Karl-Anthony Towns Faces Troubling Knicks Contract Update Despite $200M Extension Offer

Karl-Anthony Towns, the New York Knicks' star, is facing a challenging contract situation despite being offered a $200 million extension. The 32-year-old forward recently won the NBA championship with the team and is now eligible for a new four-year, $276 million deal with the Knicks. However, the franchise is refusing to go beyond the second year of the contract and wants Towns to accept a significant pay cut, reducing his salary by $76 million. Towns has not agreed to the proposal, causing negotiations to stall.

The Knicks are also in talks with forward Josh Hart and guard Miles McBride, who are both eligible for new extensions. Hart could sign a four-year, $131 million to $132 million deal, while McBride could receive a roughly $60 million contract over four years. However, ClutchPoints' Brett Siegel suggests that it is unlikely that all three players will receive new extensions from the Knicks before the 2026-27 season begins.

The situation echoes a similar scenario with Jalen Brunson, who accepted a $76 million pay cut in 2024 and signed a four-year, $156.5 million contract extension. Brunson could have waited until the 2025 offseason to sign a five-year, $269.1 million deal instead.

Team owner James Dolan has expressed his reluctance to go over the second apron, leading him to ask Towns to take a substantial salary reduction. However, Knicks superfan Stephen A. Smith criticized Dolan for his decision, stating that the franchise should not disrespect the MVP by asking him to accept such a pay cut. Smith emphasized that Towns is worth his max extension and the Knicks should make a more reasonable offer.