This hurts the Knicks more. They've been overestimating their position in free agency, and it's more likely to back fire on them then not. Now with Chicago having room, Wade is going there or staying in Miami, and I don't see Bosh leaving Toronto.
James is probably the most likely, but even then that has an incredibly low chance of happening. Now when they come up empty handed and having to give Joe Johnson a hefty contract, they wont have the chance to rebuild through the draft for 2 more years.