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Knicks Pause Karl‑Anthony Towns Extension Talks

James Dolan’s directive to avoid the NBA second luxury‑tax apron prompted the team to stop negotiations until after the season.

Overview

  • The Knicks have halted extension talks with Karl‑Anthony Towns and told him negotiations will resume after the season, a move Towns said he first learned about from media and called “very disappointed.”
  • New York’s reported offer was about $200 million over four years versus Towns’ near‑max eligibility of roughly $276 million, creating a roughly $76 million gap that has stalled progress.
  • Ownership’s payroll limit — the second luxury‑tax apron — is the core constraint, meaning Towns would likely need to accept a discount for the Knicks to sign him now.
  • Towns retains a roughly $61 million player option for 2027‑28, which gives him leverage to opt out and test the market and keeps an extension window open through June 30, 2027.
  • Media analysts say the Warriors, Clippers and Hawks are among likely suitors if Towns reaches free agency, and the Knicks could clear about $40 million in cap space to retool around Jalen Brunson if he departs.