The New York Knicks are working three contract conversations at once—Karl-Anthony Towns, Josh Hart, and Miles McBride—with the second apron already visible in the rearview mirror and no procedural escape hatch. Front-office leadership knew this when they acquired Towns from Minnesota for $49.2M in outgoing salary in October. Now the bill arrives.
Towns is extension-eligible this summer under a designated veteran rule that allows a five-year, $314M maximum deal starting in 2025-26, when his current four-year, $220M contract expires. Hart signed a four-year, $81M extension in August 2023 but can renegotiate upward this summer if the Knicks create room, which they will not. McBride, on a three-year, $13M deal through 2025-26, becomes extension-eligible July 1 and has leverage after averaging 10.2 points and 41.7% from three in spot starts this season. The Knicks are projected $13M over the second apron in 2025-26 before any new agreements, per front-office sources.
The constraint is structural, not financial. Owner James Dolan has shown willingness to pay luxury tax in winning windows—the Knicks paid $23.8M in tax last season—but second-apron teams lose access to the taxpayer mid-level exception, cannot aggregate salaries in trades, and forfeit future draft picks if they stay above the line for multiple years. Towns' max extension would push the Knicks deep into repeater-tax territory by 2027, limiting roster flexibility to minimum contracts and draft picks. McBride's camp knows this. His agent has already fielded inquiries from teams with cap space, according to league sources, a signal the Knicks read clearly.
Hart's situation is simpler but politically delicate. He restructured his deal last summer to give the Knicks financial flexibility in the Towns trade, accepting a below-market extension to preserve the roster. Renegotiating upward now would require cap space the Knicks do not have, and waiting until 2027 free agency is not a conversation his side wants to entertain. Hart's usage rate has climbed to 17.3% this season from 13.1% last year, per tracking data, as head coach Tom Thibodeau leans on his defensive versatility. The Knicks need him. He knows it. The math does not care.
What to watch: Towns' extension window opens after the season, and the Knicks will have preliminary numbers by late May when the salary cap projection firms up. McBride's negotiation begins July 1, with comparables likely landing between four years, $48M and four years, $60M based on recent guards with similar profiles. Hart's camp will monitor both. Rival front offices are watching for any signal the Knicks prioritize one negotiation over another, which would open trade discussions for the odd man out. One Eastern Conference executive noted the Knicks have no first-round picks to trade until 2031 after the Mikal Bridges deal, narrowing their options if they need to reset.
The Knicks built this roster for a two-year window. The second year is now.
The takeaway
Knicks face simultaneous extensions for Towns, Hart, and McBride with second-apron math eliminating flexibility and no draft capital for roster resets.
Editorial & Disclosure Notice: This article was written with artificial intelligence from public sources and is published without individual human review. Artificial intelligence and other digital tools are also used for research, analysis, editing, formatting, and production. Errors, omissions, outdated information, or inaccuracies may occur. References to companies, brands, products, services, organizations, or individuals are for informational and editorial purposes and do not imply endorsement, sponsorship, affiliation, partnership, or approval unless expressly stated. All trademarks and other intellectual property remain the property of their respective owners. Opinions, analysis, estimates, and commentary are informational only and should not be construed as financial, investment, legal, tax, medical, procurement, or other professional advice. Information may be corrected, clarified, or updated after publication. Corrections or removal requests: jenny@pops4.com.
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