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The New York Knicks have made clear that they want Karl-Anthony Towns to remain in New York. They have also made clear that keeping him will require a contract far below his maximum.
The Knicks have discussed extension frameworks with Towns’ representatives that would begin between $45 million and $50 million annually, SNY’s Ian Begley reported Wednesday, providing the clearest indication yet of the financial divide behind their contract stalemate.
There has been “plenty of conversation” between the sides, according to Begley. A league source familiar with the negotiations characterized the talks to Begley as positive and said the Knicks think highly of Towns.
New York’s message is that it wants Towns “to be a Knick for a long time,” Begley reported.
The unsettled question is how much the reigning champion is willing to sacrifice to make that happen.
Knicks Discussed $45 Million to $50 Million Starting Salary
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Karl-Anthony Towns of the New York Knicks holds the Larry O’Brien Championship Trophy during a championship celebration and Key to the City ceremony at City Hall Plaza after a ticker-tape parade honoring the team’s NBA Finals victory in New York City on June 18, 2026.
Towns is eligible for a four-year maximum extension projected to be worth roughly $272 million to $276 million. He will make approximately $57.1 million this season and holds a $61 million player option for 2027-28.
A new contract beginning between $45 million and $50 million would represent an immediate reduction from both figures.
The full value would depend on the contract’s structure and annual raises. If a four-year agreement carried standard 8% raises, a $45 million starting salary would produce approximately $202 million in total compensation. Beginning at $50 million would place the total near $224 million.
Those are estimates rather than confirmed offers, but they illustrate the distance between the Knicks’ preferred framework and Towns’ maximum eligibility. Even the upper end could leave approximately $50 million on the table.
That helps explain why ESPN’s Shams Charania reported Wednesday that negotiations had stagnated and an agreement before training camp was considered unlikely.
NYK Still View Towns as Long-Term Cornerstone
Begley’s report adds important context to the impasse. The Knicks’ reluctance to offer the maximum should not be confused with reluctance to retain Towns.
The organization views him as a central part of its future after he helped deliver New York’s first NBA championship in 53 years. The disagreement is financial, not personal.
The Knicks are operating close to the second apron, which owner James Dolan has said the franchise does not intend to cross. Their long-term payroll already includes lucrative contracts for OG Anunoby and Mikal Bridges, while Josh Hart is eligible for an extension.
Jalen Brunson represents the largest future expense. The Finals MVP could become eligible for a four-year, $323 million extension in 2028 after previously sacrificing $113 million to help New York preserve flexibility.
The Knicks appear to be asking Towns to make the next concession.
Towns has leverage of his own. He can play this season without signing an extension, exercise his $61 million option or decline it and enter a 2027 free-agent market expected to feature several teams with cap space.
The positive dialogue leaves room for a compromise during the season. But Begley’s reported range shows why cordial conversations have not produced an agreement.
New York wants Towns for the long haul. It wants him at its price.
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Alder Almo is a veteran NBA reporter for Heavy.com, covering the New York Knicks, Los Angeles Lakers and Golden State Warriors. He brings over 20 years of experience across local and international media, including broadcast, print and digital. He previously covered the Knicks for Empire Sports Media and the NBA for Off the Glass. Originally from the Philippines, he is now based in Jersey City, New Jersey. More about Alder Almo
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