Knicks insider provides the reasons why a Karl-Anthony Towns extension is likely

Winning the 2026 championship was a monumental achievement for the New York Knicks. It was also a good argument for teams to have stars take pay cuts, like what Jalen Brunson did to help facilitate all the important contracts the team needed to offer to players.

OG Anunoby and Karl-Anthony Towns benefited from this because they got good money from the Knicks. Since Towns is eligible for an extension soon, there are rumors of him taking a pay cut to help the team continue to build a stronger and more well-balanced roster than most teams in the league.

A Karl-Anthony Towns extension on a smaller deal could happen for the Knicks

Towns still has two years left on his deal with the Knicks, but the second year is a player option. That means Towns could sign an extension with New York in the upcoming 2026-27 season, which could be much more appealing for him since he would love a more long-term contract.

It would be interesting to see the numbers behind his next contract because the logical move for the team to stay together is taking a bit of a pay cut. Since Brunson proved that it could be effective, it is appealing to more teams to do.

MORE: Jalen Brunson speaks about the pros and cons of the second apron for the Knicks

Of course, players would love to earn good money because that is the nature of a job like being an NBA player. However, the Knicks might have a good enough team that could make a lower offer more appealing. Considering the Knicks also play in New York, the personal branding could lead to more opportunities outside of just playing for the Knicks.

"If I had to take a guess, the two sides will reach an agreement. Towns clearly loves New York. Maybe he can make more money with another team next summer. But why would he leave? He won a timeless championship with his hometown team," SNY's Ian Begley said about a potential Towns extension.

"Given all of the factors at play (the state of NBA economics, teams’ approach to the second apron, the Knicks’ title), there are reasons for Towns to play it safe and sign an extension."

It is an interesting perspective from Begley because the Knicks could have Towns for the long-term future. However, if he seeks a bigger contract, there is a chance they could lose him to another team. It would be a big blow to the Knicks, so they should strike the right balance if they want to keep this core together.

More NBA news:

• Iman Shumpert continues to believe that the Knicks are the team to beat in the Eastern Conference
• Draymond Green attributes Victor Wembanyama's pay cut to what Jalen Brunson did for the Knicks
• Josh Hart comes to Jalen Brunson's defense against Draymond Green
• Jalen Brunson and the Knicks are still shining in the rankings despite the 76ers' improvements
• Karl-Anthony Towns reveals why he believes Victor Wembanyama could not guard him