New York - and only New York - can offer him a max deal of five years and $129 million.
According to the report, one offer to Melo is "to accept the max to start at $22.4 million next season and then take the highest-allowable 7.5 percent paycut in the second year that would open up cap room for 2015. That would clear about $3.5 million more in cap space than if he took the 7.5 percent raise."
"They’re amenable to what we’re trying to get accomplished," Knicks president Phil Jackson said. "It’s not a big thing. You guys have made a much bigger thing about this. It’s not a really big thing. It’s percentages less than 1 percent of dollars that go over five years. It just gives us more flexibility."