The New York Knicks have opted to walk away from contract extension negotiations with Karl-Anthony Towns until later in the season. It's a risky decision, as it could alienate a cornerstone of the championship-winning team and a key member of New York's push to win another title.
Though there is a degree of rational caution behind the Knicks' decision, Towns could realistically make them wish they'd extended him sooner by playing his way to a higher price point.
Towns is coming off of a career-defining year during which he bought in on defense, evolved his offensive role, and anchored a championship effort. With three straight Conference Finals appearances now under his belt, the case for a big payday is clear to see.
Unfortunately, the Knicks offering Towns four years and $200 million didn't seem to do the trick—and instead of continuing to negotiate, the front office is opting to focus on the games themselves.
New York's decision to proceed in this manner means Towns will need to decline his player option for the 2026-27 season in order to sign an extension. Perhaps that was a perceived formality, but it's a development that has positioned the six-time All-Star to make himself all the more expensive to keep.
If Towns checks the following boxes, then the Knicks will likely pay even more than currently reported to ensure their future includes their resident anchor.
3. Prove elevated defensive role won't impact his shooting
Towns is one of the greatest shooting big men of all time. Through 11 seasons, he boasts career averages of 22.8 points and 1.7 three-point field goals made on .522/.397/.840 shooting. He's also a career 37.3 percent shooter from beyond the arc in the playoffs.
Though Towns was still efficient in 2025-26, his volume and efficiency declined. If he rectifies that issue, it'll be even more difficult to avoid paying him top dollar.
Towns buried 1.8 three-point field goals per 36 minutes during the 2025-26 regular season—his lowest mark since 2017-18. He also shot 36.8 percent after two straight seasons during which he comfortably cleared 40.0. Perhaps it was a matter of playing harder on defense and having tired legs on offense.
The good news is that Towns shot 45.6 percent from beyond the arc during the playoffs. In saying that, he did so while averaging 15.9 points per game—once again, his lowest figure since 2017-18.
If Towns can return to elite efficiency as a shooter and maintain star-caliber production as a scorer in his elevated defensive and playmaking roles, the Knicks will have a hard time avoiding a top-tier payout.
2. Translate evolution as a playmaker to a new season
One of the signature elements of the Knicks' championship run was the strategic change they made on offense. Towns became significantly more involved as a playmaker, oftentimes operating as the proverbial hub of the offense at the top of the key, elbow, and even three-point line.
Jalen Brunson is still the engine who both creates and finishes the Knicks' clutch offense, but if Towns can translate his evolution as a playmaker to a new year, his market value will skyrocket.
Towns averaged 3.0 assists in 31.0 minutes during the regular season before jumping to 4.9 in 30.4 minutes during the playoffs. His scoring declined, but his involvement increased as he made the Knicks less predictable on offense and truthfully turned around a first-round series that saw New York fall into a 2-1 hole.
If Towns can continue to evolve as a playmaker and showcase a skill that can help him extend his prime as he moves deeper into his 30s, paying him what he wants will be even easier to justify.
1. Prove defensive improvement wasn't a fluke
The single most important thing Towns can do is prove that his defensive improvement will last. He entered the 2025-26 season with an admittedly fair reputation as an erratic defensive player whose buy-in was at least questionable in terms of sustained effort as an interior anchor.
The days are seemingly gone of a team needing to trade a handful of draft picks to accommodate Towns' erratic defense, but how safe are the Knicks in that belief?
Towns was sensational on defense throughout the 2025-26 season—playoffs included. A decade of inconsistency is simply difficult to brush under the rug because of one year's effort. With Mitchell Robinson no longer around to help and Andre Drummond not necessarily known for his own defense, the pressure is on Towns to prove he can handle the workload.
If Towns can prove that it was by no means a fluke and sustain his excellence in 2026-27, it will be tough to argue against the Knicks paying him what he wants.
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