With the start of the 2026-27 NBA season just two weeks away, the big story swirling around Madison Square Garden isn't whether the Knicks will repeat as champions, but whether they will be able to re-sign Karl-Anthony Towns and Josh Hart to extensions. Both players, it should be pointed out, are currently under contract this season. To hear some people put it, the sky is falling.
At the risk of throwing cold water on the hypochondriacs out there, some of whom should know better, this is much ado about nothing. Don't get me wrong: it's essential that Leon Rose re-sign at least one, if not both players, and I have no doubt that Towns was not thrilled with the initial offer he received. I have to admit: $180 million over four years is pretty low. But as someone who spent a quarter century in sales, you never start out a negotiation with your best offer. Typically, both sides have their preferred number and eventually will meet somewhere in the middle. Remember, we don't know what Towns is looking for; all we know is that after this season, he has a $61 million player option. He can either opt in or opt out. It's his choice.
Here's what we know so far:
The Knicks have no intention of going over the second apron, and at the risk of repeating myself, it has nothing to do with the money. To sum up what I wrote back in June, there are profound consequences for teams that go over the second apron; consequences that Rose wants no part of. So if you still think that this is about James Dolan being stingy, don't. The fact is if Dolan went into Rose's office tomorrow and gave him permission to go $20 million over the second apron, Rose would still refuse. The man built a championship roster, for God's sake. He has forgotten more than most GMs will ever know about contract negotiations. Why on Earth would he paint himself into a corner?
KAT is eligible for a four-year max extension of $276 million, which comes out to $69 million per season. Hart is eligible for a four-year max extension of $132 million, which comes out to $33 million per season. The chances of either of them getting that max deal from the Knicks is nil.
As I mentioned above, both players are under contract this season. KAT has a player option for 2027-28; the Knicks hold a team option on Hart for the same season. So you can forget about either one of them getting traded during the season. Barring something extraordinary, the Knicks will defend their title with the same starting lineup and bench, sans Mitchell Robinson, that they had last season.
But this is where things get tricky. It isn't whether Towns and Hart re-sign, but when and for how much. In the case of Towns, Fred Katz wrote an excellent piece in The Athletic about this which is required reading. To sum up, the best-case scenario for the Knicks would be for a deal to get done by October 19, the day before the start of the season. That would allow Towns to opt in to his $61 million player option while simultaneously allowing the Knicks to structure the remaining three years at a lower AAV.
Why is that important? Because the real problem for the Knicks isn't the next two seasons, it's what comes next. You see that's when Jalen Brunson will be eligible for an extension. In a nutshell, he's looking at a max contract of somewhere between $290 to $323 million, or $72.5 to $80.75 million per season. If you think he's leaving money on the table like he did the last time, you're on crack. If ever there was a player who's earned the right to get paid what he's worth, it's Captain Clutch. The issue isn't whether he'll get paid, but whether Rose will have enough money left over to construct a roster around him.
And that's why these next couple of weeks are so important. What happens with the Towns extension, and to a lesser extent Hart's, will determine whether the core Rose assembled over the last two years can stay together or whether it'll have to be broken up. In short, if Towns sticks to his guns and demands the Knicks pay him his max deal, Rose will have no choice but to trade one of his starting players; if he's willing to follow in Brunson's footsteps and "leave some money on the table," than the core stays intact.
Towns has indicated he's amenable to taking less than the max, which is good. The question is how much less? Let's assume that the initial offer from Rose of $180 million was just a bargaining ploy. If both sides can meet halfway, that comes out to $228 million, or $57 million per year. That's about what he's making this season, and roughly $4 million less than his player option next season. And if the deal gets done before October 20, and Towns opts into his player option - absolutely essential - Rose can incorporate that player option into the overall contract, thus lower the remaining three years, perhaps enough to avoid having to shed salary in another two years.
If Towns elects not to sign an extension and opts out of his player option next summer, believing he can get a better deal elsewhere, there is currently only one team that would be able to accommodate his demands without having to get rid of a player: the Brooklyn Nets. The Chicago Bulls and Los Angeles Clippers will have $56m and $54m respectively, meaning they would still need to shed salary in order to sign him. All three teams are not considered contenders. Translation: KAT doesn't have the leverage he thinks he does. He can pout all he wants, but if he wants to play for a contender, the Knicks are his best and only choice.
As for Hart, I'm less worried about him. The Knicks can always pick up his team option of $22.3 million next season and kick the can down the road until 2028. They'd be taking a chance that Hart doesn't bolt, but given how tight he and Brunson are, it's a chance worth taking. Besides, with that finger the way it is, there's no guarantee that Hart will be playing basketball in another three years. Signing him to a multiyear extension would not be a wise business decision. And if we know anything about Leon Rose, it's that he makes excellent business decisions.
How concerned should Knicks fans be? On a scale of 1 to 10, I'd say about a 4. The closer we get to October 20, the more that number climbs. But even if we get to the 20th and no deal is done, that doesn't mean a deal can't happen later; it just makes it harder for the numbers to work.
My point is this: the Knicks won the NBA championship last season. The man responsible for assembling that roster has earned the benefit of the doubt. Don't panic; avoid the naysayers who feel the need to stir the pot. They don't know as much as they say they do.
To quote the late, great Bob Marley, "Don't worry about a thing. Cos every little thing gonna be alright."
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