The question now is what other moves do they need to make to put themselves in position to contend for the championship in the 2011-12 season and beyond.
The terms of a new collective bargaining agreement will obviously affect the way the team is structured moving forward, but the Knicks' needs will still be the same.
Before the Knicks can even move forward with shaping their roster, there are five things they'll have to do first.
James Dolan has an important decision to make now that he has failed to come to a new agreement with outgoing team president and general manager Donnie Walsh. Dolan must decide who will really be running this team from this day forward as Walsh slides into a consultant's role this year and, presumably, retirement in the future.
Senior VP of basketball operations Glen Grunwald has been named the interim general manager, and is one of a few candidates for the top job.
Assistant GM Allan Houston, a former Knicks star himself, is another candidate, and for the last few years some thought he was being groomed as Walsh's successor. Houston has been named GM of the team's D-League affiliate, and that could work in his favor moving forward.
Other candidates for the job include Scott O'Neil and former Denver Nuggets GM and current Knicks consultant Mark Warkentien.
There is a school of thought that all of these candidates could potentially share the responsibilities, but that would likely only lead to confusion.
What Dolan definitely cannot do is put the franchise back in the hands of Isiah Thomas, unless he wants to drive away all his fans. I feel bad even mentioning this possibility, but Dolan is just that unpredictable.
Mike D'Antoni loves the three ball. Luckily for Shawne Williams, that is his specialty.
Williams was the 15th man on the roster coming into last season, but he worked his way off the bench and into a regular spot in the rotation, becoming one of D'Antoni's favorites along the way.
Shawne connected on 40.1 percent of his three point attempts last season, and flashed some ability to defend both the perimeter and the post as well.
With Carmelo Anthony and Amare Stoudemire both doing most of their scoring from inside the arc, the Knicks can really use Williams' prowess from the outside as they move forward.
For the second straight year, the Knicks purchased a second-round pick and selected a big man. Last year it was Jerome Jordan, and this year it was Josh Harrelson.
Jordan spent last season in Serbia, and Harrelson toiled on the bench for three years at UK before becoming a contributor last season.
Depending on, essentially, two rookies to man the center position is not the smartest idea. Looking for a veteran center would be wise, but they have to be sure he's not too expensive. The Knicks want to preserve their 2012 cap space to take a run at Chris Paul, Deron Williams, Dwight Howard or some other free agents.
That's why the Knicks have to go bargain hunting this offseason, looking for a center who will sign for cheap on a one-year offer.
Typically, there are some veteran big men out there who will take a minimum deal to play for a contender, as occurred with Zydrunas Ilgauskas and Juwan Howard in Miami and Shaquille O'Neal and Jermaine O'Neal in Boston last season.
The Hornets have publicly stated they have no desire to trade Chris Paul, and he has stated he has no desire to leave New Orleans. However, we are are familiar with this story, because we followed it up close last year, only with a different player at the center.
Carmelo Anthony had no desire to leave Denver, and the Nuggets had no desire to trade him, but come February, Anthony was New York bound.
The Knicks would be wise to check in with the Hornets and see what it would take to pry Paul from their hands if they were to decide to deal him in the future.
If the Hornets want to avoid the type of saga that engulfed the Nuggets for most of last season, they could decide to move Paul before the season ever starts.
It's a fairly well established fact that Mike D'Antoni is not the greatest defensive coach in the league. The Knicks should look to add a true defensive mastermind to the staff this season if they really want to compete for a title.
The Boston Celtics have hired a defensive assistant to aide Doc Rivers who, like D'Antoni, is more of an offensive whiz. They had Tom Thibodeau but, when he left to coach the Chicago Bulls, they hired Lawrence Frank.
If Frank doesn't get the head job with the Detroit Pistons, he should absolutely be a candidate to be D'Antoni's right hand man in New York.
Orlando Magic assistant coach Patrick Ewing should be in the organization in some capacity, and maybe this would be a good opportunity to bring him back.
Charles Oakley campaigned for years to be brought back as a defensive assistant, but was never given the opportunity. His good pal Michael Jordan hired him as an assistant in Charlotte, but Oakley may take this season off due to an injury he sustained in an assault incident in a Las Vegas casino.
The Knicks shouldn't rule anyone out for this job, and should search far and wide before they decide who is the right man to lead the turnaround of the team's defense.