Knicks Face Major Karl-Anthony Towns Contract Problem as $276M Extension Hits Snag

Karl-Anthony Towns is coming off a strong 2025-26 NBA season, helping the New York Knicks win the championship. Following that, Towns is open to accepting a pay cut to stay in New York and help the franchise contend for another title. However, he has struggled to agree to a deal with the front office.

Towns will enter the third year of his four-year, $224 million contract extension he signed when he was with the Minnesota Timberwolves . KAT is eligible to sign a four-year, $276 million extension with the Knicks. However, reports say New York wants him to accept a four-year, $200 million deal.

So far, talks about his contract negotiations have stalled. ESPN's Malike Andrews spoke about Towns' situation on Tuesday's "NBA Today."

" Karl-Anthony Towns , from what I have been told, is willing, similarly to what Jalen Brunson did. The numbers aren't the same, but he is also willing to take a pay cut," Andrews said .

"However, the pay cut the Knicks are asking him to take, he views as unreasonable."

Karl-Anthony Towns had an uneasy Media Day on Monday. He reiterated his desire to stay in New York and wants to get the contract negotiations done.

"I mean, I've made it known," Towns said . "You know, I wanna play here. Been a fan since I was young, and so I would like to get one done, of course. That's obvious, you know? I would like to get it done so I can step on the court and feel [as] comfortable as possible."

Even his teammate, Josh Hart , has not reached an agreement for a contract extension with the Knicks. Hart is eligible to sign a $132 million contract extension.

Karl-Anthony Towns Lost Weight During the Offseason

Karl-Anthony Towns was welcomed on Media Day with a new physical look. Towns was slimmer compared to the previous year, which was something the media asked him about. According to the one-time champion, he always loses weight over the summer.

"I thought my wife thought I looked good. So I thought I was looking alright," he said. "Just, in the offseason I always lose a lot of weight."

KAT said he allows his body to recover and rest, especially after the intense playoff run the Knicks had last season. Towns played heavy minutes during New York's postseason run and had to physically battle against some of the best big men in the NBA, including San Antonio Spurs star Victor Wembanyama .