The decision means the arbitrator’s ruling to grant Bird Rights to those four players will stand, and that the players and their agents can proceed accordingly.

Obviously, this is huge news for the Knicks, as we have covered extensively already. It means the Knicks can go over the salary cap to keep both Lin and Novak next season, and maintain their full Mid Level Exception for an additional player. The flexibilty the Knicks now have moving forward is critical to how the team will be built next season.

For more information on the Bird Rights rulings, and what they mean to the Knicks off-season plans, click here.

In a rather unlikely ruling, an arbitrator ruled in favor of Jeremy Lin, Steve Novak, Chauncey Billups and J.J. Hickson, giving all four players early Bird Rights to their respective teams after a hearing between the Player’s Association and the league.

For the Knicks, this decision was monumental. It allows the Knicks to sign Jeremy Lin, Steve Novak and Landry Fields to a maximum $5 million-per-year contract, all while perserving the team’s $3 million-per-year Mid Level Exception. If the league had ruled against the Bird Rights, the Knicks would not have been able to go over their salary cap to keep all three, leaving at least one player on the outside of their off-season plans looking in, and likely eliminating their Mid Level Exception all together.

Now, however, the Knicks have the ability to not only keep their young core together, they can add a veteran for above the league minimum ($1.4 million) and sure up the team’s depth.

While public perception views how the decision enables the team new flexibility with their efforts to re-sign Jeremy Lin, this ruling all but saves Steve Novak’s job in New York. If the team was put in a position where they had to choose between these three players, Novak was going to be the odd man out.

The Knicks picked Novak up off waivers before the start of the shortened 2011-12 season at a salary of $854k. He easily outperformed that contract, averaging career-highs in minutes (18.9) and points (8.8) playing exclusively off the New York bench. A career43.6% shooter from three-point land, Novak posted an NBA-best 47.2% last season, hitting several crucial baskets along the way.

The hard truth about Novak is that he is worth more than the vet minimum, but not as much as the $5 million ceiling he has. Instead, he was a player that could get near the Mid Level, a luxury the Knicks weren’t going to have before today due to the funds that would have to tie up in a Lin contract. Novak was likely going to walk as a free agent, right until the arbitrator released his surprise ruling.

Look, Steve Novak and his championship belt will not be the Knicks sixth man next season. Novak is a top eight rotational player with one elite skill (drilling 3s). He’s a very valuable piece, and a necessary piece for any team that dreams of making deep runs in the playoffs. He does give away a bit on defense, which is why it becomes hard to play him in certain crunch time situations. However, he is a player that thrived under the bright lights of Madison Square Garden and definietly morphed into a fan favorite over time. The team will still have holes they need to fill when or if they bring back Novak, but having him as a viable option again makes their off-season plans a little bit more clear.

Now, the question becomes…what do the Knicks do with the Mid Level Exception?

That decision could determine the type of success the team has next year.

This means wonderful things if your a Knick fan! Famed point guard Jeremy Lin and sharpshooter Steve Novak will now be allowed to resign contracts with The Knicks without it effecting our Mid-Level and Bi-annual exceptions. The exceptions will therefore be available to use on veteran talent within Free Agency that likely wouldn’t have signed veteran minimum contracts.

Long shot names like Lamar Odom, Steve Nash, and Jason Kidd, while still being a challenge to sign, are now a real possibility. This new found money can be spent in many different ways, but the Knicks’ Front Office must be careful. They are only 3 million dollars away from being faced with harsh taxes, and they will likely spend that 3 million quickly so it better be worth it. 

More good news: Today is June 22nd, which means there are only 4 days left until J.R. Smith has to decide if he will pick up his player option. My gut is he will, as he has waited this long, and it is in his best interest due to the large amount of guards in Free Agency.

If we add J.R., Lin, and Novak to our current signed roster that pretty much equals our talent from last season. Not to mention that it is almost a lock that Jared Jefferies re-signs for his veterans minimum contract. In other words, we can essentially only be better than last season depending on who we add in Free Agency.

Lesser names that are now available due to our newly allotted exceptions include: Raymond Felton, Aaron Brooks (restricted), Andre Miller, Goran Dragic, Ray Allen, Jamal Crawford, Matt Barnes, and Kenyon Martin.

It is too soon to speculate which of these many avenues the Knicks will choose to go. The draft may shed some light on the situation as we will have to wait and see what area of their needs they cover. It is also unclear if they are planning on trading up in the draft.

At this point I can tell all of you are getting into that classic Knick Fan state of mind where you get overly excited and start to make plans in your head (see Lebron James fiasco), so I must warn you: The NBA will be appealing the decision that was made by Dam.

There is still a chance that this will be over turned, and as my colleague, Scott Davis, pointed out in his article, “because it’s The Knicks and it’s David Stern…that’s just what happens.” Commish Stern does have a tendency to cause controversy, and everyone with a brain knows that he will not take this lying down.

But. That’s a story for a different day. Today is a celebratory day. Go buy yourself something nice.