The New York Knicks risk losing their championship roster due to Karl-Anthony Towns’ looming contract extension. While eligible for a massive $272 million deal, Towns may need to accept a pay cut – similar to Jalen Brunson and Victor Wembanyama – to help the franchise navigate salary cap restrictions and sustain success.
After their historic championship run, the New York Knicks have retained most of their squad. Most notably they lost Mitchell Robinson in free agency, who anchored their paint in a terrific playoff campaign.
However, a report by Jared Schwartz of the New York Post reveals potential risk for the Knicks in maintaining their winning team, because of their cap space.
Karl-Anthony Towns, who played a major role for New York in the playoffs, averaging 15.9 points, 10.6 rebounds, 4.9 assists and 1.3 blocks while shooting 45.6% from three, is eligible for a significant extension, which would exceed the Knicks' salary cap.
Towns' contract situation
Towns will make around $57 million next year with a player option for the 2027-28 season worth $61 million dollars.
The Knicks can offer him a four-year extension for $272 million right now. If he was to decline his player option next year, his max contract would be slightly smaller at around $266 million, but if he entered free agency in 2028, that number would rise.
The experienced big man proved himself as one of the most elite players in the league with his playoff performance. KAT stepped up his defense, which was a focal point of conversation on why he didn't have much playoff success previously.
Head coach Mike Brown also utilized his playmaking much more in the playoffs, which increased his efficiency.
Karl-Anthony Towns, Victor Wembanyama
Karl-Anthony Towns, Victor Wembanyama
Credit AP - Scanpix
Could Towns make the Brunson and Wemby move?
Towns' teammate Jalen Brunson famously took a $113 million pay cut in 2024 to help New York build a championship contender. The move paid off as they got to lift the Larry O'Brien trophy this year.
Their opponent in the 2026 NBA Finals, Victor Wembanyama sacrificed around $50 million on his contract extension this summer to help the San Antonio Spurs retain their young stars in the future.
Schwartz suggests that there is a chance that Towns could take the Brunson route in order to keep the championship team together:
"Unless Towns believes it’s his turn to sacrifice, as Brunson did, he and the Knicks could reach an agreement on an extension below the max amount."
Time will tell whether the 2026 NBA champions continue to dominate the Eastern Conference for a few more years or will the NBA's financial rules crush Knicks fans hopes to replicate their success.
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