Knicks: Knicks Ready Allan Tax Ax

<div class="quote_poster">Quote:</div><div class="quote_post">SAN ANTONIO - A clause in the NBA's new collective bargaining agreement will likely end Allan Houston's career in New York and save James Dolan millions of dollars in the process.

A person familiar with the negotiations between the league and the players' union told the Daily News the two sides are finalizing a clause that would give teams that pay the luxury tax the option of releasing one player and removing that player's salary from their luxury-tax number.

The Knicks are expected to take advantage of the one-time only offer and would save approximately $40 million if they waive Houston, the oft-injured shooting guard team president Isiah Thomas has been trying to remove from the roster since last year.

Houston, 34, who has played in just 70 games over two seasons because of an arthritic knee, is scheduled to earn $39.8 million over the last two years of his contract. If the Knicks cut Houston, they are still obligated to pay his entire salary, and his contract would still count against the salary cap.

However, the Knicks may be $45 million over the luxury-tax threshold next season and would have to pay a dollar-for-dollar tax. By releasing Houston, who will earn $19.125 million in 2005-06, they would eliminate the same amount that Dolan, the Garden chairman, would have to pay in luxury tax.

The Knicks are likely to be $45 million to $60 million over the tax threshold in 2006-07, the final year of Houston's $100 million contract. By cutting Houston, Knicks would eliminate $20.7 million from their luxury tax.

"I think he's gone," said one league executive. "How could they turn that down?"</div>

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$40Million in savings ... WOW! I think Allan and Dolan will work out a buyout, either way this little clause is huge for the Knicks franchise.