The New York Knicks are heading into the new season as NBA champions, but potential contract disagreements could lead to bigger problems at the trade deadline. Karl-Anthony Towns and Josh Hart were pivotal members of the Knicks' championship squad last season, but they still haven't inked extensions that would keep them with the team long-term.

Shams: "This is a growing cloud around Knicks. KAT's…willing to take a considerable discount…just like teammates…But rn Knicks want him to take what he believes is extreme discount…Sources tell me…4 yrs $200m…$76m less than his max…Knicks have not moved off this…Josh Hart…

— New York Basketball (@NBA_NewYork) October 5, 2026

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On Monday's edition of NBA Today, Shams Charania reported on the holdup in both players' contract extension talks.

“There's a growing cloud around the New York Knicks. Karl-Anthony Towns has made it clear to the Knicks that he is willing to take a considerable discount on his contract extension coming up, just like his teammates have: Mikal Bridges, OG Anunoby, as well as Jalen Brunson. Right now, the Knicks want him to take a substantial pay cut, what he believes to be an extreme discount on his deal. Sources tell me the Knicks are offering Towns a 4-year, approximately $200 million contract extension. That's $76 million less than his max. That's under the backdrop of James Dolan, their owner, making it clear that this team will not be in the second apron moving forward.”

Charania added, “Karl Anthony Towns, though, has shown a willingness to negotiate a deal that would satisfy this team staying under the second apron. The Knicks have not moved off this threshold of about $200 million over the 4 years, and he has 1 year guaranteed left on his contract before the player option next summer that would make him a free agent. Josh Hart has already hinted that, as this gets closer to February, which is around the trade deadline, the temperature could rise if Karl-Anthony Towns and Hart himself are not extended. So far, these sides are not close.”