Knicks Reportedly Make Karl-Anthony Towns Trade Decision Amid Contract Dispute

Two weeks before the Knicks raised their first championship banner in 53 years, Karl-Anthony Towns had a message for anyone questioning his contract demands. “I just won a championship,” he told reporters. “You’d think it was pretty easy.” A month later, the Knicks are facing a question nobody in New York wanted to ask: what if the star of the title run is not part of the future?

The answer, according to Heavy.com’s Sean Deveney, is that a trade is possible. “The Knicks would be crazy to trade Towns at this point, but then, the Knicks are crazy not to have found common ground on an extension before the season started,” Deveney wrote. “So, we can’t rule out a deal if it looks like Towns will seriously weigh leaving in the summer of 2027.”

Deveney outlined the stakes plainly. Towns has two years and $118 million left on his deal, including a player option. Deveney added that Towns “will have suitors if nothing changes between now and June 30.”

The dispute dates back to training camp. On Oct. 9, the Knicks announced they were putting extension talks with Towns and Josh Hart on hold "until later in the season," according to Yahoo Sports.

Towns is eligible for a maximum extension of $276 million over four years. The Knicks have reportedly offered four years and $200 million, which is more than $75 million below that figure.

The former No. 1 pick made his frustration clear before the preseason opener. “Simply put, I want to do something that can keep the team together and work with the Knicks and also values me,” he said, adding that none of that was close to happening.

Why James Dolan’s Second-Apron Line Could Force the Knicks’ Hand on Towns

The reason behind the stalemate appears to be money rather than performance. Days after the Knicks beat the Spurs in five games, owner James Dolan said on WFAN that he would not approve a plan that pushed the team over the second apron, calling it something you would have to be "suicidal" to do.

New York has just under $226.7 million committed for 2027-28, about $9.3 million below the projected second-apron line. That leaves very little room for a new Towns deal. It also explains the September and October reports that the Knicks might look to move Towns or Hart to save money, which NBA insider Shams Charania described as a “growing cloud” over the team.

For now, the Knicks sit at .500 after a blowout win over the Bulls, and the focus is still on defending the title. But Deveney's report is a sign of how the league sees it. If Towns signals that he is leaning toward leaving in 2027, the Knicks would have to decide whether to lose him for nothing or trade him while his value is high.

Other teams are watching, and the Celtics have already been floated as a possible suitor, though nobody has reported that they have contacted New York.

The Knicks do not appear to want to trade Towns, and Deveney says doing so would be crazy. But if they cannot agree on a contract, it may stop being their choice.