According to ESPN;

The Knicks will acquire McGrady and Sergio Rodriguez from Sacramento, sources said.

The Rockets get Kevin Martin, Jordan Hill and Jared Jeffries from New York and will have the right to swap first-round picks with New York in 2011 as well as take on New York’s 2012 first-round pick.

Sacramento obtains Houston’s Carl Landry and Joey Dorsey and New York’s Larry Hughes.

The Knicks finally get the salary cap space they desired and get a chance to audition both Sergio Rodriguez and Tracy McGrady for the future.

According to Chad Ford of ESPN, the Knicks’ 2011 pick sent to the Rockets is Top 1 protected while the 2012 pick is Top 5 protected.

According to Wojnarowski and Spears;

The Knicks and Rockets have designed the framework of a deal that would unload New York’s Jared Jeffries, Jordan Hill and either Al Harrington or Larry Hughes for McGrady, Joey Dorsey and Brian Cook.

As talks stood on Monday, the price of dumping the burdensome contract of Jeffries – who is owed $6.9 million next season – comes with the Knicks and Rockets exchanging 2011 first-round picks and the Knicks’ 2012 first-round choice going to Houston. New York also might include a 2010 second-round pick.

The breakdown of the trade is as follows:

Knicks Receive:
G Tracy McGrady (Due $23 million in 2010 & contract expires)
F Joe Dorsey (Due $880,000 in 2010 & 2 years left on contract after this year)  
F Brian Cook (Due $3.5 million in 2010 & contract expires) 
Houston’s 2011 First Round Pick

Rockets Receive:
F Jordan Hill (Due $2.5 million in 2010 & 1 year left on contract after this year)
F Jared Jeffries (Due $6.5 million in 2010 & 1 year left on contract after this year)
F Al Harrington (Due $1o million in 2010 & contract expires) or G Larry Hughes (Due $13 million in 2010 & contract expires)
Knicks 2011 First Round Pick
Knicks 2012 First Round Pick

Without a third team, I don’t see the Knicks being able to acquire Tracy McGrady from the Rockets. Last week, the Knicks were rumored to be in discussions of a three-way trade for McGrady which included the Washington Wizards. The Wizards have since pulled off a seven-player trade with the Dallas Mavericks which puts an end to their involvments in trade talks with the Knicks and Rockets.

To get McGrady without involving a third team, the Knicks will have to give up a young player they value; Jordan Hill, Toney Douglas, Wilson Chandler or Danilo Gallinari. Of those players the only guys the Knicks would trade are Hill and Douglas, but reluctantly. To make the trade worthwhile, the Knicks will try to throw Jared Jeffries in the deal. That’s where the discussions end. I can’t see the Rocket entertaining the idea of taking on Jeffries’ contract.

The Knicks could try to work a trade of expiring contracts for McGrady. The Rockets and McGrady aren’t on good terms and the Rockets may want a player like Al Harrington to help them this season before his contracts expire. They could also deal Larry Hughes or Nate Robinson to the Rockets. The only thing is, being that the Rockets are on bad terms with McGrady, why would they do him a favor by trading him without getting a player of substantial value for him?

The best bet of a trade happening is if the Rockets accept expiring contracts or if another team gets involved and gives the Rockets someone of value. The Knicks won’t give up a player they are high on unless the Rockets take Jared Jeffries too and the possibility of them taking Jeffries is slim because they want to have cap space for free agency this summer just like the Knicks do.

If the Knicks desperately want McGrady, they’ll send a package of either Jordan Hill or Toney Douglas plus Al Harrington and possibly another expiring contract to Houston.

About starting Robinson over Duhon D’Antoni said, “I don’t have a reason not to. I like what we saw. Hopefully it will stay that way.”

Robinson played the entire second half for the Knicks at point guard. He had 23 points, 8 assists and 6 rebounds in the game. 

The decision is a no-brainer. Robinson adds spunk to the Knicks and Duhon doesn’t add much of anything, at least lately. Duhon’s not getting the job done and D’Antoni has seen his point guard’s struggles become the teams’ struggles. 

On a side note, castoff Larry Hughes saw time on the hardwood in the Knicks win Wednesday night. He scored 11 points. He saw the floor two times in all of January.

Weeks ago it didn’t seem as though the Knicks were going to pursue a trade for Tracy McGrady of the Rockets. One reporter even called a possible trade for T-Mac “Dead”. Now it seems as though the Knicks are rekindling the idea. 

On January 26th, Marc Berman of the New York Post wrote:

“Houston’s Tracy McGrady should be traded at the deadline and perhaps Chicago’s Tyrus Thomas, too. Both are squarely on Walsh’s radar. Rockets general manager Daryl Morey only has interest in a Knicks’ package if either rookie Jordan Hill or Chandler are part of it.”

One source thinks the Rockets would except a package around rookie Toney Douglas too. 

Hill, yes. Douglas, yes. Chandler, no. Wilson Chandler is a guy that could be a core part of the Knicks for years. We haven’t seen enough of Jordan Hill yet, but what we have seen hasn’t been impressive. Douglas has had some bright spots, but has been inconsistent. 

McGrady is set to become a free agent after this season. If the Rockets are willing to accept a package of Jordan Hill, Jared Jeffries or Eddy Curry, plus an expiring contract, the Knicks should jump on it and run like they just stole something because it will be tough to persuade them into taking Jeffries or Curry  - tough and extremely unlikely. 

The most likely trade scenario is one of the players the Rockets allegedly want (Hill, Douglas or Chandler) plus expiring contracts.

The off-court news starts with an injury note. Center Eddy Curry will undergo arthroscopic debridement today to remove loose cartilage in his knee. He will miss about six weeks.

Staying off-court, Larry Hughes is upset about his role, or lack-thereof, in Mike D’Antoni’s rotation. Nate Robinson’s insertion into D’Antoni’s rotation has taken away minutes from Hughes and he has not taking a liking to it. Hughes sounded off to reporters last week after he didn’t play in the Knicks’ blowout 132-89 victory over the Pacers. Now the New York Post has reported that Hughes walked out of practice.

In better news, Nate Robinson will defend his title in this year’s Slam Dunk Contest.