Contract extension negotiations between the New York Knicks and Karl-Anthony Towns have stalled, with an agreement before training camp now considered unlikely, according to ESPN's Shams Charania.
"Sources tell me that negotiations on a contract extension between the Knicks and Karl-Anthony Towns have stagnated," Charania reported on NBA Today. "As it stands right now, a deal going into training camp is considered unlikely."
"All offseason, both sides have been discussing a deal extensively," Charania added. "Talks have been described to me as cordial. There just has not been movement on a deal, especially as of late, to get something done."
Towns averaged 20.1 points, 11.9 rebounds and 3.0 assists in 75 games last season, earning his sixth All-Star selection while helping New York win the NBA championship.
"There's no doubt, based on the people I've talked to, that this is a cloud going into training camp as the Knicks try to repeat as champions," Charania said. "Karl-Anthony Towns would be going into the final guaranteed year of his deal."
Towns could become free agent next summer
"He has a $61 million player option for next offseason, which means he has a chance to become a free agent amid eight or so teams with cap space next offseason, with multiple of those teams potentially needing a big man," Charania explained.
New York does not necessarily need to reach an agreement before the 2026-27 season starts.
"The Knicks do have all season to extend Karl-Anthony Towns," Charania said. "They could revisit conversations at a later date."
"We see right there the maximum extension he is eligible for: four years and a little over $270 million," Charania said.
Second apron complicates Knicks' plans
One of the biggest factors in negotiations is New York's desire to stay below the NBA's second apron.
"But the big factor throughout all of this is that owner James Dolan has made it clear publicly that the team does not want to go into the second apron," Charania noted. "The team will not go into the second apron moving forward."
"This current team right now is not a second-apron team, so they're out of that," Charania continued. "But next season, if this same team comes back, they would be a second-apron team."
That means at least some changes to the championship roster may eventually be required.
"Change is inevitable to some extent," Charania said. "We've already seen Mitchell Robinson depart via free agency, and now a key All-NBA, All-Star-caliber player in Karl-Anthony Towns has no extension yet."
"Josh Hart, another vital player on that historic championship team, has no extension yet either," Charania added. "He is also eligible."