The New York Knicks have finally reached the mountaintop by winning the 2026 NBA championship. But one of their biggest offseason decisions is still yet to be made. Karl-Anthony Towns is eligible for a four-year, $272 million maximum contract extension. But a new report suggests the Knicks might not be willing to offer the full amount.
According to The Athletic’s James L. Edwards III, the Knicks are expected to make Towns an extension offer sometime soon, but it won’t likely be the maximum one. It is a pretty fascinating situation, given how Towns has done everything the franchise has asked for.
After arriving in New York, he immediately transformed the Knicks into a legitimate championship contender. The franchise reached the Eastern Conference Finals in his first season before capturing the NBA title the following year.
Towns has proved to be a perfect offensive complement next to Jalen Brunson and gives the Knicks an elite scoring big man who is capable of stretching the floor and dominating inside. Last season, Towns averaged 20.1 points, 11.0 rebounds, and 3.0 assists while shooting 50.1% from the field, and he was again named an All-Star.
Just talking about production, it is quite easy to understand why he deserves every dollar of that max extension.
But the financial reality of the New York Knicks is far more complicated. Towns will earn over $57 million this season before holding a $61 million player option for the 2027-28 campaign. He is now eligible for a four-year, $272 million max extension, but committing to that kind of a deal would seriously hamper the Knicks’ financial flexibility for the future.
The Knicks already have long-term money committed to Jalen Brunson, OG Anunoby, Mikal Bridges, and Josh Hart. Brunson took $113 million less than the maximum on his extension, which gave the organization room to build a championship roster around him. Even Mikal Bridges took a slight pay cut when he signed his extension.
Brian Windhorst stated earlier in the offseason that the Knicks can keep this championship window going if Towns and Josh Hart can take a slight cut on their extension offers.
But Brunson’s sacrifice has been one of the biggest talking points in the NBA, with Victor Wembanyama reportedly leaving $51 million on the table in his recent extension. But whether Towns is ready to follow Brunson’s example is probably the biggest question facing the franchise.
From the Knicks’ perspective, avoiding the second apron at any cost seems to be the priority. The organization has shown that it’s ready to accept some losses to keep its financial flexibility secure, as it allowed Mitchell Robinson to leave in free agency.
And handing Towns a full maximum extension could make it impossible for them to keep their current core without exceeding the second apron limits.
Age also seems to be another factor. Towns will turn 31 years old shortly after next season begins. And he is still one of the league’s most unique centers. But big men don’t generally age well, especially after having knee procedures in the past.
The concern is not whether Towns will perform over the next season or two. It is whether he’s still able to justify a contract worth nearly $70 million on the back end of this extension.
But there are still some reasons for the Knicks to reward him with an extension. Players around the league notice how organizations treat stars who help deliver championships.
Offering Towns the maximum would send a message that winning in New York gets rewarded, which could attract potential future talent that may be able to replace Towns if this extension doesn’t work out.
But ultimately, this negotiation comes down to balancing loyalty with long-term roster building. The Knicks clearly want Towns to stay with them and be a cornerstone of their championship core. And Edwards expects their extension offer to arrive sometime soon. Even Towns was disappointed that the Knicks hadn’t offered him an extension, but he was hoping that they could reach a resolution this summer.
The only question that remains is whether the Knicks think their long-term security is more important than maximizing every available dollar.
A compromise might be the best outcome here. If Towns agrees to a slightly below-market deal, below the four-year, $272 million maximum, the Knicks can keep their financial flexibility while keeping one of the league’s most talented big men for years to come.
If not, this could be one of the more interesting contract negotiations that could stretch well into the season.
