Knicks could be forced to lowball Karl-Anthony Towns after pausing extension talks

The New York Knicks are in an interesting situation as they try to navigate their roster and keep it together. There is no doubt that the team's finances are going to make that a little more difficult.

However, the biggest storyline out of New York has been Karl-Anthony Towns. If the Knicks wanted to secure the most cost-effective extension for him, they would have had to get it done before October 19.

"Failing to extend KAT before the start of the season would wipe the most intuitive contract structure off the table. KAT receiving the money he wants…and the Knicks maintaining the payroll flexibility they insist upon becomes even tougher after Oct. 19," The Athletic's Fred Katz wrote.

The Knicks want to get their players locked up, but they also want to do so on their own timeline. For that reason, they have decided to pause all contract extension negotiations.

"As an organization, our entire focus is on preparing for the upcoming season and delivering another year for our fans to be proud of. As a result, we will not be negotiating contract extensions until later in the season and will remain solely focused on preparing for the start of the season," a Knicks spokesperson told ESPN.

However, with that announcement, Towns would have to decline his player option for next season if he agrees to an extension during the season.

"Important addendum from KeithSmithNBA: Karl-Anthony Towns would have to decline his player option for 2027-28 to sign an in-season contract extension and the Knicks would have to decline their team options for next season on Josh Hart and Tyler Kolek to extend them in-season," The Stein Line's Marc Stein wrote.

This is an interesting twist, as Towns could potentially be getting lowballed if an extension comes together. One report indicated that the Knicks have offered him around $200 million.

That figure is significant in the overall negotiations. Towns' player option for next season is worth $61 million , meaning he would need to consider how an extension could affect his earnings. If he wants to match the value of the reported $200 million offer while accounting for that player option, the length and structure of the deal would be important factors.

It will be worth watching how the situation unfolds as the Knicks and Towns navigate their contract discussions later in the season.