The soon-to-be 30-year-old Morris signed a four-year, $20 million contract with Phoenix in a unique deal where he and his twin brother Markieff split $52 million however they saw fit.
Rather than forcing Morris into a situation that he longer wanted any part of, the Spurs pivoted to sign Lyles, who had his qualifying offer revoked by the Nuggets just one day before Morris began to express a desire to reopen his agreement.
It remains to be seen how it all plays out, but a Thursday report from Ian Begley, of SNY.tv, indicated that the Knicks now believe that obtaining Morris is "a likely scenario".
NY suddenly had more money because they themselves re-worked a deal with Reggie Bullock.
Morris, who played for the Boston Celtics last season, had previously agreed to terms on a two-year, $20 million deal with the Spurs after the start of free agency.
Now Morris is joining the rotation, and second-year Knick Kevin Knox could also get some minutes at power forward, particularly if and when this year's No. 3 overall draft pick, RJ Barrett, settles in at small forward. But, he's reportedly reconsidering signing that contract and may land with NY instead. A rare scenario that a veteran National Basketball Association player would turn down Greg Popovich and his many accolades to join a team that only managed to win 17 games last season.