The Knicks and Rockets were closing in on a blockbuster deal yesterday that not only would bring Tracy McGrady to New York — but more important, could open up $9.5 million of additional cap space that would give the Knicks a chance to sign two All-Star free agents to maximum contracts this summer.
“We’ve made progress,” a source involved in the talks told The Post, an indication an agreement could be reached today.
The price the Knicks could pay for getting Jared Jeffries ($6.9M) off their books in this Rockets trade is giving up on their disappointing rookie lottery pick Jordan Hill, and possibly a 2012 first-round pick.
Another league source said last night the holdup is that Knicks president Donnie Walsh is still unsure he wants to surrender Hill. Still, Hill remains on the table as talks continue.
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If Hill is dealt, his salary for next season ($2.5M) also would come off the books, which could give the Knicks as much as $35 million in cap room.
Thursday is the trading deadline. Walsh is feeling the pressure of opening up more cap space that could open the way for LeBron James or Joe Johnson to join the Knicks — along with another star such as Chris Bosh.
The Knicks suddenly could become a much more attractive destination — even if McGrady is a flop.
A maximum contract may start at $17 million in 2010. If they shed enough salary, the Knicks conceivably could fit in James and another big name — or sign James, re-sign David Lee and maybe still have room for another very decent free agent, perhaps Carlos Boozer.
McGrady becomes a low-risk gamble, and the Knicks aren’t viewing him solely as a rental. This would give the former superstar coming off knee surgery a 31-game audition.
Knicks brass believes McGrady is highly motivated to play for coach Mike D’Antoni, and more important, they deem him physically fit.
The Knicks arrived in Chicago early last night, and McGrady is arriving in Chicago today to resume his workouts with trainer Tim Grover.
Details of the trade’s framework were reported by Yahoo yesterday after The Post reported Walsh and the Rockets had restarted trade talks on All-Star Sunday, with one source calling it “a 50-50 chance.”
Either Al Harrington or Larry Hughes would likely be part of the package to make the money equal. Neither player is considered essential to the respective teams, though it would seem the Knicks prefer parting with Hughes.
If they did that, the Knicks could save Harrington for a Tyrus Thomas deal. Moving Harrington would open up more time for Danilo Gallinari and Wilson Chandler.
Brian Cook and Joey Dorsey, both with expiring contracts, could be included also to make the numbers match up.
“We’re still talking,” one member of the Knicks braintrust said last night.
The Post has reported for weeks the Rockets have demanded one of the Knicks’ rookies, Hill or Toney Douglas, to make this work. The roadblock also has been the Rockets’ refusal to take Jeffries in any scenario.
Jeffries just returned from a All-Star respite in Mexico.
“I haven’t been told anything,” Jeffries told The Post as he retrieved his luggage after getting off the bus in Chicago. “If it happens, it happens. I understand the finances.”
Ironically, Walsh said at practiceyesterday he “doubted” he’d trade a rookie for a rental. But he views McGrady as possibly being part of the future if he excels and not a rental. Walsh was in lockdown mode and didn’t offer up much at practice. “No sense getting into it,” Walsh said. “If something happens, then we’ll tell you.”