Houston has already gone on record stating he will not retire. Houston is due $40 million over the next 2 years, Williams $18 over 2 years. They don't gain cap space any sooner by releasing Williams, and of course the salary cap means nothing to the Knicks. Even after the contracts of Williams and Houston end, NY will still be over the cap. Who's contract will be easier to trade next year, Williams at $9 million or Houston at $20,000,000? The knicks have Richardson, Crawford, Marbury, and also Robinson at the 2 guard positions, so where will Houston's minutes come from?
The only way this makes sense is if they have an ironclad 100% agreement from Houston that he will retire in September. If that is the case, then why not retire now? If he just wants to see if he can go, what if he decides he can go? Well you just lost out on $22 million in savings so he could sit on the bench, and be your 5th guard.
I am sorry, but this is stupid, and whoever made this decision is an idiot.