As the Knicks prepare to defend their first NBA title in 53 years, owner James Dolan has signaled a clear desire to steer clear of the league’s second apron. Karl-Anthony Towns—who can earn $57 million in 2026-27 and has a $62 million player option for 2027-28
When the 2026-27 season tips off, the New York Knicks will try to do what no team in the franchise’s history has done in 53 years: defend an NBA title.
The core is largely in place for the immediate future. But the path gets narrow fast. A handful of key role players face major free agency decisions. and the team’s willingness to keep everyone together is being tested by a new. unforgiving line in the Collective Bargaining Agreement. In a recent interview. owner James Dolan said he wants to avoid going over the second apron—an obstacle that could decide how aggressive the Knicks can be with their salary structure.
Karl-Anthony Towns holds the centerpiece to that dilemma.
Towns’ contract isn’t just about money—it’s leverage
Towns is scheduled to make $57 million in 2026-27. In 2027-28, he has a player option worth roughly $62 million. He can also opt out of that player option and re-sign with New York this summer.
The case for Towns taking less starts with what he’s become for the Knicks. He has flipped the narrative around himself, earning credit not only for his scoring, but for his defensive work and rebounding. There has also been recent recognition that he’s a strong teammate.
Yet what could swing the Knicks’ future is his own openness to the kind of financial adjustment that gets teams under the league’s hard caps. In a recent interview with Club Shay Shay, Towns suggested he could accept a similar pay cut to the one taken by Jalen Brunson.
If Towns opts out of his player option, he would be eligible to sign a four-year deal worth $272 million. If he instead accepts a $100 million pay cut, that figure drops to a four-year, $172 million contract—roughly $43 million per year. For 2027-28, the savings could be even more pronounced because of how NBA contract raises typically work.
The Knicks need help because the second apron is already within reach
The Knicks’ salary math is tight enough without assumptions. The second apron for 2026-27 sits at $222.372 million. To avoid the penalties that come with exceeding it, New York has to stay below that number.
The punishment for crossing the second apron is specific and harsh. The Knicks would be unable to aggregate multiple contracts in trades and unable to send cash out in transactions. They would also lose all mid-level exceptions, and they would face draft-pick penalties.
That’s why Towns’ potential pay cut matters so much: it’s not just a negotiation—it’s a chance to keep the Knicks’ front office working with fewer restrictions.
Still, the arithmetic has plenty of friction.
One projected path—and how small additions change everything
If Jose Alvarado opts in to his $4.5 million player option, New York is on the hook for $205.457 million. The Knicks could save about $3 million by moving Pacome Dadiet, bringing obligations down to roughly $202 million.
But Mohamed Diawara’s projected first-year salary of $3.2 million would erase that savings. On top of that, New York would still need to account for new contracts for Mitchell Robinson and Landry Shamet.
Signing Robinson to a deal that pays $18 million next season feels reasonable in the projection, and adding a Shamet contract that starts at $8 million pushes the Knicks’ number to about $231 million.
That’s around $9 million over the $222 million second apron threshold.
So how do they walk that tightrope?
They could try to move Miles McBride and Tyler Kolek. That would save as much as $6.252 million for 2026-27, but even then New York would still land around $225 million—still above the second apron.
The roster count is the next problem. After those moves, the Knicks would have only nine players under contract. They would then have to sign five more players at veteran minimums. The math suggests trying to force the total under the second apron in 2026-27 could be futile. even if Dolan’s preferences are clear.
There’s a way back in the future—if Towns helps now
The bigger hope for the Knicks sits one season further. The advantage of Towns taking a pay cut is not only what it does in 2026-27, but what it makes possible in 2027-28.
Even if New York exceeds the second apron in 2026-27, the organization could get back under it the following season, avoiding those draft-pick penalties.
The second apron is calculated as 134.4% of the salary cap. While final numbers aren’t set for 2026-27, it currently works out to approximately $233 million for that season. Under this projection, the Knicks could be near the limit in the short term—but still engineer a long-term escape.
For 2027-28, the projected obligations after Towns, Robinson, and Shamet decisions amount to roughly $220 million for eight players. New York would then need to add six more players via minimum deals.
The Knicks’ draft-night positioning gives them an extra lever here: thanks to their 2026 draft-night moves, they own three second-round picks in the 2027 NBA Draft.
Veteran minimum deals carry a cap hit of $2.45 million for 2026-27, while rookie minimums are approximately $1.5 million per year. With that pricing, the Knicks could sign three minimum rookie deals and three veteran minimum deals for 2027-28. Under the projection, that would fill the roster while keeping New York just under $233 million.
In other words: they wouldn’t just cross a line—they could avoid the second apron long enough to keep the consequences off the table.
Where everything lands when 2026-27 begins
The league’s second apron is described as internationally punitive in the way it restricts roster building. For a team trying to stay competitive while winning, remaining under it is an obvious challenge.
The reality for the Knicks is that they may not keep everyone and stay below the second apron for 2026-27. But there is a real path back. That path is built around getting under the second apron when it matters most—2027-28.
And the first domino in that scenario starts with Towns, accepting a pay cut that would reshape the Knicks’ salary room instead of shrinking it.
New York Knicks Karl-Anthony Towns James Dolan second apron NBA collective bargaining agreement Jalen Brunson Jose Alvarado Pacome Dadiet Mohamed Diawara Mitchell Robinson Landry Shamet Miles McBride Tyler Kolek