Some already predict that the contract situation surrounding Karl-Anthony Towns and the New York Knicks — and the resulting distractions — could cost the franchise a chance to repeat as NBA champions.
While the Knicks have reportedly tabled contract talks with Towns until later in the season, there is still optimism that an agreement will eventually be reached. Per New York Post’s Stefan Bondy, both the Knicks and Towns are keen to get a deal done.
“Logic indicates the Knicks and Towns will agree to an extension,” Bondy wrote.
“They make the most sense for each other. Like Simon & Garfunkel or The Beatles.”
The Knicks insider then broke down why Towns, who holds a $61M player option for 2027–28, might not have the leverage to command a max contract.
Knicks Have ‘Leverage’
“We asked for Towns’ value around the league and the different paths this saga might travel,” wrote Bondy after spealing to three NBA execs and two high-powered agents.
“The consensus responses were twofold: 1) Free agency stinks for players nowadays, and 2) the Knicks likely value Towns more than the rest of the league does.
“Those are bad developments for Towns’ leverage, but he does hold a $61 million player option for the 2027-28 season, which swings the power dynamic back toward the player,” added Bondy.
Towns, who turns 31 next month, has until June 30, 2027, to decline his player option and either sign an extension or enter free agency. If he signs an extension before Oct. 19 without declining the option, it will simply replace his player option for that first year.
“Put another way: Towns has until the end of June to negotiate. There’s no time crunch,” added Bondy.
Could KAT Leave Knicks?
If Towns tests free agency next summer, Bondy expects the LA Clippers and Chicago Bulls — both expected to have ample cap space — will be strong suitors.
“Only a few possible suitors stand out to me right now in terms of cap space teams and fit,” an Eastern Conference executive told Bondy.
“Chicago and the Clippers have the cleanest path. The Nets can get there with the money, but that’s not a good fit. Golden State and Dallas could get around [$50 million] in space with more tinkering.”
The executive said he would be hesitant to pay Towns in excess of $60M.
“I wouldn’t feel great about giving him his actual max in 2027-28 [about $61 million]. I would feel better in the $45-50 million range.”
Per multiple league sources, the Knicks offered Towns a four-year, $200 million extension — nearly $80M below the maximum allowed. Towns was reportedly unhappy with the offer, sparking a public contract dispute with the franchise. The 6-time All-Star publicly expressed disappointment when the Knicks tabled contract talks.
“It was news to me,” he said of the Knicks’ statement.
“Very disappointed to say the least. Let’s state the obvious: It’s business, but there is business on the court for us to handle.”
Knicks Get Vital Karl-Anthony Towns Update Before Season Opener