NEW YORK — Karl-Anthony Towns is willing to take a pay cut to remain with the New York Knicks, but the reduction the team is seeking is viewed as unreasonable by the four-time All-Star as extension negotiations have stagnated. Towns is entering the second season of his three-year, $220.4 million contract, which includes a $61 million player option for the 2027-28 season that would allow him to enter free agency next summer if he declines it.
Malika Andrews reported Towns is open to following a similar path to Jalen Brunson, who accepted less than his maximum earning potential to help New York maintain its roster. “From what I have been told is willing, similarly to what Jalen Brunson did,” Andrews said. “Numbers aren’t the same, but he is also willing to take a pay cut. But the pay cut that the Knicks are asking him to take, he views as unreasonable.” Shams Charania reported on September 23 that the two sides had discussed a new deal extensively throughout the offseason, but an agreement before training camp was considered unlikely.
The Knicks face significant financial pressure as they attempt to keep their championship core together. Owner James Dolan has said the organization does not want to cross the NBA’s second tax apron, while New York would project to be above that threshold next season if it simply retains its current commitments. Towns was a major part of the Knicks’ championship season in 2025-26, averaging 20.1 points, 11.9 rebounds and 3.0 assists in 75 regular-season games while shooting 50.1% from the field, 36.8% from three-point range and 85.8% from the free-throw line.
The big man was also productive in his first season in New York after arriving from Minnesota in the 2024 offseason, averaging 24.4 points and 12.8 rebounds in 72 games in 2024-25 and earning All-NBA Third Team honors. New York went 53-29 last season before winning 16 of 19 playoff games to capture its first NBA championship since 1973. Towns enters the new season alongside Jalen Brunson, OG Anunoby, Mikal Bridges and Josh Hart as the Knicks attempt to defend their title, with Hart also eligible for an extension as maintaining the group becomes increasingly complicated under the league’s financial rules.