The New York Knicks have reportedly placed Karl-Anthony Towns on the trade market as contract extension negotiations between the star and the franchise remain at a standstill. The 30-year-old center, who was a key contributor to the team’s 2026 championship run, is eligible for a four-year extension worth up to $276 million.
Reports indicate that the Knicks have “put that option on the table for him” as the organization navigates complex financial restrictions. Team owner James Dolan has maintained a firm stance against exceeding the NBA’s second luxury tax apron, which has complicated the team’s ability to meet the salary demands of their core players.
While the franchise initially viewed a potential trade as a last resort, the lack of progress in talks has shifted the internal calculus. The team faces a deadline of June 30, 2027, to reach an agreement before Towns could potentially become an unrestricted free agent. If no extension is finalized, the organization may look to trade him to avoid losing the asset without receiving compensation in return.
Negotiations have been difficult, with reports suggesting a significant gap between the Knicks’ offer of approximately $200 million and the maximum deal Towns is eligible to receive. Although Towns has expressed a desire to remain with the team, he has also noted that his value needs to be properly reflected in any potential deal.
For now, the team continues its season while monitoring the situation. Analysts suggest that while trading a key piece of a championship roster carries risks, the financial constraints imposed by the second apron leave the front office with few alternatives if common ground cannot be found.