Karl-Anthony Towns facing contract dispute with Knicks

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Karl-Anthony Towns facing contract dispute with Knicks

Originally posted on Larry Brown Sports | By Grey Papke | Last updated Sep 23, 2026 3:41 PM ET

New York Knicks star Karl-Anthony Towns may be headed for an awkward season with the team.

Towns is eligible for a max extension, but negotiations between the two sides have “stagnated,” according to Shams Charania on ESPN’s “NBA Today.” It is considered “unlikely” that the two sides will reach an agreement before the start of training camp.

According to Charania, the situation could impact the team’s morale with Towns heading into the final guaranteed season of his contract.

“There’s no doubt this is a cloud going into training camp as the Knicks try to repeat as champions,” Charania said. “Karl-Anthony Towns would be going into the final guaranteed year of his deal. He has a chance to be a free agent amid eight or so teams with cap space next offseason and multiple of those teams potentially needing a big man.”

Stefan Bondy of the New York Post reported that the Knicks have actually asked Towns to take a discount from the max as they try to avoid going into the second apron of the salary cap.

As myself and others reported, Knicks are asking KAT to take a discount from his max. They're close to second apron and Brunson is eligible for 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… https://t.co/Xh2UwNUdmu
— Stefan Bondy (@SbondyNBA) September 23, 2026

The Knicks have been open about their refusal to go into the second apron, and Towns is one of those who will feel the impact of that decision. The team has reportedly drawn a line in the sand during negotiations with Towns facing a $61 million player option for 2027-28.

The flipside of the situation is that Towns feels taken for granted by the Knicks. It is very easy to see why these issues could linger into the season and have a detrimental impact on the team.

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