It was rumored this weekend, and on Monday, it's official: Baron Davis will sign with the New York Knicks in 2011-12. The Knicks announced the news on Twitter. According to the New York Times' Howard Beck, Davis will sign for the veteran's minimum salary of $1.4 million.

Initially there had been reports that Davis would assume the Knicks' "room exception" and sign for $2.5 million, but it seems Davis took less, leaving the exception available for another free agent, and giving the Knicks more flexibility going forward, should they want to add another veteran. 

For the Knicks, then, it's a low-risk investment in a backcourt that sorely needs a veteran presence like Davis. Baron's been injured for much of the past few seasons, but when he's healthy and motivated, he can be effective on a playoff team. And for Davis, himself, he's able to join a contender for the year, while still making the entire salary he was owed in Cleveland ($13.9 million in 2011/12) before the Cavs chose to amnesty him.

In other words, at least for now, everybody wins here.