3 Contracts Knicks should model Josh Hart’s new deal after

What is the contract situation for Josh Hart and the Knicks?

In August of 2021, Josh Hart signed a three-year, $38 million contract with one of the more unusual structures that you will see in the NBA. The third and final year of the contract was a player option (meaning Hart could decide whether to play out that year or to hit free agency) but it was also non-guaranteed. By choosing not to hit free agency, he would be putting his fate in the hands of whatever team he played for, which could choose to waive him.

Hart will almost certainly hit free agency this summer, as he has played well enough to try to secure a new contract and won’t want to put all of the power in the hands of the Knicks, no matter how amicable the relationship is.

The Knicks are already projected well over next year’s salary cap, and likely into the luxury tax, so they will be extremely limited in the contracts they can offer to free agents. Hart’s situation is different, however, as because he was traded the Knicks gained his “Bird Rights” which means they can re-sign Hart to any amount up to the max. He’s not going to command a max contract, but the Knicks aren’t limited by league rules in working out a deal.

With that being said, whatever the Knicks pay Hart will cost them much more in luxury tax payments, unless they find ways to offload salary. That’s very possible, but the reality of this team growing increasingly expensive as young players get new contracts will be looming over any contract negotiations moving forward.

So to set the table: Hart will almost certainly become a free agent, the Knicks can offer him any contract they like, and they have very real luxury tax concerns in factoring in their total team salary. What sort of a deal could the Knicks offer? Let’s look at three players around the league and the contracts they are playing on to provide some ideas.