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NEW YORK, NEW YORK - NOVEMBER 14: Karl-Anthony Towns #32 of the New York Knicks warms up before the game against the Miami Heat at Madison Square Garden on November 14, 2025 in New York City.

Karl-Anthony Towns had a very uncertain future with the New York Knicks just a few months ago, as he was the top name mentioned in Giannis Antetokounmpo trade rumors, as his fit next to Jalen Brunson and the rest of the roster remained in question and unclear

However, after a strong end to the regular season and increased play through the first three rounds of the 2026 NBA Playoffs, which helped the Knicks reach the Finals for the first time since 1999, Towns’ future in New York looks more stable than ever before.

But still under his current contract, the Knicks and Towns will have extension talks this summer. While he does appear to be staying in the Big Apple after this season, regardless of what happens in the Finals, it remains to be seen if New York wants to pay him the potential $200+ million new deal he could be in line for over the offseason.

NBA Insider On Karl-Anthony Towns Knicks’ Contract Extension

Writing for ESPN, league insider Bobby Marks discussed the type of money Towns could earn from the Knicks after his hot playoff run.

Towns is in the second year of a four-year, $220 million deal he signed a few seasons ago when he was still with the Minnesota Timberwolves. The center has a player option for the 2027-28 season worth $62 million, but it remains to be seen what he’ll do with that, or if the Knicks have another plans for his contract.

“Karl-Anthony Towns has two years left on his contract, including a $62.8 million player option for 2026-27. He is eligible to extend for four years and $272 million (if the option is declined) or three years and $208 million (if the option is exercised),” Marks wrote.

With that, Towns can either wait until next offseason to sign a new deal with the Knicks for $272 million to make him one of the highest-paid centers in NBA history, or instead ink a $208 million extension after his player option, which would end up netting him about the same amount of money.

According to Marks, regardless of what Towns does with his player option, he believes the big man deserves a new max contract, but it just comes down to how the Knicks want to build their roster over the next few years, and if the center can keep up this type of play for an extended period.

“Towns is deserving of an extension, but can New York afford paying the 30-year-old an average of $68 million per season?” Marks asked. “The team would be paying a 34-year-old Towns $75 million in 2030-31, which seems untenable.”

Towns has been playing well, but having him on the payroll for more than a quarter of the salary cap could be dangerous. New York is already paying their top guys a ton of money, and it remains to be seen if they are fully ready to commit to a long-term future with him.

KAT’s Playoff Performances And Impact On Giannis Trade Rumors

Throughout the entire season, as the Knicks were heavily mentioned in Antetokounmpo trade rumors, it was Towns’ name on the chopping block. He hadn’t yet found a groove with Brunson, and issues with his defense were a prevailing problem that looked like it could cause the downfall of New York’s success.

However, through the playoffs so far, that hasn’t been the case, and while Towns has been playing some of the best basketball of his career, Knicks’ Antetokounmpo rumors have died down. If New York were to have lost in the first or second round, they very well could have traded their current center and likely other assets to make a deal with the Milwaukee Bucks for their superstar.

But now, even if the Knicks lose in the Finals, it’s hard to see them making drastic changes to this roster, at least for next season. Towns has put together some stellar performances, and finally looks like the player New York hoped he’d be when they traded for him just ahead of last season.

In 14 playoff games for the Knicks this year, Towns is averaging 16.9 points, 10.6 rebounds, 5.9 assists, 1.2 steals, and 1.4 blocks on 57.2/48.9/89.1 shooting splits. The scoring numbers are down, but the passing is up.

“The Knicks are 7-0 in the games Towns has at least six assists. No Knicks player since Mark Jackson has recorded three games of at least 10 assists in the playoffs,” Marks wrote on Towns’ assist numbers. “Towns’ assists per game are on pace to be the second most by a 7-footer in a single postseason in NBA history, according to ESPN Research.”

Towns’ assist numbers have played a major factor in the Knicks’ postseason success and their current 11-game winning streak. He had two triple-doubles, each with ten assists, in their series against the Atlanta Hawks, and his new role has helped New York unlock a new level of play.

It remains to be seen what the Knicks will do regarding a Towns contract extension, but if he can keep up his recent performances in the Finals, he’s in line for another pay day this offseason.