Towns' Extension Talks Hit Stalemate as Knicks Face Salary Cap Challenges

Karl-Anthony Towns' extension negotiations are becoming one of the most difficult financial calculations facing the Knicks' front office. According to The Athletic NBA Daily, when Sam Amick was asked on the program whether Towns was close to reaching an extension agreement with the Knicks, his answer was not optimistic.

"I admit that I don't have a particularly accurate read on this situation," Amick said. "So far, things are very delicate and could change at any time. I have to say both sides have done a good job controlling the media attention around it."

What has made the negotiations more complicated is Jalen Brunson's previous decision to take a pay cut. Amick said Brunson's choice to give up a significant amount of money created pressure on Towns and stars across the league, as they were expected to make similar sacrifices. Towns' maximum salary figure is simply so large that it could "destroy" the Knicks' salary ledger.

How large of a contract can Towns receive?

Under the current collective bargaining agreement, Towns is eligible to sign a four-year, $272 million extension. If he declines his player option for the 2027-28 season, his new contract salary would reach $68 million per year, rising to around $75 million in the 2030-31 season when he is 34 years old.

Under his current contract, Towns is scheduled to earn $57.1 million in the 2026-27 season, already making him one of the biggest salary burdens on the Knicks' roster.

Brunson signed a below-market extension in 2024, taking more than $100 million less than his true maximum-contract value. That sacrifice allowed the Knicks' front office to build roster depth around him and ultimately helped the team win its first championship in 53 years.

Brunson's precedent has become pressure on Towns

That decision has become an organizational principle for how the Knicks handle future star negotiations. According to Amick, there is an unspoken expectation that Towns will also be asked to make a similar sacrifice for a team he recently helped elevate into championship contention.

However, the two players are at different points in their careers. Brunson was about to enter his age-28 season when he signed his extension, while Towns will turn 31 in November. This means any maximum-length extension would take him into his age-36 season—even for a durable big man, that stage of a career typically comes with a noticeable decline.

Now there is only one question left: Is Towns willing to become the next Brunson?