Two league sources, however, told The Post that James Dolan is almost up to his limit ? that he's no longer willing to be Santa Claus and he's reluctant to add much to his already league-high $119 million payroll for only a marginal boost.

The Knicks have had the chance to obtain Toronto's Jalen Rose for the expiring contract of Penny Hardaway since November, for example, but have resisted making the move. Thomas is trying to squeeze at least one unprotected first-round pick and $3 million from Toronto to lessen the burden of adding $34 million of combined payroll and luxury tax.

Rose, 32, is an adept slashing scorer who could be the Knicks' starting small forward. But he's a poor defender and wouldn't transform the team from a lottery club into one that's a lock for the playoffs. Nor does Rose fit the profile of a player who fits into Thomas' proclaimed rebuilding program ? a plan so flawed that the Knicks probably are unable to keep their lottery pick in the next two drafts because of the trade that brought Eddy Curry from Chicago.

"Mr. Dolan said he'll do anything he can to help us win," Brown said in a quiet moment away from the cameras and horde of writers. "He said that to me when I got the job. He said to me, he'll do anything he can. I'm confident if there's something out there that makes us better, we'll do it because everybody feels strongly about making us the best team."

If Dolan is uneager to add payroll, it's hard to blame him. Beyond the $119 million payroll, he's on the hook for about $43 million in luxury tax ? even after a reduction from Allan Houston's medical retirement.

Dolan is shelling out more than $9 million per year for Brown and paying a league-high six assistant coaches. He is also still paying former GM Scott Layden's final year of salary ($6 million) and of course, Thomas' own salary.

All that for a record tied for the league's second worst. Merry Christmas, Jim.

"The resources are there," said Dolan during training camp. "But we have to use it wisely and not waste."