Frank Isola of the New York Daily News reports that the Knicks are changing their philosophy. In a rare state-of-the-team address, Cablevision CEO and MSG chairman James Dolan said that the days of free spending for the Knicks are apparently over.
Dolan admitted that the team has to be fiscally responsible. "There is not a goal to cut back on the salaries. The goal is to put together a winning franchise, not just a winning year, a winning franchise. As long as our moves are consistent with that we'll be supportive. ... That's a good answer."
The Knicks will try to pare down their $93 million payroll (which should create a luxury tax bill of approximately $40 million). "The resources are available for the Knicks to use and use wisely," Dolan said. "They are not there to waste. We need to be fiscally responsible. We want to use every resource we have to better the team and it should come back to us in some form or another."
By passing on an offseason trade for Dikembe Mutombo and his $53 million contract, and by not using their $4.5 million mid-level exception, the Knicks have already started the financial turnaround.