The New York Knicks are ready to begin their championship defense, but a tough contract negotiation with star Karl-Anthony Towns threatens their future. Towns is eligible for a four-year $276 million contract extension but seems unlikely to get anything near that amount.
In fact, according to James L. Edwards III of The Athletic, the Knicks have offered a four-year $200 million contract extension. Towns recently responded publicly to the offer, saying, "It doesn't look good," referring to contract talks with the Knicks.
It's hard to blame him for turning down such an offer. It would be one thing to ask him to take a pay cut, but a $76 million pay cut is a bit much.
In fact, the difference would be about $19 million per season on average, and that probably isn't going to be enough to bring Towns back.
The Knicks and Karl-Anthony Towns are far apart in contract talks
While Towns not signing an extension may not affect the Knicks' repeat hopes this season, it could still factor into their future. Towns can become an unrestricted free agent after this season, adding to potential drama surrounding the Knicks.
If New York doesn't get the feeling that he will re-sign, then they may be forced to consider their trade options. After all, even bringing him back for $50 million a year might not even be feasible.
Remember, the Knicks are also paying OG Anunoby and Mikal Bridges each at least $33 million over the next three seasons and still have to extend Josh Hart as well.
Simply put, they can't afford to pay Brunson, Towns, and the three aforementioned players. As a result, they will have to decide between Towns and depth. I know which one I would choose.
The Knicks are smart to play hardball with Towns
The Knicks are smart not to simply rubber-stamp a max contract extension for Towns. In doing so, they would tie up most of their cap space to Jalen Brunson and Towns.
New York simply can't justify that, and by lowballing Towns, they are at least trying to preserve some financial flexibility. It may alienate Towns, but it may also send a clear message that he shouldn't expect to get anything near the $276 million max.
That doesn't mean that he'd accept the $200 million offer. Instead, he may accept more than that but less than the max. Perhaps something in the $225 million range, but even then the risk would be on the Knicks.
In that scenario, they may have to choose between Bridges and Anunoby and possibly have to decide on whether to keep Hart and McBride long-term. Or, they could play out this season and assess if they're willing to pay Towns or open to sign-and-trade options. Either way, the Knicks won't be paying Towns the max.
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