As far as the draft goes, you should be shocked if RJ Barrett isn’t New York’s guy. The Knicks have had some recent success with the second round and undrafted rookies (Mitchell Robinson and Allonzo Trier last year, for example), so they are capable of finding a gem at 55.
If I’m NY, I wan Hezonja back in blue and orange next season. Mudiay was a strong producer for the Knicks last year too, but he will likely not receive a qualifying offer as a RFA as a result of the Knicks’ attempts to clear cap space and woo in some big name free agents. I’m sure the Knicks would like to have him back, he may find himself in a different uniform next year.
As for free agency, I’d separate the top targets into three tiers. The Knicks currently have about $67 million in practical max cap space (per Spotrac) and are one of a handful of teams looking to strike gold this offseason with supermax players. Durant and Leonard are arguably the two best in the game right now. Leonard is an extremely long shot at this point, and Durant’s injury complicates any departure from the Bay, but both should and will be aggressively pursued by NY. Kemba Walker is a Bronx native but has declared loyalty to the Hornets, and Kyrie has long been linked to NY but is now linked more to Brooklyn. The “consolation” prize for Kyrie could be current Nets guard D’Angelo Russell, who could make a huge impact with the Knicks.
As far as trades go, I would try to deal Frank Ntilikina for a pick. The PG situation is packed in NY, especially if Kyrie or DLo were to come in, so it would be wise to get what they could put of Frank (and clear more cap space at the same time).
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