The Knicks are not about to give Jeff Van Gundy away for nothing.

Van Gundy's former employer wants compensation in the form of a draft pick or money if the coach ends up in either Houston or Washington, according to a league source.

The Knicks, who own Van Gundy's rights until July 31, asked the Rockets for a second-round pick and a guarantee of at least two exhibition games that would bring Houston center Yao Ming to Madison Square Garden.

The compensation issue could be moot if Van Gundy turns down both Houston and Washington. Van Gundy is expected to make a decision today or tomorrow. Van Gundy, who was holed up in his Westchester home yesterday debating his future, is also considering returning to television for another season as an analyst for TNT.

The Knicks' insistence on compensation is not expected to be a deal breaker, but it could delay an announcement. It also illustrates the bitterness the team still feels toward Van Gundy, who resigned 19 games into the 2001-02 season.