Karl-Anthony Towns, Josh Hart Trades Teased by Shams in New Video amid Knicks Contract Rumors

The New York Knicks have maintained their desire to remain under the second tax apron, but it could cost them two of their best players.

During Monday's episode of NBA Today, ESPN's Shams Charania reported that Karl-Anthony Towns and Josh Hart could be trade candidates this season if they don't sign contract extensions soon.

"Josh Hart has already hinted that as this gets closer to February, which is around the trade deadline, the temperature could rise if Karl-Anthony Towns and Hart himself are not extended," Charania said. "So far, these sides are not close."

Towns is eligible for a four-year deal worth over $276 million, while Hart is eligible for a four-year, $131.2 million deal. While both players were instrumental in leading the Knicks to their first NBA championship since 1973, team owner James Dolan has been adamant that he will not go into the second spending apron.

Towns reiterated on Monday that he and the Knicks are not close on an extension despite his willingness to take a team-friendly deal.

"Simply put – I want to do something to keep the team together and can work with the Knicks and also values me. And none of those things are close to happening," Towns told reporters.

When asked if he thought winning a championship would facilitate negotiations for a new deal, Towns said, "No s--t, Sherlock. I just won a championship. You'd think it was pretty easy. Unless you guys [reporters] think I have something else to prove."

It sounds like the Knicks are running the risk of making some of their top stars unhappy. While it's important to maintain good salary cap health, the team's chemistry was unmatched last season.

With the start of the 2026-27 season approaching on Oct. 20, the Knicks are running out of time to eliminate the distractions and resolve their contract situations with Towns and Hart.