Karl-Anthony Towns and the New York Knicks remain apart on a potential contract extension as the defending NBA champions prepare for the new season. The latest reporting suggests the disagreement is centered on how much New York wants Towns to reduce his potential earnings.
Towns is eligible for a four-year extension worth up to $276 million, but the Knicks have reportedly been seeking a deal below his maximum extension. ESPN’s Malika Andrews reported that Towns is willing to take a pay cut, although he considers the reduction New York has proposed unreasonable. The precise terms of the Knicks’ proposal have not been publicly disclosed.
The situation adds another layer to an offseason filled with financial decisions for the Knicks. Towns helped the franchise win its first championship in 53 years, but New York is also trying to manage its position near the NBA’s second salary-cap apron.
Towns reportedly rejected Knicks’ proposed discount
Towns is reportedly open to making a financial concession, but the dispute centers on how large that concession should be. Andrews said he views the reduction requested by New York as unreasonable.
The comparison to Jalen Brunson’s pay cut is about principle, not matching numbers. Towns still wants to remain with the Knicks, while the team’s exact reported offer has not been publicly confirmed.
Knicks face major salary cap pressure
New York’s financial position is a central part of the negotiations. Reports indicate that owner James Dolan wants the organization to avoid moving above the NBA’s second apron, which imposes additional limits on how the championship roster can be maintained.
Towns is scheduled to earn about $57.1 million during the 2026-27 season. He also has a player option worth roughly $61 million for 2027-28, giving him another significant financial decision if the sides do not reach an extension.
The Knicks already have several substantial contracts on their books. Mikal Bridges signed a four-year, $150 million deal, while future extension decisions involving Brunson, OG Anunoby, and Josh Hart add to the team’s longer-term payroll concerns.
Brunson’s previous sacrifice shapes negotiations
The Knicks’ approach to Towns has reportedly been influenced by Brunson’s previous contract decision. In 2024, Brunson agreed to a four-year extension worth about $156.5 million rather than pursuing a larger potential contract later.
That agreement provided New York with additional flexibility while Brunson remained one of the team’s central players. The Knicks are now reportedly hoping Towns will make a comparable sacrifice to help preserve the championship roster.
Towns’ situation is different, however. His current contract was signed with Minnesota before he was traded to New York, and he is now coming off a season in which his value was reinforced by a championship run. The two sides, therefore, have different considerations as they determine the size of any new agreement.
Towns strengthened his case during playoffs
Towns was an important part of New York’s championship season. During the 2025-26 regular season, he averaged 20.1 points, 11.9 rebounds, and 3.0 assists over 75 games.
His scoring dropped during the postseason, but his all-around contributions remained significant. Towns averaged 15.9 points, 10.6 rebounds, and 4.9 assists while shooting 55% from the field across New York’s 19 playoff games.
His defensive work also drew attention during the Finals against San Antonio. The Knicks defeated the Spurs in five games, completing a 16-3 postseason and securing the franchise’s first championship since 1973.
Fun fact: Towns was selected No. 1 overall in the 2015 NBA Draft by the Minnesota Timberwolves.
New York still wants Towns long-term
Despite the stalled negotiations, there has been no indication that the Knicks have given up on keeping Towns. The organization continues to view him as an important piece of the team that just won the championship.
Towns has also been explicit about his desire to remain in New York. At media day, he said he had made it clear that he wants to play for the Knicks and would like to finalize an extension.
The disagreement is therefore primarily financial rather than a reported desire by either side to end the partnership. Towns can still sign an extension during the season, meaning the current impasse does not automatically determine what happens next.
Fun fact: Towns won the 2015-16 NBA Rookie of the Year award after averaging 18.3 points and 10.5 rebounds as a rookie.
More Knicks contracts are approaching
Towns is not the only major contract decision facing New York. Hart is also eligible for an extension, while Brunson and Anunoby can become eligible for new deals next offseason.
Brunson’s next contract could become particularly important because his previous extension gave the Knicks considerable financial flexibility. The team will eventually have to determine how much it can commit to its core players without crossing the second apron.
New York has already made one notable roster decision tied to those financial constraints. Mitchell Robinson left the Knicks in free agency and agreed to a three-year, $47.4 million deal with the Boston Celtics. Reports indicated that the Knicks did not match Boston’s offer amid their broader payroll considerations.
Extension talks can continue during the season
The current disagreement does not mean Towns is headed for an immediate departure. New York and Towns can continue discussing an extension during the season, giving both sides time to find common ground.
Reports say talks have made little recent progress. Earlier estimates put Towns’ maximum extension near $273 million, while newer ESPN-based calculations place it around $276 million, reflecting eligibility rather than a publicly confirmed Knicks offer yet.
Knicks face difficult financial decision
The Towns negotiations ultimately involve more than one player’s salary. New York is attempting to keep a championship roster together while also staying within the financial limits the organization has established.
Towns appears willing to compromise, but reports indicate that he does not view the Knicks’ current proposal as acceptable. Because the proposal’s exact terms have not been publicly disclosed, the size of the financial gap remains unclear.
For now, both sides still have reasons to continue working toward an agreement. Towns wants to remain in New York, and the Knicks have a major role for him after their championship season. The question is whether they can agree on a number that works for both sides.
TL;DR
- Karl-Anthony Towns reportedly views the Knicks’ requested pay cut as unreasonable, although he remains willing to consider taking less than his maximum.
- Towns is currently eligible for a four-year extension worth approximately $276 million.
- The Knicks are trying to manage their payroll around the NBA’s second salary-cap apron while maintaining their championship core.
- Towns averaged 20.1 points and 11.9 rebounds during the regular season before contributing 15.9 points and 10.6 rebounds during the playoffs.
- Both sides remain interested in continuing together, and Towns can still negotiate an extension with New York during the season.
- The exact terms of New York’s reported proposal have not been publicly confirmed.
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This article was made with AI assistance and human editing.
