The New York Knicks have just traded for former-Knick, Raymond Felton, which means that they are now log jammed at the point guard position. Many unquestionably believed that the Knicks would re-sign Jeremy Lin no matter what. However, after the Houston Rockets increased their offer from $5 million in the 1st and 2nd year, up to $14 million in the 3rd year, the scare tactics may have worked. Houston's original offer was only for $9 million in the 3rd year, which the Knicks would’ve instantly matched, but now that they're raising the 3rd year of Lin's contract to $14 million, it may push the Knicks further into the luxury tax than they would like.
From a marketing perspective, Lin brings more to the table than simply his game. He had the #1 selling jersey in the NBA, is practically guaranteed to be the starting point guard for the All-Star game, and sold out even his away games. No matter how absurd Lin's contract might be, he's one of the biggest cash cows in the NBA.
However, with Jason Kidd and Raymond Felton now in New York, Jeremy Lin may soon be taking his talents to the team that once cut him.