Following their first NBA championship in 53 years, the New York Knicks are navigating a complex offseason centered on the future contract of forward Karl-Anthony Towns. The team has one more year before the current collective bargaining agreement significantly impacts their ability to retain their core championship squad, with key decisions now pressing.
Towns is currently under contract for approximately $57 million for the upcoming season, with a player option of $61 million for the 2027-28 season. He is eligible for an extension, with the Knicks able to offer a maximum of four years and $272 million, averaging $68 million annually. Should he decline his player option and reach free agency in 2027, the standard veteran maximum would be slightly less, at $266.6 million over four years.
Towns' performance over the past two seasons, helping the Knicks reach the Eastern Conference finals and then secure a championship, has significantly boosted his reputation. He was instrumental in the team's postseason offense, showcasing playmaking abilities and improved defense, solidifying his status as an elite big man. His substantial contract, however, places him as the highest-paid player on the Knicks, a position that has been facilitated by guard Jalen Brunson's reported salary sacrifice.
Towns will be 31 next season, meaning any extension would extend into his mid-30s, a stage where players at his position often experience a decline. Meanwhile, Brunson, eligible for extension in the 2028 offseason, has indicated his expectation for the team to acknowledge his previous financial concessions.
With forward-forwards OG Anunoby and Mikal Bridges already on long-term deals, the financial landscape presents challenges. President Leon Rose and the front office have historically managed the salary cap effectively, but retaining both Brunson and Towns on maximum contracts appears financially unfeasible.
Josh Hart's contract situation also adds to the offseason complexity, with him set to earn nearly $21 million this coming season and holding a team option of approximately $22 million for 2027-28. The Knicks have already been working to stay below the second apron of the salary cap this offseason, making it unlikely that all five starters can be re-signed to significantly larger deals.
The central question remains whether Towns will opt for a contract extension below the maximum, similar to Brunson's sacrifice, or pursue a deal that reflects his championship contributions. Until a resolution is reached, his contract situation is expected to be a dominant storyline throughout the Knicks' offseason.