|

Karl-Anthony Towns extension: Knicks face huge 2027 risk

Dustin Judge
Knicks center Ariel Hukporti tosses confetti on Karl-Anthony Towns at the 2026 title parade, months before Karl-Anthony Towns extension talks stalled

Karl-Anthony Towns and the New York Knicks remain tens of millions of dollars apart on a contract extension as training camp opens, ESPN reported, making a Karl-Anthony Towns extension unlikely before the regular season begins Oct. 20.

Towns is eligible for a four-year extension worth more than $276 million. The Knicks, who won their first NBA title in 53 years in June, are operating under owner James Dolan’s directive to stay below the second apron of the luxury tax and have asked Towns to accept a significant cut from his current salary.

Where the Karl-Anthony Towns extension talks stand

ESPN’s Brian Windhorst and Tim MacMahon said on “The Hoop Collective” podcast Sept. 25 that the sides are “tens of millions apart,” and could be “eight figures apart on an annual basis,” according to RealGM. New York reportedly hopes for a deal closer to $200 million over four years.

Towns, 30, is not demanding the maximum. ESPN’s Malika Andrews reported that he “is also willing to take a pay cut, but the pay cut that the Knicks are asking him to take, he views as unreasonable,” per Bleacher Report. Towns is set to earn $57 million this season and holds a $61.1 million player option for 2027-28.

At media day Monday, Towns said he wants to stay in New York but acknowledged the unease. “I think in this situation, there is no comfortability to be had,” he said, according to Yahoo Sports. “I would like to get it done so I can step on the court and feel comfortable as possible.”

“I’ve made it known I want to play here. I’ve been a fan since I was a kid,” Towns said, according to RealGM. He said he leaves the cap math to team president Leon Rose: “You ask me to give three facts or two facts about the second apron, I can’t do it.”

Towns averaged 15.9 points and 10.6 rebounds last season, per RealGM. There is precedent for a Knicks star taking less: Brunson signed a four-year, $156.5 million extension in 2024, about $113 million less than he could have earned, Bleacher Report noted.

The Knicks’ salary cap dilemma

Dolan has said it would be “suicidal” to exceed the second apron, Yahoo Sports reported, and that stance shapes any Karl-Anthony Towns extension. The Knicks won the 2026 championship without crossing that threshold, but bigger decisions loom, with extensions for Jalen Brunson, OG Anunoby and Josh Hart all on the horizon for 2028-29.

Hart, who is earning $20.9 million this season and has a $22.3 million team option for 2027-28, said uncertainty can take a toll. “Whenever there’s uncertainty, there’s gonna be a lot of questions, there’s gonna be a lot of rumors,” Hart said, according to Yahoo Sports. “At a human level, sometimes that can wear people down and it can affect how you go out and handle business on a day-to-day basis.”

Hart is eligible for a four-year, $132 million extension of his own, though Yahoo Sports reported that talks are expected to land on a lower figure to preserve cap flexibility. “We’re humans and I think what sometimes gets lost is that we are people,” Hart said. His situation adds another layer to the Karl-Anthony Towns extension math.

What’s next

If no Karl-Anthony Towns extension is reached during the season, the Feb. 11 trade deadline becomes pivotal. If Towns declines his player option after 2026-27, he would become an unrestricted free agent in 2027. Exercising it would likely push New York into the second apron for 2027-28. For the Knicks, the risk is losing a championship center while trying to repeat.

For more on the Knicks, read about Dolan’s line on the luxury tax, Towns’ contract outlook from June and Josh Hart’s finger injury.

Reporting from ESPN, Yahoo Sports, RealGM and Bleacher Report contributed to this story.

Dustin Judge is the Founder and CEO of Total Apex Media, bringing more than 20 years of writing and editorial experience to the company's growing network of digital publications. He specializes in sports, sports betting, fantasy sports, and digital publishing, with a focus on producing accurate, timely, and engaging content for readers. Dustin oversees editorial strategy, content development, and publishing operations across Total Apex Media while remaining actively involved in sports, betting, and fantasy sports coverage.