If the Knicks are looking to open up cap space to offer more money to free agents, they could open up cap space by trading Courtney Lee or Kyle O’Quinn. Of course, they could also open up cap space by trading Carmelo Anthony. Members of the Knicks organization have told people around the league that, at this point, they remain hopeful that they can trade Anthony. The Knicks and Rockets touched base last month on an Anthony deal but the Knicks were not interested in Ryan Anderson, per league sources.
Source: Ian Begley of ESPN