Via Bloomberg, the Knicks are reportedly offering Danilo Gallinari, Eddy Curry, and a first-round pick (presumably in 2014, the earliest possible) for Carmelo Anthony. As Ric Bucher reported last night, some sources have said Melo would like to be in another uniform prior to the start of the season, and many have indicated Carmelo’s interest in playing in his hometown of New York.*

He was born in Brooklyn, but spent the majority of his childhood in Baltimore. But there’s nothing like a hometown hero, right?

I wrote extensively about Carmelo here, but now that rumored details of the Knicks offer have emerged, there are two key questions the front office and fans must answer.

Can it be done?

Apparently, the three teams that are actively investigating the possibility of a trade are Chicago, New Orleans, Orlando, possibly the Pacers, and the Knicks. Per Ken Berger, the Magic are one of Carmelo’s top choices, along with the Knicks, and Chicago has been long rumored to have some interest. New Orleans may be a darkhorse candidate, but after dealing Darren Collison, they likely do not have the pieces to enter into the discussion. Maybe Washington could make a surprise dash at the Baltimore native, but the multiple trade partners it would require pokes some holes in that. Perhaps Mark Cuban and the Mavericks will make a run, in another multi-team fiasco. But for Denver to let Melo stay in the West, the offer will have to be extraordinary.

The important thing to remember is that if the Nuggets are committed to trading Carmelo, they will trade to the team of their choice, or whichever GM can offer the best assets. Some have said this puts the Knicks at a clear disadvantage, since other teams supposedly can offer more. But is that really true?

For Chicago, I cannot fathom a way a trade is pulled off unless Luol Deng is sent Denver’s way. Along with the $50 million he is owed over the next four years. Deng is a nice player, but Denver will be looking to lay the foundation for a revamped roster, not to add a player who will stick out like a sore thumb. Billups and Deng? Good luck with that.

ESPN’s Rumor Central made up a possible trade with Orlando that would give the Nuggets Mickael Pietrus, Marcin Gortat, and Brandon Bass in exchange for Melo and Renaldo Balkman. I have to think that Vince Carter’s semi-expiring deal would have to be included, not only because it would help match salaries, but as Carter would become superfluous with Melo. Either way, Denver wouldn’t see much potential or impact players coming their way.

Maybe the Knicks can’t offer an established player, but Gallinari, Curry, and a 1st rounder is a good return in what may be a shallow market. If Melo waves goodbye to Denver, the Nuggets will simply not be as competitive as they have been the past couple of years. Do they have nice players beyond Melo? Yes. But replacing your franchise cornerstone and offensive engine with a Luol Deng or a Danny Granger and their $50 million contracts would be indicative of ignorance in the Nuggets’ front office. No player being offered can immediately step in and replicate Melo’s effect on the team. The loss of the team’s foundation means the Denver would have to start building anew, with youth and flexibility. The Knicks offer that.

Gallinari would be able to step into the small forward role in Denver right off the bat, and the team would have him under his cheap rookie deal for another two years. Curry would give them $11.3MM in maneuverability next summer, and a first-round pick might be a pleasant surprise for the team in four years.

Should it be done?

The Knicks management is reportedly grappling with this issue, as Alan Hahn wrote.

Here’s where it gets tricky for the Knicks and where, I’m told, there is some debate going on within the Knicks’ hierarchy. Is it worth paying a king’s ransom for Carmelo now, when it is possible you can sign him as a free agent next summer (or after a lockout)? Is it smart to give up a very affordable young talent in Gallinari, who has the potential to be a second or third star player, and remove any chance of making a run at Paul or Deron Williams in 2012?

