They can't
Most they can offer is 4 yr deal at around 18.2 mill per year not bad but not max
Thing is with Phil saying he wants melo to take a pay cut he leveling the playing field for everybody else like Houston and Chicago although Houston a little lower at what they can offer around 16 mill.
This is why this makes no sense to me. Ny biggest leverage was the money. Phil is basically begging melo to leave at this point and he doing it in a way where the fans won't be upset with him cause he can spin it as melo unwilling to take a paycut to help the team making melo the selfish one when in reality Phil pushing dude out the door but being slick about it so he won't get back lash
NY's Biggest leverage is still the money, you just have to look deeper into the CBA beyond the idea of a Kobe Max.
The knicks can still give Melo that 5th year and a greater 7.5% increase on his salary every year compared to the bulls and rockets who unless the knicks agree to Sign and Trade him will only be able to give Melo 4.5% increase a year and a 4th year.
If anything Phil isn't bidding against himself. Melo can go to the bulls and rockets for the 18 I believe max plus a 4th year at a 4.5% increase or he can stay in NY for 18 Million Max plus a 5th year at a 7.5% increase. Or he could convince those teams to sign and trade for him for the money he wants (Kobe Max) and the knicks will get assets in return for the 23 million (because thats the only way he gets a kobe max). The bulls and Rockets have created the Market, Phil is just responding to it.
What your seeing here is Phil being a competent business exec. Add to the fact both teams look like they need a lot more than just Melo to be real contenders and I think it becomes clear Melo won't leave unless its for the money and yeah the Knicks are going to get something for him. Also no i do not think the knicks are willing to give Melo that kobe max.
EDIT: I just did the math if Melo leaves and signs for 18 for 4 years he will see an additional 8 million dollar increase in his salary over 4 years. If he stays with the knicks for 18 he'll get an additional 38 million (this sum includes the 5th year) over the 5 years of his contract. So basically the knicks can still offer him 30 million more than anyone else if he takes a pay cut plus that 1 year of extra security. They should call this the Lebron rule because he made it this way.
shyt even if the knicks offered him 16 he would still make more playing for the knicks over the life of the contract compared to playing for the Bulls or Rockets at a higher starting salary of 18.