Karl-Anthony Towns, Knicks face contract squeeze under second apron rules

Karl-Anthony Towns and the New York Knicks are locked in a contract standoff as the 2026-27 season approaches, a dispute that has again put owner James Dolan in the spotlight but is being driven largely by the NBA’s harsh second-apron rules.

Towns’ extension window collides with hard cap pressures

Towns is eligible to sign a four-year extension worth up to $276 million (US). Multiple reports cited by CBS Sports indicate that New York’s current offer sits closer to $200 million. The big man, entering the final guaranteed year of his contract, said this week that the odds of a deal being done before opening night “don’t look good,” though both sides continue to talk.

At the same time, the Knicks are trying to honour Dolan’s public pledge not to cross the second apron, set at $221 million this season. New York is projected to have roughly $93 million in room below that line going forward. If the team picks up Josh Hart’s $22.3 million team option and Towns exercises his $61 million player option for 2027-28, that would leave only about $10 million of second-apron space to round out the roster and address Miles McBride’s next contract when his rookie deal expires.

Future deals for Brunson, Anunoby and Bridges tighten the window

The cap squeeze intensifies in 2028, when Jalen Brunson — who already accepted a discount on his current pact — and OG Anunoby will both be in line for new contracts. Mikal Bridges will follow a year later. If Towns gets his full number now, the Knicks will eventually have to shortchange or move at least one other key piece to avoid the most punitive penalties tied to the second apron.

CBS Sports suggests Hart could ultimately be the odd man out, in part because of his age and limited shooting, with McBride even more vulnerable. New York’s decision to bring Ochai Agbaji, Bruce Brown and John Konchar into camp, along with bigs James Wiseman and Drew Eubanks, fits a pattern: use camp battles to find low-cost rotation help, as they did with Landry Shamet last season, and prepare for the possibility of moving McBride before he gets expensive.

Dolan’s image vs. the realities of the second-apron era

Dolan has long been viewed as one of the league’s most controversial owners, with high-profile missteps and off-court disputes feeding his reputation. But the column notes that he has rarely shied away from spending and that, since Leon Rose took over as team president in 2020, basketball operations have run more coherently with ownership largely staying out of personnel decisions.

The second apron is already reshaping contenders around the league. Last season, the Cleveland Cavaliers were the only team to operate above it. The Boston Celtics made moves, including trading Jaylen Brown, to better position themselves against future apron concerns. The Oklahoma City Thunder, after winning the 2025 title, moved rotation players such as Lu Dort, Aaron Wiggins and Isaiah Joe to prepare for looming paydays for Ajay Mitchell and Cason Wallace.

For New York, Towns is viewed as essential after his role in unlocking the offence during the championship run, and CBS Sports frames an eventual agreement as likely, albeit at a discount compared to his full ceiling. Every dollar added to Towns’ deal, however, tightens the cap picture for Hart, McBride and others. In that context, the Knicks’ reluctance to immediately hand over the full $276 million reads less as Dolan pinching pennies and more as a hard choice imposed by the second-apron system, where even champions can’t simply max out every star.