The Knicks did not disclose terms of their deal with Mike Woodson, but sources told ESPNNewYork.com's Stephen A. Smith that Woodson's contract includes two guaranteed years and a third-year option, worth approximately $4 million per season.
It's significant that Woodson has the opportunity to coach three seasons.
Amare Stoudemire, Carmelo Anthony and Tyson Chandler are all under contract for the next three seasons. All three have shown support for Woodson.
So they will have at least two seasons as a group to compete with the top teams in the Eastern Conference.
Woodson knows that expectations will be higher now that the interim tag has been removed from his job title.
"That's the way it should be," he said. "I'm looking forward to the challenge, that's why I elected to come back."
GM NEVER CONSIDERED AMARE FINE: GM Glen Grunwald said on Friday that he never considered fining Amare Stoudemire after Stoudemire lacerated his left hand in the Knicks' playoff series against the Heat. Stoudemire hit the glass case around a fire extinguisher after the Knicks' Game 2 loss in Miami.
The power forward missed Game 3 but returned for Games 4 and 5.
"No one's suffered more than he did," Grunwald said. "It was a mistake that he made, that he owned up to. And he did all he could to come back and play with that injury. ... We didn't consider a fine again because it was a mistake made in the emotions of a game or right after a game. So it wasn't appropriate I think."
BIRD RIGHTS: Grunwald did not want to speculate on the upcoming arbitration case between the NBA and the Players Union to determine whether waived players' Bird Rights remain intact.
The case is significant for the Knicks because, if the union wins, it would allow them to re-sign Jeremy Lin and Steve Novak without consequence to the salary cap.
"We're interested bystanders, let's say," said Grunwald. "Obviously it will impact some things, it will provide us with a couple more options in trying to improve our team. But it's still the same basic deal."
Information from ESPNNewYork's Ian Begley was used in this report.