Two years and $150 million is the kind of generational wealth that changes the trajectory of a family forever, but the New York Knicks looked at Karl-Anthony Towns and decided to keep the checkbook firmly shut. Let’s be honest, he doesn’t need the money anyway.
The organization has spent the last few years throwing money around to reinforce the roster and build a dynamic core, so this frugality speaks volumes about their confidence in Towns right now. They aren’t saying he isn’t part of the plan, but they are certainly saying they don’t want to overcommit beyond the next two seasons.
The New York Knicks Leverage Contract Security Over Loyalty
From a business standpoint, the Knicks are playing this perfectly by refusing to sign Towns to an extension on top of his current deal. Towns is currently in the second year of a massive four-year, $220.4 million contract that locks him down until the 2028–29 offseason. With a player option waiting for him the year prior at age 32 worth $61 million, the team essentially controls his prime years without needing to add more years to the ledger.
There is simply no incentive for the front office to bid against themselves when they already own the asset. The decision to hold off isn’t just about the current cap sheet; it is about maintaining flexibility for a future that might not include him.
Rumors are already swirling that the Knicks may want to try to trade Towns at some point, specifically if a superstar like Giannis Antetokounmpo becomes available at the trade deadline. In this league, you are either the franchise cornerstone or the trade chip used to get one, and the Knicks are keeping Towns in that dangerous middle ground.
Karl-Anthony Towns Must Fix Lazy Habits to Earn the Max
If you look at the production on the floor, it is easy to see why the front office hesitated to commit another $150 million. The 10-year veteran is off to a notably slow start this year, averaging 22.1 points and 11.7 rebounds. While those counting stats look pretty on a box score, the efficiency has been ugly, with Towns shooting .460 from the field and a pedestrian .330 from downtown.
The eye test is even more damning than the shooting splits. Towns has been a bit lazy on defense at times, a criticism that has followed him for his entire career and is seemingly not going away in New York. His rebounding can be inconsistent, especially on the offensive glass where the Knicks need him to be a monster to generate second chances.
The new offensive system the Knicks have deployed requires him to move a lot more, and it is clear that his stamina is being tested as he tries to adjust to the increased pace.
New York Knicks Future Financials Create Massive Stakes
The relationship between the player and the front office appears to be solid despite the contract snub, with Towns indicating he has a tremendous relationship with management. He went on record emphatically stating his desire to stay, noting that being home with family means more than the money. However, sentimentality doesn’t win championships or justify salary cap hell.
“Hell yeah. Hell yeah, I want to stay here,” Towns said before scoring 29 points in Tuesday’s loss to the Celtics. “Obviously get a chance to be home, see my family. It means more than the money, you know.”
He wants to be there, but the Knicks are waiting to see if he is worth the price of admission. According to Bobby Marks of ESPN, Towns will be eligible for another max deal worth four years and $260 million after the 2026 NBA finals. That is a staggering number. By refusing the extension now, the Knicks are effectively challenging him to prove he is worth a quarter of a billion dollars later, rather than handing him a golden parachute today.
The reality is, they probably won’t be extending him at all.