Karl-Anthony Towns Unwilling to Take Discount As Jalen Brunson's Contract Extension Nears, Per Reports

The New York Knicks are coming into the 2026-27 season with a huge target on their back. New York successfully won the 2026 NBA championship against the San Antonio Spurs. While it was a team effort overall, core guys like the NBA Finals MVP Jalen Brunson and Karl-Anthony Towns carried a huge load.

Given the success they both brought to the Knicks, their values as players have increased significantly, and Brunson and Towns are now eligible for max extensions. However, it appears the Knicks want Towns to take a discount on his max offer to make way for Brunson's max.

"Negotiations on the contract extension between the Knicks and Karl-Anthony Towns have stagnated, and as it stands right now, a deal going into training camp is considered unlikely," NBA insider Shams Charania said on NBA Today.

"All offseason, both sides have been discussing a deal extensively," Charania continued. "There has just not been movement on a deal, especially as of late, to get something done."

According to Charania, Towns is eligible for a four-year, $272 million deal. However, the Knicks are trying to avoid the second apron as much as possible next season.

Because of the current circumstances, another league insider, Stefan Bondy, went on X to give his thoughts on the situation. The fact that there hasn't been a deal made yet at this point in the offseason indicates that Towns is unwilling to budge on his max extension option.

"As myself and others reported, the Knicks are asking KAT to take a discount from his max," Bondy wrote. "They're close to the second apron, and Brunson is eligible for a big extension next year. It's a matter of how much of a discount KAT would be willing to take. Given Shams report, it's clear he's unwilling to take what the Knicks are offering."

For now, everything remains to be seen. The good news is that New York still has until the end of the 2026-27 season to secure a deal with Towns. However, if KAT doesn't end up signing any new contract within that time period, it's more than likely that he could end up becoming a free agent in the summer of 2027.

NBA Insider Predicts Karl-Anthony Towns Could End Up on Another Team in 2027

Now that Karl-Anthony Towns and the New York Knicks have failed to reach an agreement on a contract extension, at least for now, there are concerns that the star big man could end up on another team come the 2027-28 season.

NBA insider Brian Windhorst believes that there's a possibility that KAT might play for another team, especially after learning about his interviews with other teams this summer.

"There's been nothing really said out there a lot," Windhorst said. "Karl has given a couple of interviews this offseason. He has not said anything about it. This will obviously come up at media day in a week and a half here. He can be a free agent after this season."

As to why the Knicks aren't acting with urgency when it comes to Towns' contract situation, Windhorst also noted that they don't believe their star big man would easily jump the bus after this coming season.

"Maybe the Knicks don't believe that he'll be a free agent," Windhorst continued. "Maybe the Knicks don't feel the pressure because they don't think he'll opt out of that. But he can be a free agent, and let's be honest, if Karl-Anthony Towns were an unrestricted free agent, he would have offers like that."

Towns is currently in the third year of his contract. He still has a player option for the 2027-28 season, but that's if he decides to opt into it.