Karl-Anthony Towns and the New York Knicks are approaching training camp without a contract extension, and one of the biggest financial questions surrounding their championship core remains widely unresolved.
ESPN’s Shams Charania and Vincent Goodwill first reported Wednesday that extension talks have stagnated following extensive offseason discussions. An agreement is considered unlikely before training camp, with media day scheduled for Monday.
“Talks have been described to me as cordial, there just
has not been movement on a deal — especially as of late,” Charania reported.
Towns is eligible for an extension worth up to four years and $276 million, according to ESPN’s Bobby Marks. He will earn $57 million this season and holds a $61 million player option for 2027-28.
Newsday’s Steve Popper confirmed that the Knicks and Towns remain far enough apart that negotiations could linger into the regular season and potentially beyond.
New York has made it clear that the franchise wants to keep Towns, and league sources have indicated Towns is willing to accept less than his maximum contract to re-sign with the Knicks.
The central disagreement appears to be how large that discount will be. New York is attempting to preserve flexibility while owner James Dolan has publicly pushed to keep the franchise below the punitive second apron, but there might be a breaking point Towns is not willing to get past.
Even then, SNY’s Ian Begley reported that conversations have remained positive and that the Knicks have made clear they want Towns long-term. Begley also revealed that New York has discussed extension structures with Towns beginning in the $45 million-to-$50 million annual range.
Those figures would leave Towns well below his maximum, yet The New York Post’s Stefan Bondy also emphasized that neither side has abandoned an agreement even though talks have stalled a bit.
“There’s been plenty of conversations with KAT, all cordial, all positive,” Bondy reported, citing a league source. “(Knicks) want KAT to be (there) for a long time. And just because a deal isn’t done now doesn’t mean it can’t get done.”
Towns, meanwhile, publicly expressed the same desire to stay in New York last winter. “Hell yeah I want to stay here,” Towns told The New York Post in December. “Obviously, get a chance to be home, see my family. It means more than the money, you know. So just to be able to be here with the fans, be with the family. It means a lot. I would like it to continue.”
ESPN’s Brian Windhorst identified Towns’ $61 million option and the Knicks’ self-imposed second apron restriction as the heart of the negotiations and the main hurdle to clear before an agreement is reached.
“What KAT does will determine if Knicks core can stay together,” Windhorst said. “He’s got a $61 million option for not this season, next season. Knicks have said, ‘We don’t wanna be in second apron.’ If he picks up that option, they’re gonna be in the second apron.”
Windhorst believes the relationship between Towns’ agency, CAA, and the Knicks increases the chances of a deal. Knicks president Leon Rose previously represented Towns, while CAA also represents Jalen Brunson and other New York players.
“I honestly believe this is all gonna work out even if, again, you hear a little bit of wavering in the first couple of days of camp,” Windhorst said. “If James Dolan messes this up. Let Leon Rose and CAA do their business, and I think Karl-Anthony Towns will figure it out.”
The Knicks already allowed Mitchell Robinson to leave in free agency while managing their second-apron restriction. Josh Hart is also extension-eligible, while Brunson and OG Anunoby will become eligible next offseason, making for a tight cap situation in New York.
For now, Towns will report to training camp without a new agreement but ready to help the Knicks defend the title it took the franchise 53 years to reclaim.
