NBA Rumors: Will the Knicks renew Karl-Anthony Towns?

NBA Rumors: Karl-Anthony Towns had a very strong rookie season with the New York Knicks. The Dominican-American center averaged 24.4 points per game and finished second in the NBA with 12.8 rebounds per game, numbers that earned him a spot on the All-NBA Third Team. His impact was immediate following a major trade last October, becoming a cornerstone of the New York team. However, this does not guarantee his short-term future. 

With those numbers, Towns would have earned the right to pursue a contract extension in most scenarios. But the situation is not so straightforward. According to Stefan Bondy of the New York Post, the chances of a new short-term deal are slim. The reason is purely financial: the power forward has the option to sign a two-year extension worth $150 million, equaling an annual salary of $75 million. While such a figure aligns with the market for superstars, it raises concerns for a franchise that must closely monitor its luxury tax impact.

Currently, Karl-Anthony Towns' contract is valid for at least two more seasons. He will earn $53 million next season, rise to $57 million in 2026-27, and still have a player option for 2027-28 valued at $61 million. This agreement matches the supermax deal he signed in 2022 with the Minnesota Timberwolves, which came into effect upon his move to New York.

The deadline to finalize the potential extension is on October 20, yet there are no signs of ongoing negotiations. Bondy emphasizes that the silence is understandable, given the risk of triggering the so-called "second apron" of the luxury tax, a financial restriction that severely limits teams exceeding certain salary thresholds. The most recent example was the Boston Celtics, the 2024 champions, who had to part ways with Kristaps Porzingis and Jrue Holiday this summer to avoid even harsher penalties.

Karl-Anthony Towns' Continuity in Doubt

Thus, Towns' situation leans more toward continuing under the existing terms. It is most likely that the Dominican will fulfill the next two seasons with the Knicks and may even consider exercising his player option in 2027-28. The organization appreciates his production, but committing to a new $150 million deal in just two years seems, for now, a risk they are unwilling to take.

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