The Knicks have two more days to match, but in doing so, they could put themselves are risk for a serious luxury tax bill. As noted by several other outlets, the final season could wind up costing the Knicks $45 million as the luxury taxes grow more stringent over the next few years of the collective bargaining agreement.
As Marc Berman of the New York Post wrote, the Knicks are naturally "unhappy" about the way the contract has been handled by both Houston and Lin. First, the offer didn't go out on July 11th, as expected, and it then took Lin two days to sign it. But nothing was more disconcerting to the Knicks than the price tag, which had previously been quite reasonable.
Houston did lose two point guards this offseason, so it's not unrealistic to believe they could have wanted to make an offer that New York wouldn't match. In any case, the Knicks will probably still match the offer, both Berman and ESPN's Marc Stein agree, but owner James Dolan must be furious knowing that his Knicks will continue to pay more luxury taxes than anyone.