CHICAGO - Tracy McGrady is still the Knicks' primary target, but as of Tuesday, team officials were not optimistic that a trade would be completed before Wednesday's 3 p.m. deadline.
"It's less likely than it was on Monday," said a person familiar with the negotiations. "But you never know."
The Knicks, however, could be closing in on a trade that would send Nate Robinson to Boston. The two teams have discussed different proposals that would include the Knicks getting back expiring contracts. Robinson, who rejected a trade to Memphis in December, would waive his no-trade clause in order to play for Boston.
The complicated trade for McGrady and his expiring $23 million contract is loaded with several potential deal breakers. For one, the Rockets are not enamored with the idea of taking on Jared Jeffries' contract, which is critical since any deal involving Jeffries would clear up enough salary-cap space for the Knicks to sign two max free agents this summer.
"The plan was to get as many as we can," Mike D'Antoni said before last night's game against Chicago. "We want to be under the cap as far as we can go to get as much flexibility as we can get. I don't really know what that goes into, but that's the plan and that's what we're going to do. Whether we're there now and that's as good as we can do, then we're there now. Whether we can open up more room, we'll look at it. Nothing's off the table."
Trading Jeffries is difficult because he is scheduled to earn $6 million next season plus an additional $2 million if he is traded. The proposed deal with Houston also calls for the Knicks to include first-round pick Jordan Hill plus the club's 2011 and 2012 first-round picks. The Knicks would receive Houston's 2011 first-round pick. Multiple sources claim that Walsh has no intention of trading Hill, the 6-foot-8 power forward whom the Knicks selected ahead of Milwaukee point guard Brandon Jennings.
"Donnie is not giving up on Jordan," said one Knicks source. "He told me he's not trading him."
Walsh, who is conservative by nature, is not prepared to leverage the Knicks' future, especially since there is no guarantee that the club will sign an elite free agent such as LeBron James or Dwyane Wade.
"There are no guarantees," D'Antoni added. "But I think the track that Donnie spelled out when I signed on is the right way to go and we'll stick with."
Some variation of the deal, which would have to include Larry Hughes, could be done without Hill. The Rockets have a history of making deadline deals, and according to a team source, Houston owner Les Alexander's favorite two days of the season are draft night and Wednesday's trade deadline. That, along with the presence of McGrady's agent, Arn Tellem, could both work to the Knicks' advantage.
Tellem, the league's most powerful agent, is trying desperately to get his client out of Houston. McGrady was banished by the Rockets in December and is hopeful to restart his career in New York.
There is a possibility of McGrady reaching a buyout after Wednesday's deadline, but up to this point, the Rockets have given no indication that they will release the former All-Star. If the Knicks fail to make a trade and McGrady isn't released, D'Antoni revealed that he intends to give Danilo Gallinari, Wilson Chandler, Toney Douglas and Hill more playing time over the last 30 games.
"I do want to look at that more," he said. "I still want to win and we're still going to put out a good product and be competitive. I think No. 1 is the development of Wilson and Gallo, and that will only come if we're winning and playing hard and playing well.
"And at the same time I do want to look at the two rookies more....I don't know exactly how it will be, but my intentions are to get a good feel for those two guys and get them a little more developed, but not lose sight that Gallo and Will need to play in competitive games and need to be assertive and be important players."