Phil spoke about Melo's contract not being so big of a deal after the cap increase, back when he did the contract. This was already factored in. All top players that aren't on rookie contracts will be making huge amounts of money. The Knicks tho don't have to really worry about Melo's contract in terms of their building the rest of the team. The cap situation is not FUBAR'd as in the past.
2016 Salary CapPLAYER (9) POS. SIGNED USING BASE SALARY DEAD CAP CAP FIGURE CAP %
Carmelo Anthony SF Bird $24,559,380 ($78,731,280) $24,559,380 27.59
Robin Lopez C Cap Space $13,219,250 ($41,365,500) $13,219,250 14.85
Arron Afflalo SG Cap Space $8,000,000 ($8,000,000) $8,000,000 8.99
Jose Calderon PG Cap Space $7,708,427 ($7,708,427) $7,708,427 8.66
Derrick Williams PF Cap Space $4,400,000 ($4,598,000) $4,400,000 4.94
Kristaps Porzingis PF Rookie $4,317,720 ($4,317,720) $4,317,720 4.85
Kyle O'Quinn PF Bird $3,918,750 ($12,262,500) $3,918,750 4.40
Jerian Grant PG Rookie $1,643,040 $1,643,040 1.85
Tony Wroten Jr. SG Minimum $1,050,961 $1,050,961 1.18
2016 Cap Hold
Kevin Seraphin PF $3,376,800
Lance Thomas SF $2,127,895
Louis Amundson PF $2,126,119
Langston Galloway PG $1,225,539
Cleanthony Early SF $1,180,431
Sasha Vujacic SG $980,431
Exceptions
Room Exception $2,814,000 Kevin Seraphin
Active Contracts $68,817,528 - - - - $68,817,528
Cap Holds - - - - - - $11,017,215
Total Salaries $68,817,528 - - - - $79,834,743