Karl-Anthony Towns is eligible to sign a two-year, $150 million extension with the New York Knicks that he apparently won’t be getting. Not only that, but there’s a chance he doesn’t put pen to paper on another deal before his contract ends, setting him up to hit unrestricted free agency in either 2027 (player option) or 2028.
“Towns still has two guaranteed years left on his contract,” writes Stefan Bondy of the New York Post, “and there’s a decent chance he’ll play out the third on a $61 million player option.”
Passing on the full-boat extension is the correct call by New York. Towns is coming off an All-NBA season, but he remains among the league’s most divisive stars, due largely to his defensive limitations, which might require the Knicks to start playing him more alongside another center. This union between player and team is still in its information-gathering process.
Operating under the guise that Towns will hit free agency is nevertheless risky.
Letting Karl-Anthony Towns hit free agency could cost the Knicks
Allowing Towns to hit the open market could come back to bite the Knicks in one of two ways: Either he leaves for nothing, in which case they will have no feasible way of replacing him, or retaining him winds up costing more money than he’d get in an extension.
If Towns enters 2027 free agency, another team could offer him up to four years and $266.5 million. If he reaches the open market in 2028, a rival suitor could pony up four years and $285.1 million. The Knicks can match or exceed both of those offers. That doesn’t mean they should want to beat them.
This hypothetical might feel like a non-issue. Teams may not be banging down the door to pay KAT 35 percent of the salary cap two or three years from now. But it takes just one suitor to set the market.
Towns will also still be in the heart of his prime, entering free agency at age 31 or 32. His offensive skill set is not just unique for someone his size. It will also age well. So while a true-max offer might seem unlikely, it’s not a remote possibility, either.
The Knicks shouldn’t rule out a Karl-Anthony Towns extension
Shelling out an additional two years and $150 million for Towns should absolutely be a no-go move for the Knicks. That doesn’t mean they shouldn’t extend him. It doesn’t have to happen this year, or even necessarily next summer. They will have multiple opportunities to broker a new agreement.
The trick is hammering out a deal that lowers his long-term cap hit. If he’s willing to decline his 2027-28 player option and accept a smaller annual salary in exchange for more total guaranteed money over the life of an extension, it actually benefits the Knicks. Lowering his 2027-28 cap number, specifically, could potentially help them skirt under the second apron after entering it in 2026-27.
Of course, this may be an approach best explored next offseason, when New York can tack on more total years and, thus, money to any extension agreement. That’s sort of the point. There are numerous ways Towns’ future can play out. The team should not be resigned to any one scenario.
For all we know, Towns could even be traded before free agency comes around. Whatever happens, though, the Knicks would be wise to ensure he doesn’t actually hit the open market. It might just come back to haunt them.