The Knicks have a $2.5 million exception (given to teams under the salary cap in the new CBA) to offer free agents. But Crawford is reportedly seeking $5 million per year.
So the Knicks are working on acquiring Crawford in a sign-and-trade.
If he's obtained, it is unclear how Crawford would fit into Mike D'Antoni's rotation.
He could start at shooting guard in place of Landry Fields or he could come off the bench as a sixth man.
One issue that may hold up the deal is the Hawks' salary cap situation.
As ESPN.com's John Hollingernotes on Twitter, a proposal that sends $3.7 million to Atlanta would force the Hawks to pay the luxury tax.
Given the Knicks' tenuous situation in the back court, it would be tough to part with Douglas, who has established himself as an excellent perimeter defender. Crawford, who won the 2010 NBA Sixth Man Award, was never known for his defense during a four-year tenure with the Knicks.