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Knicks rumors: NY insider’s prediction on $272 million Karl-Anthony Towns contract extension will open eyes

New York Knicks center Karl-Anthony Towns holds the Larry O'Brien championship trophy during the championship celebration after game five of the 2026 NBA Finals against the San Antonio Spurs at Frost Bank Center.

Geoff Burke-Imagn Images

The New York Knicks have a critical decision to make regarding Karl-Anthony Towns. He is eligible for a four-year contract extension worth $272 million. Will they give it to him? Or will they try to get more creative with the talented center?

Towns was in a similar position during the previous summer, but nothing materialized. It could be viewed as a blessing in disguise, as it motivated Towns to prove to the Knicks that he should be an integral part of the team's vision. Of course, it led to New York winning the title and ending a 53-year drought.

The 30-year-old Towns was highly instrumental in the Knicks' historical run. A maximum deal would be an ideal reward. The Athletic's James Edwards III, however, was a little skeptical about it.

“One thing I’m certain of is that New York’s decision-makers will offer Towns an extension. What I’m not certain of, and don’t expect, is whether the cash-conscious Knicks will offer him a max contract,” wrote Edwards.

He also noted that KAT is set to earn $57 million this coming season. The six-time All-Star also has a player option worth $61 million the following year.

Towns has shown that he can be a selfless player. Leaving a large sum of money on the table, however, could be quite tough, especially for a player his age, as he has to maximize his financial window.

Towns has silenced a lot of naysayers with his vital role on the Knicks. Now, it is the front office that needs convincing that he deserves maximum respect.

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