This is amazing. How far can the league bend over backward to accomidate the Knicks? Is it really THAT important to get the NY area interested in basketball? Did they bail us out of the Vin Baker deal? Now the Knicks will get to use what we shall henceforth call the "Allen Houston rule" to dump some serious salary. Isaiah, like a kid with a new toy, hasn't hesitated one bit with his newfound wealth, buying the Allen's replacement Quentin Richardson. Q and his lovely wife Brandy will love the glamour of the Garden.
Too bad the league doesn't do these things for us. Red must be stewing somewhere.
Update: Based on early comments, I might need to be more clear. This is a tax savings for the Knicks only. They can buyout Houston, but I don't think they'll be able to void his deal. The salary cap is still hit, but not the luxury tax cap. So it doesn't give them a lot of extra flexibility, but it does save them a lot of cash, which Isaiah is spending quickly.
I don't think this could help the C's at all. I doubt the deal would allow teams to sign FA's and then cut someone because they purposely put themselves over the tax threshold. All the details I know are on the link at the top.