From the NY Times:
The Knicks, who also acquired the veteran big man Darko Milicic in a draft-night trade, are not done shopping. They will try to re-sign their two restricted free agents, Lee and Nate Robinson, when the negotiating period opens Wednesday. They will also continue their search for a top-flight point guard, with Jason Kidd a primary target.
Kidd, who previously played for the Nets, is said to have an interest in returning to the area. However, the Knicks will have only their midlevel exception, about $5.5 million, to spend. They are also unlikely to offer Kidd more than a one-year contract, because they do not want to jeopardize their salary-cap space in 2010.
1 year isn't awful, but Kidd is. Is he really needed? Is he a necessity? I don't think so.
The Knicks definitely need a guard for depth purposes, but it's tough to tell if Kidd would be the answer. I'd probably lean more towards Steve Nash for a similar deal.
Although, you can never go wrong with the D'Antoni offense.
--Speaking of guard depth, Donnie Walsh will indeed place a call to Minnesota regarding Ricky Rubio. My guess would be Jordan Hill and Al Harrington would go to the Wolves.