be made up of minimum salary players.
While the days are cold in New York, Knicks fans are now warmed with thoughts of glory after the days events; and with Curry's contract coming off the books next year, look for the Knicks to make a splash again come the summer of 2011.