ESPN reports Karl-Anthony Towns' extension talks with the Knicks have stalled. James Dolan's second-apron line is the big factor

Contract extension talks between the New York Knicks and Karl-Anthony Towns have stalled, ESPN's Shams Charania and Vincent Goodwill reported on Wednesday, and a deal is considered unlikely before training camp opens next week. According to ESPN, the two sides spent much of the summer discussing an extension, but there has been no movement lately.

Charania said on NBA Today that the talks had been cordial, and called Towns' unresolved contract "a cloud going into training camp." Towns, who turns 31 on November 15, is eligible for an extension worth up to four years and $276 million, according to ESPN's Bobby Marks. That works out to about $69 million a year.

What the Knicks have discussed

Two New York reporters added detail on Wednesday. SNY's Ian Begley reported that the Knicks have talked to Towns' side about deals starting in the $45 million to $50 million range. A league source told Begley the talks had been positive and that the team wants Towns in New York for a long time.

Stefan Bondy of the New York Post reported that the Knicks are asking Towns to take a discount from his maximum. The reasons Bondy gave: they are close to the second apron, and Jalen Brunson is eligible for a big extension next year. Bondy read Charania's report as a sign that Towns is not yet willing to accept what New York is offering. He also quoted a league source who said the conversations had been cordial and positive, and that no deal now does not mean no deal later. None of the three reports has either side walking away.

Why the Knicks want a discount

The limit comes from the owner. James Dolan said on WFAN in June, days after the title, "We cannot go into the second apron." ESPN has tied Mitchell Robinson's departure for Boston this summer to that stance. The Knicks sit roughly $3.2 million below the second apron this season, which is why five veterans are competing for one roster spot.

Charania said on NBA Today that this Knicks team is not a second-apron team, but that the same group returning next season would be, so some change is unavoidable. That is where Towns' contract comes in. He earns about $57.1 million this season and holds a player option worth about $61 million for 2027-28, according to Spotrac, with a decision due by June 29, 2027. The bottom of Begley's range is $16 million less than that option figure, and the top is $11 million less.

Nothing has to be decided this week.

The Knicks do have all season to extend Karl-Anthony Towns.

Shams Charania, on ESPN's NBA Today

Charania said the sides could revisit talks later in the season. Without an extension, Towns can pick up the option next summer or decline it and become an unrestricted free agent.

The Brunson precedent

The Knicks have asked a star to take less before. In July 2024, Brunson agreed to a four-year, $156.5 million extension, $113 million less guaranteed than he could have signed a year later, his agent Sam Rose told ESPN at the time. ESPN reported then that the deal kept the Knicks out of the second apron. Brunson was named Finals MVP in June, when New York beat San Antonio in five games for its first title since 1973.

Towns was central to that run. He averaged 15.9 points, 10.6 rebounds and 4.9 assists on 55.1% shooting across 19 playoff games as the Knicks went 16-3. ESPN notes he has been an All-Star in both of his seasons in New York.

What comes next

Media day is Monday, September 28, the first scheduled chance for reporters to ask Towns about the talks. Training camp opens the next day, and the Knicks raise their championship banner against Philadelphia on October 20.