Lin deal ties up Knicks
Matching Rockets’ offer could hurt in long run
Team faces Tuesday deadline on whether to match $25M offer from Rockets,
WASHINGTON — The New York Knicks, one of the NBA’s highest-spending teams, face a difficult question: How much is Jeremy Lin worth to the franchise?
The team has said it would match any offer sheet signed by the point guard, but equaling the three-year, $25 million offer from the Houston Rockets would hammer the Knicks as a result of the league’s new luxury tax, part of the collective bargaining agreement reached in November.
New York forward Carmelo Anthony, practicing with the U.S. Olympic men’s basketball team in Washington on Sunday, called the deal ridiculous, referring to the third year that would pay Lin $14.8 million.
The Knicks have until Tuesday at 11:59 p.m. ET to decide whether to match the offer. Lin has not been told by the Knicks if they plan to do so, two people familiar with the negotiations told USA TODAY Sports. They requested anonymity because they were not authorized to speak publicly.
New York’s plans to retain Lin, 23, were further clouded Saturday when it reached an agreement to acquire point guard Raymond Felton from the Portland Trail Blazers in a sign-and-trade deal, a person familiar with trade discussions told USA TODAY Sports. The person requested anonymity because he was not authorized to speak publicly.
South Carolina TV reporter Mark Haggard tweeted that Felton told him the Knicks did not plan to match the Rockets’ offer. The Knicks declined to comment.
In addition to Felton, the Knicks earlier signed Jason Kidd, who was arraigned on a misdemeanor DUI charge Sunday in Southhampton, N.Y. Will they re-sign Lin and carry three point guards who want playing time on the roster? Or will they let Lin walk after he enlivened Madison Square Garden in February and March?
The decision might come down to money, even though Knicks owner James Dolan has made a commitment to spend top dollar and exceed the league’s luxury-tax threshold when necessary. If they re-sign Lin, the Knicks would be facing a quagmire in 2014 when they would have $77.1 million tied up in four players: forward Amar’e Stoudemire, center Tyson Chandler, Anthony and Lin. Filling out the roster with eight more players at $1.5 million a year — a conservative estimate — brings the payroll to $89.1 million, approximately $17 million over the cap.
Under the old CBA, that would be a $17 million tax bill. Under the new CBA, the hit would be $35.2 million and could increase to more than $50 million if they exceed the luxury tax at least three times in four seasons.