PJax had damn near zero options with no picks, overpaid players and no talent outside of Melo. Tyson Chandler had openly said he didn't want to be part of a rebuild and had spent almost a whole season halfassing because he didn't like the system he was in. Raymond Felton was the worst starting PG in the league.
Phil managed to move disgruntled Tyson and get rid of Felton's bum ass for a couple of second rounders and an at least decent PG.
He managed to keep a franchise talent and dude even took a modest pay cut (if you think re-signing Melo was a mistake, you should pay more attention to how tough it is to get a franchise player to sign as an FA to a new team...Morey had to acquire Harden by trade to convince Dwight, the Mavs had Dirk and still had to trade for guys that franchises were ready to move on from, the Pistons big FA run was Brandon Jennings and Josh Smith whom they just released and that's just a few examples).
He got Cleanthony Early in the draft which is a pretty nice gain and Thanasis has athletic potential (he's put up some really impressive stat lines in the D-League but that's not saying much...still, dude's an athletic beast)...both those guys are products of the Tyson/Felton dump, which is probably a better return for a guy who has announced he's not interested in returning and a guy who outright sucks with years on his contract.
And with all of his limitations, he still left 2015 FA period open with enough money to make some splashes. He hasn't established a core for this team because there was no way to do that. He basically took a mulligan for this season, sold the Knicks fans on the fact that the East is so weak we might still sneak into a playoff spot (not on the team being very good at all) and the worst case scenario which is happening now...leaves us in line for Okafor, Towns or Mudiay.
I'm not saying he did a great or even good job...but dude didn't have any options. You're gonna have to wait until the offseason to really judge his merits, that Tyson trade wasn't bad at all imo. Dude would not be playing hard for this team and we sucked with that roster, so why not take a shot at some youth? My biggest problem with him is not shutting Melo down yet. Dude is clearly playing hurt despite putting up some nice numbers and it's not winning us games anyway.