Jordan Clarkson Signs New Knicks Contract, Latest on NY's Salary Cap for NBA Free Agency

Jordan Clarkson is back for one more season after helping the New York Knicks win the 2026 NBA title.

Clarkson and the Knicks have agreed to a one-year, $3.9 million contract in free agency, per ESPN's Shams Charania.

The Knicks had $5.7 million in projected second apron space prior to signing Clarkson, per Spotrac.

Team owner James Dolan said earlier this offseason he doesn't plan on exceeding the second apron.

The Knicks could now be more limited in a potential pursuit of star free agent LeBron James, who has reportedly shown some interest in the franchise since splitting from the Los Angeles Lakers.

The Knicks are now left with one open roster spot and around $3.3 million in space underneath the second apron, according to ESPN's Bobby Marks.

New York still retains access to the veteran minimum exception, per Marks. ESPN's Shams Charania previously reported James would be willing to accept a minimum contract in order to play with a contender.

Clarkson came off the bench in all 18 playoff games for the Knicks, averaging 4.9 points and 1.7 rebounds often in clutch moments on his team's way to the title.

The Knicks have kept open the possibility of signing a veteran free agent by in part by allowing Mitchell Robinson to walk in free agency and sign a three-year deal with $15.8 million in annual average salary with the Boston Celtics.

New York then used a total of just $17.5 million in salary cap room to re-sign Clarkson, Landry Shamet, Jose Alvarado and Mohamed Diawara while bringing in Andre Drummond as Robinson's replacement, per Marks.

SNY's Ian Begley previously tied the Knicks to an interest in Jonas Valančiūnas, who was recently waived by the Denver Nuggets.

James' agent Rich Paul previously said his client "would be going to the Knicks" if the franchise hadn't won the 2026 title.

Now that Jalen Brunson is the one to have broken the franchise's title drought, ESPN's Shams Charania has described the Miami Heat, Cleveland Cavaliers and Philadelphia 76ers as frontrunners to sign James.

Should James end up elsewhere, the Knicks could potentially use their final roster spot and remaining exception to add Valančiūnas as a depth option behind Drummond.