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Karl-Anthony Towns #32 of the New York Knicks

The New York Knicks secured the team’s first championship in 53 years last weekend with a five-game win over the Spurs, and in doing so, set to rest the considerably criticism they’ve gotten over various moves in their recent history–from the trade for Mikal Bridges to the Karl-Anthony Towns deal to the firing of coach Tom Thibodeau. Now their big challenge is a simple one: Do it all over again, in a league that has not had a repeat champion since 2018.

The Knicks are in position to do so, or at least to bring back much the same roster as they put out this year. But this portion of the season will be as taxing on the accountants as crunch time in the Finals was on the Spurs.

No fan really wants to hear about the woes a multi-billion-dollar team has balancing its books, but the Knicks faithful should get used to two dreaded words in NBA salary-cap parlance: second apron.

Knicks Finances Facing a Crunch

The Knicks will have to be a second-apron team in 2026-27, if the goal is to bring back the same roster to defend the title. We saw much the same thing with the Celtics in 2024-25, when they were in the second apron, and last year’s champions, the Thunder, are beginning to feel some financial pinch this offseason, even if they’re not yet an apron team.

But the Knicks are about $12-13 million below the second apron–and just about at the first apron, before even re-signing any of their own free agents, starting with center Mitchell Robinson. The Knicks intend to bring him back, and it is likely to cost them about $20 million per year to do so. That move alone will skyrocket them past the second apron.

“It’s almost impossible to win a championship and not be at the (second) apron in a year or two after you win it,” one NBA executive said. “So, they’ll go right past it. Even if they can’t keep Robinson, if they just want to keep guys like (Landry) Shamet and Jose Alvarado, they will go over. The way the rules are, they’re better off going over. But for them, it will be way over, and it is going to be a major hit on the books.”

Roster Will Mostly Be Back

Depending on how things play out, the Knicks could be looking at almost $150 million in tax payments for next year, putting their total payroll at nearly $400 million. Now, they could let Landry Shamet, Jordan Clarkson and Jose Alvarado walk, but in the wake of the euphoria that came with their championship parade this week, they’re intent on bringing everyone back.

Even if they let those guys go, they will still be a second-apron team, with limits on their ability to sign players and to make trades. Because their ability to make equitable trades will be limited, the Knicks would be wise to keep the players they can, finances be damned.

That will change going forward. The Knicks will see Bridges’ contract extension kick in next year, and extensions will be needed next summer for Towns and Jalen Brunson. They can’t live in the second apron forever.

But the Knicks are likely to bring back most of their free agents. That will be a major hit, indeed.