The New York Knicks may have paused discussing a contract extension with Karl-Anthony Towns, but that doesn’t mean they’re not planning for multiple outcomes.
Towns, 30, is eligible to sign a four-year extension worth approximately $276 million. Unfortunately for the Knicks, James Dolan has reportedly issued a mandate that New York doesn’t enter into the second luxury tax apron. As such, negotiations with Towns are expected to be both long and difficult.
According to Sean Deveney of Heavy on Sports, the Knicks have put the option of leaving in free agency ‘on the table’ for Towns, should he decide his future lies away from New York.
“The Knicks would be crazy to trade Towns at this point, but then, the Knicks are crazy not to have found common ground on an extension before the season started,” Deveney wrote. “So, we can’t rule out a deal if it looks like Towns will seriously weigh leaving in the summer of 2027. The Knicks have put that option on the table for him, and he will have suitors if nothing changes between now and June 30.”
In other words, the Knicks aren’t shopping Towns. They are, however, accepting there’s a reality where he could walk away at the end of the season.
Towns has two years remaining on his current deal. However, the final year is a player option. As such, he could opt out at the end of this season and become an unrestricted free agent.
Towns Reportedly Turned Down $200 Million Offer
According to Stefan Bondy of The New York Post, Towns turned down a $200 million extension offer from the Knicks this summer.
“As The Post reported, the Knicks offered Towns a deal worth four years and about $200 million, which is $77 million less than his max,” Bondy reported. “It would also be a pay cut from his current salary of $57 million.”
With that in mind, it’s clear the Knicks will need to get closer to the $276 million Towns is eligible for. How much closer is anybody’s guess. Perhaps an offer in the $220 million range could be enough to keep him around long-term.
Of course, there are other mitigating factors to consider. Josh Hart is also extension-eligible. Jalen Brunson will become extension-eligible next year, too, and having already taken a team discount once, may not want to do so again.
Towns Should Want More Than Jalen Duren
Another issue the Knicks face is that Jalen Duren’s $200 million extension with the Detroit Pistons may have raised Towns’ overall market value. After all, Towns is a better, more experienced talent than Duren.
According to an anonymous executive who spoke with SNY’s Ian Begley, New York will likely need to ensure Towns is on a higher pay scale than Duren when negotiating his extension.
“I was talking to another executive, and he said, ‘Look, their offer – around $200M for four years – that offer is what Jalen Duren is getting.’ He pointed out that you cannot ask him to take what Jalen Duren is making,” the executive told Begley. “It just doesn’t make sense. Two sides to the coin.”
Towns’ future with the Knicks will remain a hot topic all season. Unfortunately, we won’t know how this is going to play out until New York’s championship defense comes to an end.
Knicks Put Karl-Anthony Towns’ Free-Agency Exit ‘on the Table’ Amid Stalled Extension Talks