As Stein notes, the Knicks only have the $2.5 million room exception to offer free agents. So unless they work out a sign-and-trade with the Hawks and a third team to clear cap space, they won't be able to offer much to Crawford.
The Indianapolis Star reported via Twitter that Crawford turned down a two-year, $10 million offer from the Pacers that included an opt-out after the first season.
If the Hawks, Knicks and a third team work out a deal for Crawford (or if he for some reason accepts the Knicks' exception), it is unclear where Crawford would fit in the Knicks' rotation.
Bringing in Crawford may take the Knicks out of the running for free agent forward Shawne Williams.
According to agent Happy Walters, Williams is expected to make a decision on free agency by Wednesday. If Crawford came aboard, the Knicks would likely be limited to paying Williams the veteran's minimum.
Mike D'Antoni was asked on Tuesday if Crawford would come off of the bench or be inserted as a starter. Crawford won the NBA's Sixth Man of the Year award in 2009-2010.
"I don’t think we’re locked into anything," D'Antoni said. "He's shown that he’s been a great starter and a great sixth man. [If Crawford is added], we’ll just figure out what’s best for our team."
D'Antoni added that he didn't want to "mess with" current starting two guard Landry Fields. If he's inserted as a starter, Crawford would likely replace Fields at shooting guard.
"Right now, without him here, there’s no use in deciding that," D'Antonni said.
On Monday, Knicks interim GM Glen Grunwald said the team "would certainly love to have Jamal back here, and we'll see where that goes. That's a situation that's still developing."
Crawford, 31, played for the Knicks from 2004 to '08 and boasts a career average of 15.4 points per game over 11 seasons.