The New York Knicks’ decision to table extension talks with Karl-Anthony Towns (and others) doesn’t mean they can’t change their mind, and negotiate an in-season deal with him later. It does, however, prevent him from picking up his player option as part of any agreement.
Only expiring contracts are allowed to be extended once the season begins. For the purpose of this rule, any option years left on a contract count towards its final length. If the Knicks and Towns do not come to terms on an extension by opening night, he would be required to decline his $61 million player option for 2027-28 to get a deal done during the season.
Between New York announcing it would defer extension talks and KAT’s own comments on negotiations, it sure doesn’t seem like anything will be hashed out within the preseason window. And while that isn’t necessarily a deal-breaker, it does remove a potentially valuable tool from the team’s belt.
Karl-Anthony Towns picking up his player option could help the Knicks plan around Jalen Brunson
On the surface, New York shouldn’t want Towns to pick up his player option. The goal is to lower that number, and make sidestepping the second apron more doable next season.
Still, having Towns opt into $61 million comes with its advantages. Mainly, by paying him more in 2027-28, it would allow the Knicks to have his deal decline in value over time, beginning with the 2028-29 season.
It just so happens that this would be the first year of Jalen Brunson’s presumed deal. Starting next summer, he’ll be eligible to sign a four-year, $286.5 million max extension that kicks in for the 2028-29 campaign. Unless the captain does the team yet another massive favor, his salary will increase by more than $23 million after 2027-28.
Having KAT on the books for an even lower number at that point could go a long way. Assuming the Knicks’ opposition to entering the second apron remains in place, every dollar they save helps them to keep more of their depth intact.
Granted, this would come with more short-term pain. New York is inside $10 million of the second apron next season with Towns’ $61 million player option. And that’s with commitments to just 10 players, including Josh Hart’s team option.
Deuce McBride would almost assuredly be gone if KAT stays at $61 million. But the truth is, so long as the Knicks’ second-apron aversion remains in place, he’s a goner anyway.
Incurring more restrictions next season could make it easier to float the starting five into 2028-29 and beyond. Remember, Brunson isn’t the only core player up for an extension next summer. OG Anunoby will be, too. The Knicks will be hard-pressed to keep both him and KAT around while maxing out JB.
The Knicks clearly aren’t concerned about losing this option
Paying Towns more next season then having his salary decline doesn’t guarantee any of this changes. But it’s an option that could open up more flexibility as the team’s expenses reach their apex.
Or rather, it was an option.
The Knicks can’t explore this roadmap if it’s genuinely done negotiating with Towns. Sure, they could have him opt into his contract after this season, and then extend him off that number then. But they’d be hammering out the framework under the looming threat of unrestricted free agency. Towns will have a firmer grasp of his market by next June, which could give him additional leverage.
New York doesn’t appear bothered by any of this. Based on its reported offers to Towns, it’s angling for him to take an immediate pay cut. Even so, as long as the dialogue between both sides stays open, every scenario is in play.
The Knicks’ decision to close negotiations, though, would mean this particular possibility is not.
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