Karl-Anthony Towns & Josh Hart's Future in Jeopardy as Knicks Face Tough Decision

Karl-Anthony Towns is new to contract stalemates. In July 2022, the Minnesota Timberwolves handed him a four-year, $224 million supermax extension, a deal signed immediately without public friction even as questions lingered about his fit next to Anthony Edwards.

That partnership eventually ended when Towns was traded to the New York Knicks. A move that reshaped his career and culminated in him helping anchor New York's 2026 NBA Championship run. Now, two years after that trade, Towns finds himself in his first true contract standoff.

The Knicks are coming off their first title in 53 years, with Towns and Josh Hart central to that run. Neither has signed an extension, and ESPN's Shams Charania reported Monday that both could become trade candidates if talks don't move before the February deadline.

"Josh Hart has already hinted that as this gets closer to February, which is around the trade deadline, the temperature could rise if Karl-Anthony Towns and Hart himself are not extended," Charania said. "So far, these sides are not close."

The gap comes down to money. Towns is eligible for a four-year deal worth more than $276 million, but Charania reported the Knicks have offered four years and roughly $200 million, about $76 million below his max.

Towns addressed the stalemate directly after Monday's shootaround in Philadelphia. "It don't look good," he said. "Simply put, I want to do something that can keep the team together and work with the Knicks and also values me. None of those things have come close to happening."

Asked whether he could separate basketball from business, Towns said, "In my experience, you just approach the moments right now and let it go where it goes." When a follow-up suggested a deal should be easy given the team's recent success, Towns didn't hold back: "No s—t, Sherlock."

Hart's situation is tied directly to Towns'. He's eligible for a four-year, $131.2 million extension, but the Knicks can't finalize his number until they know what Towns is making, since owner James Dolan has been firm about staying under the second tax apron.

Hart signed a four-year, $156.5 million extension two years ago, the most New York could offer him at the time. He is now looking to recoup value after helping deliver the title. The Knicks also hold a $22.4 million team option on Hart for 2027-28, giving them a way to delay his decision another year if needed.

Towns, for his part, has said he's willing to take a "considerable discount." The same kind of team-friendly deal running through extensions for Mikal Bridges, OG Anunoby and Jalen Brunson. But the Knicks' current offer asks him to go further than that, closer to what Charania described as an "extreme discount."

Hart's own deal is now effectively on hold. The Knicks are heading into a title defense with two important pieces who have every incentive to want clarity, and a front office that has shown no urgency to provide it before the trade deadline, raising the stakes.