The New York Knicks and Karl-Anthony Towns appear unlikely to reach a contract extension before training camp, with a reported $45 million to $50 million starting salary emerging as a key factor in negotiations.

As the defending NBA champions prepare to open training camp ahead of the 2026-27 season, ESPN's Shams Charania reported Wednesday that extension talks between Towns and New York have stalled.

“Negotiations on the contract extensions between the Knicks and Karl-Anthony Towns have grown stagnated,” Charania said. “As it stands right now, a deal going into training camp is considered unlikely.”

Charania added that discussions have remained cordial despite the lack of progress.

SNY's Ian Begley provided additional context Wednesday, reporting that New York has made it clear it wants Towns to remain with the franchise long term. However, the financial framework discussed thus far may help explain the impasse.

“One data point: Knicks have talked to Towns’ side about deals that start in $45M-$50M range, per SNY sources.”

Towns' $61 million player option for the 2027-28 season adds another complication. ESPN's Brian Windhorst explained Wednesday on NBA Today that the option gives Towns significant leverage because Knicks owner James Dolan has publicly expressed his determination to keep New York out of the second apron.

“He’s got a $61 million option for next season. The Knicks have said we don’t want to be in the second apron. If he picks up that $61 million option, they’re going to be in the second apron.”

Windhorst: “What KAT does will determine if Knicks core can stay together…He's got a $61 million option for (not this season) next season. Knicks have said ‘we don't wanna be in 2nd apron.’ If he picks up that option they're gonna be in the 2nd apron. So what they are gonna… pic.twitter.com/4c5jflwfeM

— New York Basketball (@NBA_NewYork) September 23, 2026

Karl-Anthony Towns' $61 million player option complicates Knicks extension talks

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According to Windhorst, that makes convincing Towns to decline the option and accept a lower annual salary central to the negotiations.

“So what they are going to ultimately need him to do is not take that option and reduce that. And that is the basis for this conversation. That is the basis for all of it.”

The stakes are significant for a Knicks organization attempting to preserve the core that just delivered its first NBA championship since 1973. Towns remains a foundational piece alongside Jalen Brunson, OG Anunoby, Mikal Bridges and Josh Hart.

Windhorst nevertheless expressed confidence that the two sides can eventually find common ground, pointing to Towns' representation by CAA and the agency's extensive relationship with Knicks president Leon Rose and several members of the roster.

“With one caveat… if James Dolan messes this up,” Windhorst said. “So if James Dolan doesn’t mess this up, let Leon Rose and CAA do their business, I think Karl-Anthony Towns will figure it out.”

However, Towns could have another path if negotiations ultimately collapse. Windhorst said the star center could potentially pursue a maximum contract elsewhere if New York's financial restrictions force him to test the market.

“He wants to be in New York. He wants the team to stay together. But if Jim Dolan sets an ironclad spot and forces Karl to the market, he will have max offers.”

For now, an extension before training camp appears unlikely. But with Towns wanting to remain in New York and the Knicks hoping to preserve their championship core without entering the second apron, negotiations could continue well beyond the opening of camp.