Kevin Martin doesn't think the team will be that shorthanded without Trevor Ariza, who was dealt to the Hornets earlier this month.

"It shows how much faith Daryl has put in our other 3s -- in Shane and Chase [Budinger]," Martin said.

"With the starting lineup we have now, Shane is the defensive stopper, and that helps us a lot there. Those guys will have to pick up Trevor's production on both ends of the court. I think we have a great system that allows other guys to do that."

The Knicks won't just be contending with other NBA teams in the race to acquire Carmelo Anthony should the Nuggets elect to complete a trade.

Marc Berman of The New York Post writes that the Knicks could lose out to a team like the Rockets because of tax laws.

Texas doesn't have a state income tax.

LeBron James signed with the Heat this summer, joining Dwyane Wade and Chris Bosh.

Florida is another state without a state income tax.

Yao Ming has clarified comments made earlier this season that seemed to indicate retirement was a possibility in the not-so-distant future.

The comment came out of China last month. He mentioned the possibility of retirement if his foot didn't heal properly.

He was cleared for basketball activities this week.

"That entire interview was talking about the future of Chinese basketball," Yao said. "I told them however long I can play, one day I will retire. This team needs to learn how to play without me, either now or later. Sooner is better than later.

"I also told them, the worst case, I'm just saying the worst case, the worst case, is that I don't go through the season and have to retire after the season. They only put that part in the story. That interview was only about how to develop Chinese basketball."

Yao Ming has been cleared by team doctors to resume basketball activities.

Yao missed last season after undergoing complex surgery on his left foot.

He will begin working out without any physical limitations.

Houston is expected to limit Yao's minutes early in the season.

Nuggets executive Josh Kroenke met with Carmelo Anthony in Baltimore over the weekend and began the process of trying to sell him on a contract extension, according to league sources.

No resolutions were reached, but Kroenke, the owner's son, has undoubtedly emerged as a powerful voice in the franchise.

Anthony has hesitated to sign a three-year, $65 million extension and expressed interest in opting out of his contract next summer to become a free agent.

Despite speculation that Anthony would prefer a trade to the Knicks, two sources close to Anthony claim that his interest in New York has been overstated and that he has expressed more enthusiasm privately about joining the Rockets.

The Rockets signed rookie point guard Ishmael Smith to a multi-year contract on Monday.

Smith led Houston in assists during the 2010 NBA Summer League in Las Vegas.

An undrafted rookie, Smith played four seasons at Wake Forest.

The Rockets on Thursday announced they are close to adding three players to their training camp roster, expecting to complete contracts with guard Ishmael Smith, center Jordan Eglseder and guard/forward Antonio Anderson, a person with knowledge of the deals said.

If the Rockets or Nets can present an offer that is agreeable to the Nuggets, Carmelo Anthony is open to being traded to, and signing a long-term extension with, one of these two clubs.

The story was reported by Chris Mannix of Sports Illustrated, citing multiple league sources familiar with the situation.

The Knicks are believed to be Anthony's top choice.

Trevor Ariza was traded to the Hornets on Wednesday as part of a four-team trade.

His departure may help team chemistry, as Ariza reportedly had a 'troubled relationship' with Aaron Brooks.

The Rockets traded Trevor Ariza on Wednesday and Jerome Solomon of the Houston Chronicle speculates that the move might be setting up a much bigger trade.

"The Rockets' brass will say how much they like him, blah, blah, blah, but initially Lee's biggest contribution to the team will be his salary, not his play," Solomon writes.

"Rockets general manager Daryl Morey traded a pawn for a pawn, but one pawn cost some $5 million more than the other, earning the Rockets a valuable $6.3 million trade exception.

"The flexibility that offers and the mega savings to Leslie Alexander's bank account (about $10 million in salary and luxury tax) made this a pretty sweet deal."