So, assume a $55M cap. Assume every player is tradeable, but expirings (JJ, Curry) have to take back future salary. I would deconstruct this team and build from the ground up. Assume you need 8 "players" and you will meet the requisite 10 player roster for salary cap purposes using the 2 second round draft picks (S.5M each). Once over the cap, you can sign veterans to the veteran's minimum despite cap restrictions. Let's assume this will add depth, not rotation players though.
The next consideration is that players must fit in the Knicks offensive and defensive set. Offensively, players must be able to hit the open 18 footer, have high level passing skills and be able to run the floor above average. Defensively, the goal is to have players 6'8 or taller at each position so that players can switch off of picks rather than fighting through them.
Lee, Nate, Harrington or Duhon in a deal that brings back a rookie scale contract and/or draft picks. These guys will need to be non-tendered to remove their cap holds. Assume we have to let these guys walk. Get over the emotions of it, assume it is necessary to start with a clean slate.
First, sign Lebron for $17M. In this offense he really runs the Point Forward position. Keep in mind that another player may be responsible for bringing the ball up the court. This makes the PG less important on the offensive level and more important on the defensive level.
Second, trade Toronto Gallo, Chandler and Curry for Bosh at $17M. They are likely to lose him anyway and this way they get back some real talent. Fill in the rest with a top 5 protected 1st rd pick if necessary to get this done. Add two picks if necessary, but get it done. Now, you have Batman and Robin but you only have $20 to fill 6 more rotation spots.
Third, offer Hughes $2M per year for 2 years. Its likely to be a tough market for him with so many FAs out there. He will be the SG. If that doesn't work, I think Raja Bell is the next choice with the same offer. $18M left for 5 players.
Fourth, here you have to hope that Hill can develop into a viable C. Like Kendrick Perkins in Boston, you are not looking for a top 20 center, just a viable player. In any event, I think he does that. So, after his $3.5M we have $14.5M left to fill 4 more rotation spots.
Fifth, I think you have to keep Jared Jeffries cause it is too hard to move his contract. Let's placehold his $6.9M salary and use the remaining $7.6M on 3 players.
Sixth, at PG, I am looking at Javaris Crittendon. I'd offer $3m per to see if wants to run with this squad. Let's assume he takes it. $4.6M left. on 2 players
Seventh, backing up Crittendon is Douglas at $1.2M. I'd like to move Douglas for a taller player, but let's assume we keep him, (or at least the salaries will have to match. We have $3.4M left.
Eighth, I'd offer the $3.4M to Hakeem Warrick or Jarvis Hayes. Whoever accepts first gets the contract.
Now, offer the vet's min to up to 5 guys who want to win, like Bender, Tim Thomas etc...
PG Crittendon 6'5/Douglas 6'1
SG Hughes 6'5/Douglas 6'1
SF Lebron 6'8/Warrick 6'9
PF Bosh 6'11/Warrick 6'9
C Hill 6'11/Jeffries 6'10
I think that's a championship squad.