Too bad the Nets lost Wednesday night in Milwaukee, especially after the Knicks won in Indiana, or Saturday’s game could have been a battle for the basement. Instead, as we wrote in today's Record, it’s a battle to avoid further embarrassment.

It’s a bad time for area basketball -- has been for a few years now. Earlier this decade, the Nets were on top of the Tri-State area. Now they’re at the bottom of the NBA with 12 losses in 12 games, and they’re looking up at everyone, including the Knicks.

It’s early, but not since the 2000-01 season, the pre-Kidd era, have the Nets finished below the Knicks in the standings. The Nets may surpass them at some point this season -- the Knicks only have two more victories than the winless Nets and they've been healthy. But right now the Knicks have the better record.

Who’s in better shape for next year, though? We say the Nets.

The Nets are committed to Devin Harris, who returns from a 10-game absence due to a groin injury tomorrow, Brook Lopez, Courtney Lee, Yi Jianlian, Terrence Williams and Eduardo Najera. They have a team option on Chris Douglas-Roberts for under $900,000. If they waive Keyon Dooling, another $2.8 million comes off their cap.

They have three picks -- two No. 1s, theirs and Dallas from the Jason Kidd trade, and a second rounder. They could have three the next year as well -– two No. 1s, theirs and Golden State’s from the Marcus Williams’ trade – and a second rounder.

The Knicks are committed to Danilo Gallinari, Wilson Chandler, Toney Douglas, Jordan Hill, Jared Jeffries and Eddy Curry for next season. They have no first-round pick –- it goes to Utah through Phoenix from the Stephon Marbury deal -– and a second rounder. The next year, the Knicks have a No. 1, but the second-round choice goes to the Lakers.

The Nets have better young players -– an All-Star point guard in Harris and a potentially dominant big man in Lopez. They will have a couple million more in free agency, have more draft picks and a billionaire owner that financed the best team in Russia and has no problem spending.

Taking that all into account, the Nets are in better position to improve quicker. How they go about it is another story.

Everyone knows both teams, who should have more than $20 million for free agents, are planning to make LeBron James their first choice when July 1, 2010 rolls around. But it may not be realistic for either team, if they lose 60 games, that they’re going to get a player of James’ caliber, or Dwyane Wade’s or Amare Stoudemire’s or Chris Bosh’s.

Logic still suggests they will stay where they are, go to a ready made contender or try and team up somewhere and make them a contender. That, of course, is the hope for the Nets and the Knicks.

Let’s get this out of the way, too: the New York cache no longer exists, not in basketball. Kidd and Grant Hill turned down the Knicks this summer. It wouldn’t surprise anyone if James and Wade and company said no to Newark, Brooklyn, Manhattan, wherever.

With all that money, the Nets have to sign someone. But the reality is they may have to aim lower in free agency and try and rebuild the way they did in 2004 after losing Kenyon Martin. Expiring contracts and draft picks landed Vince Carter.

That might be the way to go, and if so they have more to offer than the Knicks in the way of serviceable players with expiring contracts, young players with or without expiring contracts and draft picks.

So no matter who suffers more embarrassment tomorrow, the Nets are in better long-term shape than the Knicks.

Al Iannazzone covers the Nets for The Record (Bergen County, N.J.).