The warning from the NBA league office that the salary cap could decline is having an impact on the Knicks' pursuit of Ramon Sessions.

If the cap drops as much as the league's worst-case scenario, even an offer starting at this year's mid-level exception could dip into the maximum contract slot the Knicks have set aside for next summer.

Walsh was reportedly relieved that Jason Kidd turned down the team's offer, which was made before the league issued its cautionary memo to teams.