Hahn's analysis: Walsh has laid the groundwork for a hot July

Just think, the hardest part is still to come.

Donnie Walsh on Thursday excavated another $9.5 million off the 2010-11 salary cap, which frees up more than $30 million in cap space for this summer's long-awaited Knicks renovation.

They already had enough space to make LeBron James a maximum contract offer, but now the NBA's biggest market is a lot more dangerous because it can build a team around James with the leftover cash.

Meanwhile, the Cavaliers worked furiously before the deadline to make a major addition - forward Antawn Jamison - to put even more talent around James, hoping it pushes the Cavs to a championship that most expect would be enough to keep LeBron from leaving.

Make no mistake, the Cavs are extremely concerned about the lure of the Garden, New York and now the virtual clean slate the Knicks will have on July 1.

And that's exactly the plan.

Walsh struggled all week with giving up a young asset in rookie Jordan Hill and a 2012 first-round pick - essentially mortgaging the future - to accomplish the cap savings goal. But by making the deal, a clear message was sent to James and the Cavs.

"Two words," a Western Conference general manager said.

"All in."

As you keep vigil in this ongoing LeBronathon, let's correct one misguided assumption. Even with all of that cap space, there technically won't be enough room to make two maximum-contract offers to free agents this summer and still fill out the roster without going over the cap. So those visions of LeBron and his buddy Dwyane Wade tossing alley-oops to each other the way they did last Sunday in Dallas probably are going to remain limited to All-Star Games and Olympics.

But if they can sign James, the Knicks can involve him in the process of putting together the pieces around him. For instance, James really wanted the Cavs to trade for Amare Stoudemire before the deadline. Stoudemire, if he decides to opt out, could join him in New York. Very few GMs believe Stoudemire is a max contract player, so that shouldn't be an issue.

Even if the Knicks are unable to convince James - who by then likely will be a two-time MVP - to leave Cleveland, there still are some very favorable options.

They can use the cap space to target two All-Stars such as Joe Johnson and Chris Bosh, though you'd have to convince them to take less than a max contract or attempt to acquire one via sign-and-trade.

The extra cap room also allows a better chance to re-sign David Lee, though Lee will have several opportunities to consider around the league and also could be included in a sign-and-trade for one of the aforementioned stars. And the Knicks - who are owned by Cablevision, which also owns Newsday - can make a lot of upgrades via trades with their cap space and the value of Eddy Curry's contract, which expires after 2010-11.

The NBA sent a memo last summer to its teams warning that the salary cap - based on a poor economic climate - could drop from nearly $58 million this season to as low as $50 million in 2010-11. More recent projections say the cap could dip to $55 million. That $5-million swing is extremely important to the Knicks, obviously.

Walsh clearly wasn't taking any chances, which is why he mortgaged the future in trading Hill and the 2012 first-round pick to ensure the Knicks will have the space they need to make these past two years of sacrifice worth their while.

The Knicks made two trades yesterday involving 14 players plus draft picks.

The Knicks-Houston-Sacramento deal:

TO KNICKS

F Tracy McGrady (from Houston)

G Sergio Rodriguez (from Sacramento)

TO HOUSTON

G Kevin Martin (from Sacramento)

F Jared Jeffries (from Knicks)

F Jordan Hill (from Knicks)

C Hilton Armstrong (from Sacramento)

The right to swap 2011 first-round pick with Knicks

Knicks' 2012 first-round pick protected through top five

TO SACRAMENTO

G Larry Hughes (from Knicks)

F Carl Landry (from Houston)

F Joey Dorsey (from Houston)

KNICKS-BOSTON DEAL

TO KNICKS

G Eddie House (from Boston)

G J.R. Giddens (from Boston)

G Bill Walker (from Boston)

Future protected second-round pick

TO BOSTON

G Nate Robinson (from Knicks)

F Marcus Landry (from Knicks)