So news just came in that there is a new rule in the CBA that allows contracts to be extended for extra years and restructure the yearly cap impact down by up to 40%.
This means that the Knicks can renegotiate Amare and Melo's contracts down to around 12 million next season (best case). We are looking at signing Tyson Chandler to a 4 year $54 million contract. This contract will most likely start in the 11-12 million range increasing to the 13 million range next season.A big part of the NBA's new CBA will be a "renegotiation and extension" provision.
It will allow players to be paid a smaller amount over a long period, but the salary cannot decrease by more than 40 percent.
A renegotiated salary previously could only increase a salary.
The current salary cap is 58 million and will probably be in the 60 million range next year. Even with all 3 contracts on a higher level we would have the ability to free up easily enough space to sign Chris Paul.
Now here's where the new CBA helps us even more. A player extending his contract cannot extend for the maximum number of years. Whoever Chris Paul gets traded to it makes no sense for him to extend at all because he would lose a year of money which would equate to $20 million dollars.
This means Chris Paul will almost certainly be a free agent next year.
By some miracle, it appears the Knicks may look like this:
And that is disregarding any MLE or minimum contracts we may speculate about such as Baron Davis or Jason Richardson who are available this year.
This is certainly by no means a done deal but it seems very interesting that today we learned that the Knicks are doing everything they can to go after Tyson Chandler, only a couple of days after Chris Paul stated that any team who wanted to sign him would do well to sign his good friend.
It also makes a lot more sense that the Knicks would do this since I'm sure they knew about this salary re-negotiation before we did.