"The Knicks have acquired Tracy McGrady in a three-team trade with the Rockets and Kings.

Yahoo! Sports says Mcgrady and Sergio Rodriguez will go to the Knicks; Kevin Martin, Jared Jeffries and picks got to Houston; and Larry Hughes, Carl Landry, Joey Dorsey go to Sacramento.

If that report is accurate, the Knicks would hold on to rookie Jordan Hill.

Early this morning, Rockets GM Daryl Morey and the Kings agreed in principle to a swap of McGrady and Landry as the principals to Sacramento for a deal featuring Martin.

Tellem said the Kings may be willing to take both Jared Jeffries and rookie Jordan Hill, which would clear the enough cap room for the Knicks to sign two maximum free agents. Tellem said additional first-round picks may not have to be involved, meaning the Knicks' three-way deal with the Kings and Rockets is more beneficial than the original two-team proposal with the Rockets.

With these turn of events, there's a small chance of the Nate Robinson deal to Boston being in jeopardy if Robinson is needed in the Kings' package.

The Knicks could also get guard Sergio Rodriguez in the three-way deal.

The changing landscape of the McGrady Sweepstakes was endless, as Morey has sought bargaining leverage throughout the process. He wanted to make a proposed deal with the Knicks, but the teams were engaged in rough negotiations yesterday."