(Note: For more information on CBA terms and their impact, read this breakdown from June 2024.)
We’re midway through the 2025-26 season, and the Knicks are in a solid spot.
They woke up the morning after the trade deadline with a 33-18 record, fully recovered from the January swoon that nearly saw management press the panic button, and tied for second in the Eastern Conference. They even figured to bolster the bench by acquiring Jose Alvarado and opening up space to sign a 15th player in the buyout
market.
It’s a lot of work exploring every nook and cranny of NBA business. Thankfully, SBNation is partnering with SalarySwish to use their data and help answer every question we have about the Knicks’ financial situation and what it might mean this offseason and going forward.
Below are the full, comprehensive details from SalarySwish, as well as an FAQ breakdown.
Knicks Roster, Salaries, Draft Picks, Cap Space and More
Here is a table with all of the Knicks’ salary information, courtesy of our friends at SalarySwish:
FAQ
Now, let’s answer some of your most frequently asked questions about the Knicks’ salary cap and draft pick situations moving forward.
What is the Knicks’ cap situation?
According to Salary Swish, the New York Knicks have a projected cap hit of $206.7 million for the 2025-26 season with 14 players rostered, leaving them $52 million over the projected salary cap. They are $18.7 million over the luxury tax and $10.7 million over the first apron, but remain $1.15 million under the second apron with a hard cap at the second apron.
The team, prior to trading Guerschon Yabusele, was not able to sign a 15th player in the buyout market until early April. That changes now, as the team opened up an extra $1 million and can sign a player immediately, provided they made under the mid-level exception ($14 million) on their initial deal.
Looking ahead to the offseason, the Knicks already have over $200 million allocated next season, despite losing Mitchell Robinson, Jordan Clarkson, and Landry Shamet to free agency. Jose Alvarado’s $4.5 million player option will also go a long way towards whether the team can stay out of the second apron. If he accepts, they have under $17 million in space.
Is the second apron inevitable?
For those living under a rock, here’s a second apron explainer. You do not want to be there.
The second apron is currently causing everyone in Cleveland to panic about their timeline. Why do you think they traded for James Harden? The vaunted apron has already caused (rather successful) teardowns in Phoenix and Boston, and could come for teams like Orlando next.
As of right now, the Knicks will probably be a second-round team next year if they want to be serious about competing. Alvarado could very well decline his player option if he performs well, so he’ll need a raise. As will Shamet. We all know the value of Mitch, as well. Well, you not only have under $22 million in space to sign these three, but an additional minimum contract or two.
Now, this is assuming the Knicks don’t do anything seismic in the offseason, which could very well happen if they flame out in the playoffs. Say they trade Karl-Anthony Towns and his bloated $57 million salary, and that creates space; they’ll be able to stay under. What if they go after Giannis? That’ll likely hard cap them once again due to the rule of aggregating salaries.
How much will the Knicks pay in luxury taxes this year?
SalarySwish currently estimates about $40 million, which is a pretty penny.
This is the team’s second year in the luxury tax, so it’s not cataclysmic yet. It will be next year. It’s hard to project a luxury tax rate next year, but do not be surprised if the bill is nine figures, which will begin to test the mettle of James Dolan if the team isn’t bringing home a Larry O’Brien Trophy.
Who are extension candidates?
Mitchell Robinson is currently extension-eligible, but it is not going to happen in-season. He wasn’t dealt at the deadline, so we have to assume they at least have some interest in retaining him to a certain price point.
Two players become extension-eligible this offseason, and one became eligible in December. All three are intriguing.
Deuce McBride is already extension-eligible and can make up to $95 million on his next contract. While he’s signed through next season on a criminally cheap contract, the Knicks will eventually have to pay up for his services. With the second apron looming, do they really want to do that?
Josh Hart becomes eligible this offseason, but I don’t see that happening. He’s under contract through next season and has a $23 million team option for 2027-28. He’ll be 33 in 2028, so giving him a further extension feels unlikely, especially considering he might not play much longer than that.
Karl-Anthony Towns is eligible for a gigantic extension that he won’t receive. It’s nothing personal; it’s just not wise to give $260 million over four years to a player coming off his worst season in a good bit.
What draft picks do the Knicks have?
The Knicks were able to shed salary and make an upgrade, and it only cost them two inexpensive second-round picks. The picks they traded, specifically, were a (likely) Pistons 2nd this year and a convoluted pick from next.
Unless the Wizards manage to stumble their way out of the top eight, the Knicks will have their own first and seconds in the 2026 draft. If/when the Wizards pick doesn’t convey, the Knicks will possess Washington’s second-round pick in both 2026 and 2027, which could give them a pair of top-40 picks.
Aside from those two likely picks, the Knicks have six additional second-round picks through 2032. If you’re looking at the trade market, the team will be able to trade two unprotected firsts (2026, 2033) as soon as the NBA Draft occurs. They additionally have two pick swaps available due to the Stepien Rule in 2030 and 2032.
If you want to take the role of GM and mock up some trades, check out FanSpo or ESPN’s trade machine. And don’t forget to check your numbers with Salary Swish!
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