I think the Knicks have actually reduced the amount of luxury tax they have to pay in the last few off-seasons, haven't they? Which just indicates how insane their salary situation has been. A couple of seasons ago, there was the "Allan Houston rule" where you could cut one guy without having to pay luxury tax on him. And the Knicks' cap situation was so awful that they didn't even use it on Houston! They waived Jerome Williams instead, since they were saving money on Houston from insurance because he retired due to injuries.