I’ll leave it to Yahoo Sports to succinctly summarize the glitch with the deal, and it’s ultimate resolution:

The two sides were unable to finalize the initial iteration of the deal before the clock struck midnight on Monday morning, marking the start of the league’s new fiscal year and the onset of new salary figures for all the players involved in the deal. Bargnani’s salary increased by $750,000, while the total amounts owed to Novak and Camby decreased by just over $510,000; for the deal to work under the salary-cap rules in the NBA’s collective bargaining agreement, the Knicks will have to send another player north of the border, with minimum-salaried reserves Quentin Richardson and Earl Barron appearing to be likely targets.

Reliable sources also confirm this:

I have heard the Knicks-Raptors deal is agreed upon with Quentin Richardson being signed-and-traded to make the deal work. Official July 10. — Al Iannazzone (@Al_Iannazzone) July 1, 2013

Here’s more from Iannazzone:

The Knicks will send Marcus Camby, Steve Novak, Quentin Richardson, a 2016 first-round pick and second-rounders in 2014 and 2017 to Toronto for Bargnani, league sources said. Richardson will be signed and traded, so the deal can’t be official until the NBA moratorium is lifted July 10. The original trade that the two sides agreed upon Sunday night did not include Richardson. But it needed to be approved by the NBA by midnight because players’ salaries change on July 1, which is the start of free agency.

Richardson was signed to a three-year deal, only one of which is guaranteed:

Quentin Richardson received a three-year deal – one year guaranteed – in order to complete Knicks trade for Bargnani. Announcement July 10th — Frank Isola (@FisolaNYDN) July 1, 2013

This is Richardson’s tweet following the trade: