I think I know why the Knicks are doing this

By acquiring Rivers in a S&T, they can absorb his salary into the Marcus Morris TPE of $3,988,766

This would give them more flexibility for salary cutting/dumping (likely Batum), as Rivers would cut into their cap space otherwise https://twitter.com/KnicksAlerts/status/1331789837318361088
If the Knicks do this and have Payton take the room exception instead, they would have ~$27M in cap space. Batum's contract is... ~$27M. If they need further flexibility, they can send Bullock or Evans in the deal too
If Knicks get Batum and then trade Randle + a couple 2nds into OKC's TPE, that might create a TPE for NYK at $18.9M

@JeffreyBellone + I are trying to confirm if you can get a TPE while you're operating as an over-the-cap team even if you dump a player into another team's TPE
JB once again showing he is the Mr. Miyagi to my Daniel LaRusso

I'm incorrect in that the MM TPE is gone

HOWEVER, NYK could get over the cap and create a TPE to then acquire Rivers

Or, the Knicks could do Rivers + asset from HOU for Bullock https://twitter.com/JeffreyBellone/status/1331800518876913670?s=20
A Rivers-for-Bullock deal would trim the payroll a bit more, giving NYK a better opportunity to absorb Batum for the cost of, say, Evans

Bottom line is a S&T is still super creative, just doesn't have anything to do with Mook

Apologies for this roller coaster of a thread
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