Knick president Isiah Thomas is finding out that Quentin Richardson and his bad back are not in high demand.

The Knicks' offer of Richardson for point guard Earl Watson, the kind of young ball handler Larry Brown craves, has been rejected by the Nuggets.

A free agent signee over the summer, Watson became eligible for trade Dec. 29. The Nuggets are willing to trade Watson to balance their roster ? they already have two point guards in Andre Miller and Earl Boykins.

A league executive familiar with the Nuggets thinking said Richardson is not the guy they want. The Knicks have yet to pony up center Jerome James. The Nuggets are entertaining offers from at least three teams.

The Knicks' trade for Richardson ? they have up Kurt Thomas to get him ? was held up last June because his contract was not insured for a career-ending back injury. Richardson has missed games this season because of back spasms, an indication the insurance adjusters knew what they were doing.

Richardson has four years left on his pact. "It's a red-flag," the league executive said of Richardson's contract.