Based on the information that has been put out so far, the maximum the Knicks can give Melo is 5yr $130M and the most a new team can resign him for is 4yrs $96M. Average out those numbers, and it means the Knicks can offer him $26M per year and all other teams with the salary cap room like Dallas or the Lakers can give him $24M per year.
I fully expect Melo to be a little flexible in what he's willing to accept but anyone thinking he is signing with the Bulls for $18M per year (4yr $72M) or even a $20M per (4yr $80M) deal is out of their mind. I don't see any player in any sport settling for $25-50M less than they are worth. My belief is that if the Bulls offer $22.5M a year (4yr $90M), they will be competitive enough that Melo will accept taking a 10% discount on his yearly salary to come to Chicago.
The NBA allows teams to stagger payments so the Bulls would need to clear up about $20M for the first year, then $22, $23, and $25 for the following years. The salaries of Anthony Randolph, Carlos Boozer, Mike James, Lou Amundson, and Ronnie Brewer equals about $22.7M, plus MDJ is another $3.3M to add to the pot.
How many of you would be willing to make that large of a commitment to get a superstar player, if not what is the most you would offer, and the best question of all is, do you believe GarPax and the Bulls are really serious about making a move this big?