Examining Knicks' Salary Cap, Decisions for 2025 NBA Free Agency After Pacers Loss

After bowing out in the semifinal round in two consecutive years, the New York Knicks entered the 2024-25 season looking to take the next step. While New York couldn't keep up with the Boston Celtics and Cleveland Cavaliers during the regular season, it made a deep push in the playoffs

Led by head coach Tom Thibodeau and stars like Jalen Brunson, Karl-Anthony Towns and OG Anunoby, the Knicks spent most of the year as a top-five NBA team. The Knicks navigated numerous injuries throughout the season but appeared to find their stride just in time for the postseason.

The Knicks stunned the Celtics in a 4-2 series to reach the Eastern Conference Finals and a matchup with the Pacers, but they fell to Indiana in six games with a loss on Saturday.

Now that New York's playoff run has ended, though, it's time for Thibodeaux and general manager Gersson Rosas to start reloading for the 2025-26 season.

Here, you'll find a look at the Knicks' upcoming cap situation, top contract decisions and potential targets for 2025 free agency, which will officially begin on July 6.

2025 Salary Cap

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Rosas and team president Leon Rose won't have a ton of flexibility this offseason. New York is slated to have nine players under contract—including Townes, Anunoby, Brunson, Mikal Bridges and Josh Hart—and is projected to be $3.8 million over the first luxury-tax apron.

While New York is projected to be $8 million below the more restrictive second apron, that doesn't leave a ton of wiggle room. One signing or extension could put the Knicks over the second apron, leading to severe free-agent and trade restrictions under the newest collective bargaining agreement.

This could leave New York looking to make a splash via a trade while still under the second apron instead of working the free-agent market.

ESPN's Shams Charania reported that there was "mutual interest" between the Knicks and Kevin Durant ahead of the trade deadline. Bleacher Report's Eric Pincus listed Cole Anthony, Isaiah Stewart II and Coby White as potential trade targets for New York back in March.

Of course, a blockbuster trade is unlikely, as the Knicks have limited trade capital following the deals for Towns and Bridges.

Top Contract Decisions

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Mikal Bridges

While most of New York's key contributors are locked up for the foreseeable future, it will have a few contract situations to address this offseason.

Precious Achiuwa, Cameron Payne, Delon Wright and Landry Shamet are set to be unrestricted free agents. The Knicks also have club options with P.J. Tucker and Ariel Hukporti.

MarJon Beauchamp, Anton Watson and Kevin McCullar Jr.—who are on two-way contracts—are scheduled to be restricted free agents.

Additionally, the Knicks may opt to extend Bridges this offseason. The 28-year-old, who was acquired in a July trade, declined a two-year, $60 million offer early in the season, according to The Athletic's James Edwards III.

By waiting until this summer to consider an extension, Bridges will be eligible for a four-year deal worth 140 percent of his current salary instead of a two-year deal worth 120 percent. If an extension isn't reached, Bridges can instead hit free agency in 2026.

Fans should expect Bridges' situation to be the headliner of New York's early offseason.

Free Agents to Pursue

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Steven Adams

With a terrific young roster that is one of the best in the NBA, the Knicks are unlikely to tear things down or chase one of the bigger names on the free-agent market. Given Mitchell Robinson's durability concerns and the potential of Achiuwa departing, New York might covet some frontcourt depth.

Milwaukee Bucks forward Taurean Prince could be a strong target for the Knicks because of his fairly consistent production (eight-plus points per game in each of the last three seasons) and positional versatility.

A second-team center like Jericho Sims, Steven Adams or Marvin Bagley III could also make sense.

Adding a little more scoring off the bench certainly wouldn't hurt, and the Knicks could have some options. Shooter-for-hire Dennis Schröder is set to be available, as are Phoenix Suns point guard Tyus Jones and Memphis Grizzlies shooting guard Luke Kennard.

In general, fans should expect the Knicks to target depth instead of making a splash in free agency.

*Cap and contract information via Spotrac.