New York Knicks

The New York Knicks may be the defending NBA champions, but with the 2026-27 approaching, the focus will be turning to how they can win another title. Retaining their well-known starting five appears to be the biggest hurdle in the years to come.

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While Jalen Brunson, OG Anunoby and Mikal Bridges are all under team control for another two full seasons at minimum, the long-term contract situations of Josh Hart and Karl-Anthony Towns have been more up in the air. Hart has a club option for 2027-28, while Towns has a player option.

Considering his status as one of the NBA’s best all-around big men, a Towns extension appears to be a priority for the Knicks — but so far, they haven’t been able to come to an agreement.

Here’s a full breakdown of Towns’ contract situation with the Knicks heading into the new season.

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When can Karl-Anthony Towns sign an extension?

Towns became eligible for an extension with the Knicks in August 2026, and he’ll remain eligible to sign one through the entire 2026-27 season, until June 30, 2027.

How much can the Knicks offer Karl-Anthony Towns?

Towns, 30, is eligible for a maximum extension worth four years and $276 million. That deal would keep him with the Knicks through the 2030-31 season, when he’s 34 years old.

What is Karl-Anthony Towns’s current contract?

Towns is entering Year 3 of the four-year, $220 million extension he signed with the Timberwolves in 2022, which kicked in for the 2024-25 season.

He carries a cap hit of $57.08 million this season, per Spotrac, which is tied with Devin Booker for eighth among all players. 

Towns also has a player option worth $61.02 million for 2027-28; if he picked it up, he would hit unrestricted free agency in the summer of 2028, rather than next summer.

What would Karl-Anthony Towns’s extension pay him each season?

If Towns landed his maximum extension of $276 million — which appears unlikely — he would carry an AAV of $69 million per season.

That AAV would easily be the highest among all NBA centers, surpassing Joel Embiid’s $62.6 million, and it would also be the highest AAV for any NBA player, surpassing Jayson Tatum’s $62.8 million.

In reality, the Knicks and Towns will likely have to meet somewhere in the middle.

What are the Knicks offering Karl-Anthony Towns?

ESPN’s Shams Charania reported on Oct. 5 that the Knicks’ latest offer to Towns was a four-year deal worth approximately $200 million.

That’s a difference of $76 million compared to what Towns is eligible to make — and the reason for that contrast is potential «major second apron concerns, a space Knicks owner James Dolan has shown no interest in occupying,» per ESPN. The Athletic’s James L. Edwards III also reported on Sept. 23 that New York won’t put a full max on the table.

.@ShamsCharania gives an update on Karl-Anthony Towns’ potential contract extension with the Knicks 🏀 https://t.co/3WKGJluSfl

— NBA on ESPN (@ESPNNBA) October 5, 2026

The Knicks’ four-year, $200 million offer would pay Towns an average of $50 million per season, a drop from his $57.1 million cap hit this season; the $50 million AAV would make Towns the fifth highest-paid center in the NBA, per Spotrac, trailing Joel Embiid, Anthony Davis, Nikola Jokic and Bam Adebayo.

Read more NagaCorp GGR Falls 21.5% to US$417.9M in the First 9 Months

Considering Towns is coming off a four-year, $220 million deal, he could wind up signing an extension similar to that one, balancing his value to the Knicks’ desires to save money.

What happens if Karl-Anthony Towns doesn’t sign an extension?

Towns will be able to sign an extension offer throughout the 2026-27 season. However, if he chooses not to do so and can’t come to terms with the Knicks, he’d arrive to the summer of 2027 with a few options.

The simplest route, if he wants to remain a Knick, would be to pick up his $61 million player option for 2027-28, then continue working on an extension agreement before he would hit free agency the following summer.

To return to New York, he could also decline his option next summer, but accept a deal with more future guaranteed money.

If Towns reaches a point in which he’s ready to move on from the Knicks, or vice versa, the big man could become a free agent next summer by declining his player option, or work on a sign-and-trade with the Knicks.

What has Karl-Anthony Towns said about his Knicks future?

Towns recently admitted before the start of the 2026-27 season that «it don’t look good,» when asked if he would be coming to an agreement on an extension before the Knicks’ season opener.

Per ESPN, Towns said that he wants «to do something that can keep the team together and work with the Knicks and also values me,» but «none of those things have come close to happening.»

However, he’s also been fairly blunt about the fact that he believes he deserves the extension after helping bring a title to New York. When asked if he thought he deserved the new deal, he was candid.

«No s—, Sherlock,» Towns said, per ESPN. «I just won a championship. You’d think it was pretty easy. Unless you guys [reporters] think I have something else to prove.»

Why wouldn’t Karl-Anthony Towns sign an extension?

The issue in Towns extension talks appears to be far less about his desire to play for the Knicks than how much he believes he’s worth vs. how much New York is willing to pay.

Towns likely hasn’t yet signed an agreement because he believes he should remain one of the higher-paid centers in the NBA, but with the Knicks already paying Brunson, Anunoby and Bridges significantly, they won’t be able to go too deep into a Towns contract without second-apron penalties.

The Knicks are unlikely to go anywhere near the $276 million that Towns is eligible for due to the cap ramifications it would have. While Towns appears willing to accept that he won’t be getting a max deal, he’s trying to land the largest contract possible that doesn’t handicap New York in years to come.

MORE: LeBron James reveals how close he was to joining Knicks

Could the Knicks trade Karl-Anthony Towns?

Considering the Knicks are riding the high of a championship still, and Towns has been a beloved player for the organization, it’s still very unlikely his contract situation results in a split. He’s proven to be the perfect fit in the Knicks’ frontcourt.

However, if Towns is adamant about getting closer to his max extension figure of $276 million and won’t accept much of a pay cut from the Knicks, things could eventually take a turn for the worst — especially if the upcoming season doesn’t go well for New York.

In an instance where the Knicks don’t make a deep playoff run this coming season, don’t see a fit with Towns anymore and remain unwilling to pay him a significant deal, he could become a trade candidate by next offseason.

What’s far more likely, though, is that New York and Towns can meet somewhere in the middle on a contract that preserves the team some flexibility, but keeps the big man among the higher-paid centers in the NBA. Towns won’t be traded anytime soon — but if his extension situation lingers into next offseason, it’s not unfathomable.

Read more NagaCorp GGR Falls 21.5% to US$417.9M in the First 9 Months