The New York Knicks are the defending NBA champions, a title they earned, but as the 2026-27 season gets going, their biggest challenge might not be on the court. It is about keeping their championship core together, and the long-term contract situation for Karl-Anthony Towns is the biggest headache right now. While guys like Jalen Brunson, OG Anunoby, and Mikal Bridges are locked in for at least two more seasons, Towns, one of the NBA’s best all-around big men, has a player option for 2027-28 and no extension agreement in sight.
The Big Man, The Big Bucks, And The Big Standoff
Towns became eligible for an extension back in August 2026, and he has until June 30, 2027, to get a new deal done. This isn’t some minor negotiation, folks. Towns is eligible for a four-year, $276 million maximum extension. That kind of money would keep him with the Knicks through the 2030-31 season, when he would be 34 years old. He is currently entering Year 3 of the four-year, $220 million deal he signed with the Timberwolves in 2022, which kicked in for the 2024-25 season. This season, his cap hit is $57.08 million, tied with Devin Booker for eighth highest among all players. And if he does not get an extension, he has that $61.02 million player option for 2027-28, which, if picked up, would make him an unrestricted free agent in summer 2028. We are talking about massive numbers for a championship team trying to stay at the top.
Why The Knicks Aren’t Breaking The Bank
So, what is the holdup? That maximum extension for Towns would carry an average annual value, or AAV, of $69 million per season. To put that in perspective, that AAV would blast past Joel Embiid’s $62.6 million for centers and even Jayson Tatum’s $62.8 million for any NBA player. It is a jaw-dropping figure, but frankly, it “appears unlikely” he would get that full max. ESPN’s Shams Charania reported on October 5 that the Knicks’ latest offer to Towns was a four-year deal for approximately $200 million. Do the math: that is a $76 million difference compared to what Towns is eligible to make. The reason for this massive gap? “Major second apron concerns,” according to ESPN, which Knicks owner James Dolan “has shown no interest in occupying.” The Athletic’s James L. Edwards III backed this up on September 23, reporting New York is simply not putting a full max on the table. They are playing hardball with their champions.
This isn’t just about one player’s salary; it is about the Knicks’ entire financial future and their ability to keep winning championships. With this huge gap, and the team clearly concerned about the second apron, an agreement is far from guaranteed. The ball is in Towns’ court, and everyone is watching to see if he will take a significant pay cut to stay with the defending champs, or if this contract standoff will drag on, leaving a massive question mark hanging over New York’s quest for another title.
This article was created with AI assistance and published under Seattle On Tap’s editorial standards. See our Editorial Policy.
Originally reported by The Sporting News.
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