Knicks' desired pay cut for Karl-Anthony Towns has been revealed

The New York Knicks are hoping that Karl-Anthony Towns is willing to leave around $75 million on the table.

New York would be “far more” interested in giving Towns a new contract of four years and $200 million, Bleacher Report’s Jake Fischer reported on Tuesday. That is notably much less than Towns’ full max figure of four years and $276 million.

Towns, who turns 31 in November, is currently in a contract standoff with the Knicks. We learned earlier this week that New York has been asking Towns to take a pay cut and that Towns was now seen as unlikely to agree to a new extension before the season as a result.

The former No. 1 overall pick Towns has been a stellar player for the Knicks ever since arriving in a 2024 trade with the Minnesota Timberwolves. Towns has been an All-Star and a 20-ppg scorer in each of his first two seasons with New York and also played a major role in the Knicks’ 2026 NBA championship victory.

But even at a figure of $50 million per year, Towns would still be taking a discount, relative to both his max number and his current contract. For reference, Towns is currently signed for $57.1 million next season and also has a $61 million player option for 2027-28.

The Knicks are trying to avoid the second apron of the luxury tax at all costs and also have to position themselves for No. 1 option Jalen Brunson’s expected mammoth extension next summer. As a result, Towns is being asked to take a haircut, which may only be adding to his reported frustrations with the team.