A couple of things need to be remembered. First, Anthony is not a transcendant player, but he is an established star who may have cemented his place last season as one of the league’s best pure scorers. Maybe Anthony is not even a top ten player, but Gallinari is a risk. He has promise, but so often that tantalizing potential goes unfulfilled in the NBA. Not pulling the trigger on what would be a near Gallinari for Anthony swap would mean the Knicks gambled for Gallo to become a perennial All-Star, the best player on a legitimate contender. I wrote recently on the gamble that is Anthony, but he represents a different type of risk. Gallinari has yet to reach “star” status. Anthony, in terms of production, has yet to reach superstar status. What are the chances Gallinari reaches his full potential? Forty percent, tops? Even if Carmelo does not improve, he has already reached a level the vast majority of players do not even near.

Even if Gallinari is destined to eventually become this player, who knows when it will be? Is it reasonable to say the Knicks best chances for winning are within the next three years? Amar’e is under contract for another five years, and even if the weak knee cartilage holds up decently, his peak is not sustainable throughout the duration of his deal.

Introducing finances makes the issue somewhat murkier. While Anthony has not explicitly said it, it is fairly clear he is eager to player in New York, so an extension agreement should not be an issue. Any team that is interested in Melo is interested in Melo for the long-haul. There are four ways Anthony finds himself in orange and blue. First, Anthony could sign the three-year, $65 million offer that the Nuggets have on the table in an “extend-and-trade” deal. Second, the Knicks would trade for him, then sign him to a contract replicating Amar’e’s. Third, Carmelo comes to New York in a sign n’ trade. Fourth, the Knicks could wait until free agency to tender an offer.

As it stands, the Knicks have roughly $16 million in cap room next year, presuming Wilson Chandler walks and all other options are exercised. By the looks of it, this would be just enough room to fit in another max salary, but all signs point to Melo finding his way to another city by then. If Denver is going to trade Anthony, the Knicks will have to get him that way. No team will take him without assurances of him signing a long-term extension.

In the early going, it doesn’t seem like much of a contest. Passing on Carmelo lets the Knicks keep Gallinari for another two years at a bargain rate ($7.5 million) and enjoy the bigtime cap relief Curry offers. Meanwhile, Melo’s contract would chew up the budget for the next several years and, coupled with Amar’e, present the Knicks with two, very expensive and aging pieces in a four or five years.

One of the chief complaints against Melo relating to the cap is that it would seriously impair the Knicks chances of signing either Chris Paul or Deron Williams in 2012. To a degree, this is true. Depending on possible contracts, the Knicks would be expecting to have anywhere from $12MM to $15MM available in cap room that year (by the 2010-11 cap).

It is often missed, though, that both Gallinari and Randolph will be restricted free agents that year. It is a near certainty that both will receive offer sheets from other teams, and the Knicks would be ill-advised to let both slip to leave Amar’e all alone. The $12MM to $15MM that would result from signing Carmelo (not including a new Randolph contract) may not be enough for either Paul or Williams. But substitute two players in Anthony’s place, and that figure doesn’t get much better. The Knicks spent the past two years “building” around a hypothetical presence. The same mistake cannot be made with Paul and Williams.

However, in acquiring Carmelo, the Knicks margin for error narrows dramatically. Not only would they be tying up a major chunk of their fiscal maneuverability between two players, they would be put at a further loss in the draft. Even if the current offer of Gallo/Curry/first-rounder falls through, the Nuggets will continue to demand a pick. The Knicks’ pick next year will likely be swapped with Houston and the 2012 pick is owned outright. If all goes to plan, the Knicks would be picking late in the first round in 2014, but the team is already starved of the cheap talent that comes in the draft. With limited cap room due to the two max contracts, the issue is only magnified.

In the end…

…what it takes to get Carmelo will sting. In this way, it would be nice if Denver held onto him until the summer. But the Knicks want the second star. They have been craving for one since Donnie Walsh took over in April 2008. Sure, we all want to hang onto Gallinari. Or Randolph. Or Curry (how often have you heard that). And, well, sacrifices have to be made.

Some people say they want to wait to see how this team works out. But when an opportunity presents itself, I’m not taking chances. If this move is not made, there will be relentless rumors surrounding another target. The Knicks are an incomplete team. Yeah, Carmelo is not an optimal fit, but I’m done waiting.