Regardless of whether you believe James Dolan when he says the New York Knicks won’t cross the second apron, the team clearly has its complex financial realities front-of-mind. They might still throw caution to the wind next season anyway, but they more than ever must hope Karl-Anthony Towns is willing to take a pay cut in his next deal.
And while they’re at it, they better hope he’s willing to do so this offseason.
Towns is eligible to sign a four-year extension worth over $270 million. That number presumes he would decline his 2027-28 player option.Â
Paying through the teeth to retain KAT seemed unlikely, if ludicrous, just a few months ago. He has since proved himself to be an indispensable part of a championship core at both ends of the floor, and as the league’s foremost foil (at the moment) to Victor Wembanyama.
Still, this isn’t a license for the Knicks to max him out, into his mid-30s, without even thinking. If they are scared of navigating the second apron now, it will not get any less frightening as other players like Jalen Brunson, Deuce McBride, Josh Hart, and Mitchell Robinson, among others, get more expensive in the coming years.
New York’s best hope at keeping this core together beyond next season lies with KAT as a result. More specifically, it hinges largely, potentially entirely, on his 2027-28 player option.
The main goal of any Karl-Anthony Towns extensionÂ
Aside from just ensuring he sticks in orange and blue, the Knicks extending KAT is mostly about getting him to decline his $61 million player option for 2027-28, and re-signing for less per year in exchange for more guaranteed money.
Granted, he is under no obligation to do New York any favors. Demanding the max would be his right. At the same time, there’s no assurances that similar money is available to him elsewhere.
More teams could have cap space next summer, but the list of squads projected to be within range of $60-plus million isn’t particularly deep. Among those who will
have that money to burn, they may not want to spend 35 percent of their salary cap on a contract for a big man that runs through his age-35 season.
The Era of Aprons arms the Knicks with plenty of leverage. Aging stars are much less likely to get their full freights on the open market. Towns is not old in the traditional sense, but he’d be approaching his 32nd birthday when entering free agency. There is value to him locking in another nine figures’ worth of salary for his career.
Say the Knicks offer Towns a four-year extension worth $50 million per year for a grand total of $200 million. That lowers his 2027-28 cap number by more than $10 million, but still nets him an extra $140 million over the next three years. Conventional wisdom suggests he at least has to think about it.
This is a make-or-break inflection point for the Knicks
Getting KAT to accept less than his max in an extension won’t preclude the Knicks from having to make tough decisions. He would need to take a larger pay cut than Jalen Brunson for that to be the case.
This is more about the Knicks trying to keep their starters together for as long as possible.Â
Brunson, Josh Hart, and OG Anunoby will all require new deals before the Knicks know it. JB has already taken less money, and can’t be expected to do so again. Hart doesn’t make nearly enough to leave a dent by taking less unless he’s playing for peanuts. The market for Anunoby’s services (2028-29 player option) will probably be too frothy again to hope he takes much less.
With Mikal Bridges already under contract for the next four years, this leaves Towns’ extension as the inflection point. Every dollar the Knicks save by extending him now, rather than waiting until next summer, makes a difference. Heck, if he’s on the books for $50 million in 2027-28 instead of $61 million, that $11 million difference could cover the cost of keeping McBride or Shamet (before taxes).
Time will tell what New York and KAT figure out. The Knicks’ brilliant cap navigation the past few years has earned them the benefit of the doubt. But between a fast-rising payroll and Dolan’s recent comments, that brilliance is no longer a luxury. As it pertains to Towns’ future, it is now essential to not only keep him, but this championship core at large.
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