Knicks put Karl-Anthony Towns trade on the table as $276 million extension talks stall

The New York Knicks have reportedly considered a potential trade for Karl-Anthony Towns as ongoing discussions over a substantial contract extension have hit a deadlock. Towns, a 30-year-old forward, is eligible to sign a four-year deal worth around $276 million, but financial constraints stemming from an alleged mandate from owner James Dolan to steer clear of the second luxury tax bracket have caused the talks to stall.

The contract extension would begin in 2027, after Towns has two years remaining on his current agreement. Sean Deveney of Heavy on Sports reported that the Knicks have indicated they would entertain a trade if Towns concludes his future lies elsewhere. Deveney noted that while the Knicks should not trade Towns, they have not made notable progress in reaching an agreement.

The financial disparity between the two parties remains considerable, with Towns having previously rejected a four-year offer worth about $200 million, which was roughly $77 million less than the maximum extension available and a pay cut from his current $57 million salary. The Knicks might also need to account for the contracts of Josh Hart and Jalen Brunson, who have extension options at different points.

An insider told SNY’s Ian Begley that New York would likely need to provide Towns with more than what Detroit Pistons’ Duren secured in a four-year, $200 million deal. With the possibility of Towns entering free agency in 2027, the Knicks must decide whether to meet his financial demands or consider a trade before the situation becomes more intricate.