The stalemate between Karl-Anthony Towns and the New York Knicks just acquired a potentially important wrinkle nearly 3,000 miles away.
Stephen Curry agreed to a two-year, $116 million extension with Golden State on Friday, a deal that reportedly came roughly $20 million below what the Warriors could have offered their franchise cornerstone. Curry’s first-year salary on the extension will be $55.7 million, preserving a significant chunk of Golden State’s projected cap space for the summer of 2027.
Cap analyst Yossi Gozlan projects Golden State could generate as much as $64 million in cap space next summer with Curry’s new salary on the books. The projected maximum salary slot for the 2027 offseason is approximately $61.6 million.
That matters in New York because Towns could be one of the biggest prizes available that summer.
Towns is scheduled to make roughly $57 million this season and holds a $61 million player option for 2027-28. If he declines it without reaching an extension with the Knicks, he can become an unrestricted free agent. His extension talks with New York have stagnated despite the sides maintaining a cordial relationship, according to multiple reports.
Now, there is another credible source of leverage across the negotiating table.
Warriors Could Afford Karl-Anthony Towns
Golden State’s situation is noteworthy because this isn’t theoretical cap space that would require dismantling an entire roster merely to enter the conversation.
The Warriors had only about $43 million in guaranteed salary committed for 2027-28 before resolving Curry’s future. Curry’s decision to take less than his maximum preserves considerably more flexibility than Golden State would have had if he signed the full two-year, $136.7 million extension for which he was eligible.
Cap projections cited Friday have Golden State potentially creating enough room for a maximum salary slot next summer.
That doesn’t mean Towns is headed to San Francisco. It doesn’t even mean the Warriors will pursue him. Plenty can change between September and July, including Golden State’s roster, Towns’ season and the Knicks’ negotiations with their All-Star center.
But contract negotiations are partly about alternatives. Towns appears to have another significant one.
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New York reportedly has discussed an extension beginning in the neighborhood of $45 million to $50 million annually, substantially below Towns’ current salary. Towns can qualify for an extension worth roughly $276 million over four years.
The Knicks have understandable reasons for seeking savings.
Owner James Dolan has publicly expressed strong resistance to operating above the second apron. That threshold is $221.686 million this season and carries severe roster-building restrictions. New York also has other expensive decisions approaching around its championship core.
Towns, however, doesn’t have to evaluate the Knicks’ offer in isolation.
He can compare it with what might await him in unrestricted free agency.
Golden State now projects as one of several teams that could possess meaningful cap space in 2027, and the Warriors are particularly interesting because Curry will still be there. The possibility of joining Curry while receiving a contract closer to Towns’ market value would give his representatives another data point when negotiating with New York.
The Knicks still have time. There is no requirement that Towns sign an extension before training camp, and both sides have publicly maintained an interest in continuing the relationship.
But Curry’s decision has altered one part of the landscape.
Golden State’s superstar took less money to give his franchise greater flexibility. In doing so, he may have inadvertently made it more difficult for the Knicks to persuade their own star to do the same.
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