If you've been following the Ramon Sessions situation, then you a) are sick of hearing about it and b) know that Alan Hahn at Newsday has been outspoken about his expectation that Sessions ends up in Knick uniform.
So it seems rather significant that Hahn now reports that the Knicks do not in fact have a standing offer to Sessions, and are unlikely to make one unless they can clear 2010 cap room via a trade of Jared Jeffries or Eddy Curry. And that doesn't seem likely unless the Knicks are willing to give up major talent to do so.
Sessions can always just take his $1 million qualifying offer, but he probably isn't too keen on joining the PG logjam in Milwaukee, and in that scenario he'd just be a RFA again next summer (albeit without Arenas restrictions on his first year salary). If the Knicks pull out of the race, it will be interesting to see if any darkhorse teams--Clips? OKC?--emerge with more modest multiyear deals to see if they can swing a bargain.
Update: As BR noted in the comments, though Sessions can't sign a one-year deal with a team other than the Bucks, my understanding is the Knicks don't have to fully guarantee a second year. In that scenario, New York could offer Sessions more money than the Bucks this year, a clear chance to start and put up good numbers, and the chance to be an unrestricted free agent (albeit without Bird rights) next summer if the Knicks let him go. I doubt Sessions would jump at that kind of deal, but at this point it would seem obvious he's not getting the multi-year MLE deal he had his hopes set on.