The New York Knicks may have found the only realistic path to keeping their championship core intact: convincing Karl-Anthony Towns and Josh Hart to accept less than their maximum contract extensions.
James L. Edwards III of The Athletic believes it is “very realistic” that both players will agree to discounted deals. In this case, a discount does not mean either player would earn less than he does now. It means Towns and Hart would leave substantial money on the table relative to the maximum extensions available to them.
Edwards previously reported that neither player is expected to receive a maximum offer from New York. Hart’s market is easier to project because comparable role players have signed recent extensions. Towns presents the more consequential—and complicated—decision.
The Knicks are defending their first NBA championship since 1973, but the second apron places severe restrictions on high-spending teams. Owner James Dolan’s determination to remain below that line already contributed to Mitchell Robinson’s departure for Boston.
New York must now balance rewarding the players responsible for its title against preserving enough financial flexibility to sustain the roster.
Karl-Anthony Towns’ Discount Could Save Knicks Millions
Edwards proposed a potential framework that would pay Towns $135 million over three additional seasons, an average of $45 million annually.
Under that scenario, Towns would exercise his $61 million player option for 2027-28 before the extension begins. Combined with the approximately $57.1 million he will earn this season, the arrangement would commit close to $200 million to Towns over the next five years.
That is hardly a small contract. It would nevertheless represent a significant concession from a player Edwards considers one of the NBA’s top 15.
The concept is not entirely new. On Aug. 10, SNY’s Ian Begley predicted Towns and the Knicks would reach a below-max agreement, potentially beginning around $45 million annually.
“If I had to take a guess, the two sides will reach an agreement,” Begley wrote, noting that Towns “clearly loves New York.”
Edwards’ proposed three-year, $135 million extension now gives that same $45 million figure a more concrete structure. Both scenarios would fall significantly below the four-year, $272 million maximum available to Towns.
Towns helped transform the Knicks after arriving from Minnesota in 2024. New York advanced further in each of his first two seasons, culminating in the 2026 championship. His shooting changed the geometry of the offense, creating driving lanes for Jalen Brunson while forcing opposing centers away from the basket.
The negotiation turns on how each side views the final phase of Towns’ prime.
New York must decide whether it is comfortable paying the 30-year-old between $55 million and $65 million annually deep into his 30s. Towns must determine whether long-term security with a proven contender is worth accepting less than his market value.
A $45 million average would also age favorably as the salary cap rises. Trae Young is scheduled to earn more than $50 million annually after this season, illustrating how quickly star salaries have climbed.
Josh Hart Extension Should Be Easier to Resolve
Hart became eligible Aug. 10 for an extension worth as much as four years and $132 million. Nobody around the league appears to expect the Knicks to approach that ceiling.
League sources previously told Edwards that a three-year agreement worth approximately $54 million to $62 million could provide common ground. Edwards argued Hart could reasonably seek between $70 million and $80 million over three years based on contracts awarded to other high-level complementary players.
Even the upper end of that range would qualify as a discount against Hart’s theoretical maximum.
Hart averaged 12 points, 7.4 rebounds and 4.8 assists last season while shooting a career-best 41.3% from the 3-point range. His value extends beyond those numbers. He rebounds like a forward, initiates transition opportunities and can defend several positions.
He also shares a close relationship with Brunson and has repeatedly expressed how much he values playing in New York.
Hart made his preference clear in an exclusive interview with Heavy Sports.
“I love New York. I love being here,” Hart said. “Obviously, it would be amazing to end my career here.”
Hart also emphasized his desire to keep competing with the group that delivered New York’s championship.
“We’ve had the success. We know what it takes, and we’re hungry and wanting to do it again,” he said.
Those ties make his negotiation feel more manageable than Towns’.
The broader challenge remains unavoidable. Brunson will eventually require another extension, Miles McBride is entering the final season of a bargain contract and the Knicks cannot pay every contributor without crossing a spending threshold Dolan has resisted.
Towns and Hart accepting below-max extensions would not remove every difficult decision. It could, however, prevent New York from having to choose between two essential pieces of its championship foundation.
For a roster built to contend now, that may be the most valuable discount the Knicks can receive.
Knicks Could Get Major Financial Break From 2 Championship Stars