The New York Knicks have reportedly decided to hold contract extension talks, so don't expect a Karl-Anthony Towns or Josh Hart extension soon.
According to ESPN's Shams Charania, a team spokesperson for the Knicks said that the organization is preparing for the upcoming season and thus will delay contract extension negotiations "until later" in the season. While that may seem concerning at first blush, it's not something anyone should worry about too much yet.
Other eligible players in addition to Towns and Hart who are currently impacted by this decision are Miles McBride and Tyler Kolek. But the main concern here surrounds Towns, who among this group played the most integral role for the team to win the 2026 NBA Finals. New York may not make
any decisions about Hart, McBride, or Kolek until after Towns' contract is resolved.
Towns told reporters it didn't look good when he was asked if he thought that he and the front office would come to terms before the upcoming season begins. Towns was reportedly offered an approximate $200 million extension, per The Athletic, but he is eligible to receive an extension up to $276 million.
The big man has a player option where he can opt-in to his deal for $61 million in 2027-28 . New York has reportedly offered between $45 and $50 million average annual value during recent contract conversations.
He would have to decline his player option to accept an extension. Because there is obviously a very large delta between those two numbers, it makes sense why he won't decline the $61 million if it meant instead dropping his annual contract by at least $10 million.
Towns assuredly thought that negotiation conversations would go smoother considering he is coming off winning his first NBA title, defending San Antonio Spurs superstar Victor Wembanyama in the process. But with the Knicks facing the restrictive second apron within the salary cap, it is a bit more complicated.
When will the two sides resume negotiations? They will have until June 30, so there is plenty of time, and there is actually some precedent for in-season extensions. A few months before the Milwaukee Bucks won the title, former guard Jrue Holiday signed an extension in April 2021.
In that context, however, his average annual value on his extension was higher than the player option he denied in order to sign it. That's highly unlikely to happen for Towns based on all reporting so far, but it doesn't mean that he is heading out the door before the trade deadline.
Towns is reportedly "willing to take less" than his max deal, and ultimately, it's not something that fans should stress about too much. The Knicks will likely realize they have a better chance to win with him in their frontcourt and he will likely realize that New York gives him the best chance to win, too.
If it gets dicey, Towns can reject the player option and become a free agent this summer. But are their other suitors who would offer more money than the franchise he just helped win their first championship since 1973? That's hard to say, but until then, the Knicks will contend with him on the roster.
This article originally appeared on For The Win: Knicks' delay on Karl-Anthony Towns contract extension isn't cause for panic yet
