If we do not buy-out Billups, we will not have cap room next year to sign Deandre Jordan or any other reasonably dominant big. If we keep Billups and his $14.2M salary, it will come off the books when CP3 may become available. But with Melo and Amare' then north of $40M in combined salaries, we are not likely to be able to extend to CP3 anything near a max contract.
I believe that the Knicks must exercise their buy-out option for Billups within 5 days of the end of the season. What they do will reveal something about future plans. I think we should buy him out. I do not trust a new CBA or our ability to sign CP3 when he is a free agent. And Amare's and Melo's combined salaries will keep going up. I believe that in a couple of years the salary combination will be beyond $47M.