So what's next for Phil Jackson's franchise?
The short term: The Knicks may have as many as three open roster spots thanks to the trade. They acquired Alex Kirk, Lou Amundson and Lance Thomas in the deal. They are going to waive Amundson and Kirk and are considering waiving Thomas, league sources say.
It is unclear who will fill the other two spots, but league sources say that the Knicks might be in the market for a big man because of injuries to Amar'e Stoudemire (sore right knee) and Andrea Bargnani's recurring calf injury.
The Knicks also might not be done. Several reports stated that the team is shopping Jose Calderon, who has underperformed since coming over from Dallas.
Jackson has six weeks to make more moves ahead of the February trade deadline. It would surprise no one if he was active.
Shedding the contracts of Shumpert and Dalembert only helps lower the Knicks' luxury-tax bill for the coming summer, which helps owner James Dolan but doesn't give the Knicks any added flexibility.
But shedding Smith's $6.4 million contract is significant. This gives the Knicks added cap space in the summer of 2015. They are projected to have about $25 million in cap space.
That would be enough money to sign a player such as Marc Gasol to a max contract starting at approximately $18 million. It would also give the Knicks some extra cash to spend on lower-level free agents.
The feeling among some around the league is that the Knicks will instead target second- and third-tier free agents this summer and maintain some cap flexibility for the summer of 2016, when a free-agent class headlined by Kevin Durant becomes available.
One name to keep an eye on this summer is Reggie Jackson. NBA people expect the Knicks to have interest in Jackson, who can test free agency this summer. Jackson likely will be a restricted free agent. But with Oklahoma City having obtained Dion Waiters, the club may not break the bank to retain Jackson.
Certainly something to keep an eye on.
Question: What do you think of the Knicks' trade? Which free agents would be on your wish list this summer?