NY Times and ESPN now reporting what SAS has been saying since Sunday, i.e., that the Knicks won't match Houston's offer and will let Lin walk.
I'll believe it when midnight passes; for some reason I could still see Dolan changing his mind at the last minute.
I didn't realize until reading today that, under the NBA rules, the Knicks were actually pretty limited in terms of their ability to make an offer to Lin without having another team's deal to match. Pretty screwy rules all over this deal, and I still don't know whether it turned out the way each of the parties intended, except probably Houston, which really needs a PG at this point.