The Knicks picked up the $1.3 million third-year option on Tim Hardaway Jr., as expected.
Doing that gives them five players with guaranteed deals next season: Carmelo Anthony, Jose Calderon, J.R. Smith, Hardaway Jr. and Cleanthony Early. Smith has a player option.
The Knicks will be well under the cap after this season and hope to be able to sign an All-Star or two. Marc Gasol and Rajon Rondo are among the biggest names expected to be available.
The Knicks have until Friday to exercise Shane Larkin's third-year option, but it appears they will opt for the additional cap room. They also have until Friday to extend Iman Shumpert's contract, which they are not expected to do.
Hardaway, the No. 24 pick last year, averaged 10.2 points over 23.2 minutes and was named to the 2013-14 NBA All-Rookie First Team.