A person with knowledge of the situation said the Houston Rockets are engaging in very preliminary discussions involving offers for Tracy McGrady and, the source said, the Knicks have shown some interest. However, much like the inquiry about Shaquille O'Neal, it is believed to be strictly due diligence at this point on the part of Walsh.
Rumours and the Knicks seem to go hand-in-hand, but that wouldn't be too bad for New York. If it works out, great; that's another option for them moving forward. If not, McGrady is an expiring contract and they'd have another lottery pick and an obscene amount of cap space. As with Allen Iverson in Detroit, it would be a gamble that could pay off down the road, even if it appears to crash and burn in the short term.