Karl-Anthony Towns Drops Bombshell on Knicks Future as Contract Extension Stalls

Karl-Anthony Towns says he sees his long-term future at Madison Square Garden, but negotiations on a new deal remain at a standstill as the New York Knicks weigh luxury-tax realities and roster flexibility. The All-Star center confirmed this week that extension talks have “completely stalled,” yet emphasized, “I would love it to work out here; this is where I want to win”. Why the holdup? New York’s front office faces a mid-December deadline to decide whether to use its remaining $18 million in cap space on in-season upgrades or roll it over for a potential Towns max extension projected at four years, $238 million. League insiders say president Leon Rose is reluctant to lock in another nine-figure contract before gauging the trade market for a reliable perimeter defender to pair with Jalen Brunson. On the floor, Towns has made a strong case to be paid. In the Knicks’ 107-95 victory against Toronto, he poured in 22 points on 8-of-14 shooting and added nine rebounds, powering New York to its fourth straight win and a 12-8 start that currently places the club fourth in the East. He is averaging 24.6 points, 9.1 boards and a career-high 5.2 assists while posting a 63.4 true-shooting percentage, numbers that bolster his argument for a full max. Teammates are publicly lobbying for the front office to strike a deal. “Karl changes everything for us—spacing, rim protection, leadership,” Brunson said after practice Tuesday. “We all want him here long term.” Head coach Tom Thibodeau praised Towns’ improved defense, noting that New York is holding opponents to 108.3 points per 100 possessions when he anchors the middle, compared with 114.7 when he sits. Yet the Knicks’ books are tight. Brunson’s own extension kicks in next July, and forward RJ Barrett becomes an unrestricted free agent in 2026. A Towns max could push payroll $15-20 million over the second luxury-tax apron, restricting key team-building tools such as the taxpayer mid-level exception and future first-round pick swaps. Sources close to the negotiations say New York is exploring incentives and partial guarantees to lower the annual cap hit, but Towns’ representatives are holding firm on standard super-max parameters. The league’s new Collective Bargaining Agreement adds urgency: if Towns reaches unrestricted free agency in July, New York would lose his Bird rights and the ability to exceed the cap to re-sign him. That makes an in-season agreement—either an extension or a sign-and-trade—the most logical path. For now, Towns insists the contract drama won’t derail the Knicks’ playoff push. “I’m going to control what I can control—winning games,” he said. “The rest will figure itself out when the time is right.” Knicks fans will hope the clock doesn’t strike midnight on their franchise center before pen meets paper.