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The New York Knicks and Karl-Anthony Towns are at a pivotal moment regarding his future. Towns has the option to opt out of his contract after the 2026-27 season, which could lead to a significant trade consideration worth $120 million.
Knicks, Karl-Anthony Towns have a $120 million reason to consider a trade originally appeared on The Sporting News. Add The Sporting News as a Preferred Source by clicking here.
The New York Knicks and Karl-Anthony Towns will face a crossroads soon.
First, they'd like to keep this playoff run going for a while.
But whenever the postseason ends, Towns' contract will come into focus. It's not over yet, but Towns can opt out and become a free agent after the 2026-27 season, according to ESPN's Brian Windhorst and Tim Bontemps.
Towns has two years and $120 million remaining on his contract after this season, although that includes the season he could opt-out before reaching. Still, that's already a quality payday, and Towns might want more.
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That sets this offseason up as a time to consider a contract extension. But if the playoffs fizzle out, it could also make this the time to think about a trade.
An acquiring team would want to get Towns in time to line up their own extension with him.
"They're probably in a spot with KAT that they should either extend him or look to trade him," an East executive told the on Tuesday. "If this playoff run convinces everyone this is a good fit, maybe they can get him to take a little discount off his max like did and help them keep the core together."
Karl-Anthony Towns can opt out of his contract and become a free agent after the 2026-27 season.
Karl-Anthony Towns has a trade consideration valued at $120 million.
If Towns opts out, it could significantly impact the Knicks' roster decisions and playoff strategy.
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The Knicks do have a lot of money on the books already.
"New York already has nearly $170 million in combined salary headed to Brunson, OG Anunoby, Mikal Bridges and Josh Hart for the 2027-28 season,' Bontemps and Windhorst wrote. "Signing Towns on a max contract this summer would almost certainly push the Knicks into second apron territory."
Is Towns worth the leap into the second apron? That decision may be easier to make once the Knicks see how their postseason run works out this year.