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Knicks Pursuing Below‑Max Extensions for Towns and Hart to Protect Payroll Flexibility

Owner James Dolan’s determination to stay under the NBA’s second luxury‑tax apron is driving New York to offer shorter, team‑friendly deals that trade some player pay for roster options.

Overview

  • Recent reporting outlines a concrete framework for Karl‑Anthony Towns of a three‑year, $135 million extension that would follow his reported $61 million player option for 2027–28.
  • League sources and analysts expect Josh Hart to accept a below‑maximum deal in the roughly three‑year, $54 million to $62 million range while negotiations are still ongoing.
  • No formal agreements have been announced and both sides are still negotiating the balance between guaranteed money for players and the Knicks’ desire to avoid the second apron.
  • The second luxury‑tax apron restricts trades and signings and already shaped roster moves this offseason, including Mitchell Robinson’s move to Boston.
  • If Towns and Hart take discounted extensions the Knicks would preserve payroll room for other core moves such as a future Jalen Brunson extension while risking less long‑term financial strain on the title roster.