The Knicks have Rose’s Early Bird Rights. So they can exceed the cap to re-sign him and offer him as much as $13.4 million in the first year of that deal. If they offer Rose more than that number (which is 175 percent of his previous salary), then they would have to use cap space to re-sign him.
The Knicks are projected to have around $50 million in cap space, depending on how they handle the free agents on their roster. So they would have enough cap space to offer Rose a deal that starts above $13.4 million.