The New York Knicks have decided to halt contract extension talks with key players Karl-Anthony Towns and Josh Hart until later in the season, as the team prepares for the start of the new NBA campaign. A spokesperson for the Knicks told ESPN's Shams Charania that the organization is focusing solely on preparing for the upcoming season and will revisit negotiations at a later date.

Talks between the Knicks and Karl-Anthony Towns, who played a major role in the team's first NBA title in 53 years, have reached an impasse. According to ESPN, Towns is eligible for a four-year, $276 million extension but no deal has been made. The team's financial situation is complicated by the looming "second apron," a salary cap threshold that brings severe penalties if crossed. Team owner James Dolan has stated he does not want to go over this threshold, which already led to the departure of backup center Mitchell Robinson to the Boston Celtics.

Towns, who turns 31 in November, averaged 15.9 points, 10.6 rebounds, and 4.9 assists last season. His current contract includes a $57 million salary this season and a $61 million player option for the 2027-28 season. The Knicks are reportedly offering less money per year in exchange for more guaranteed years, but Towns may be unwilling to accept a discount.

The Knicks also have upcoming extension decisions for Josh Hart, as well as future deals for Jalen Brunson and OG Anunoby.

Despite the stalled talks, ESPN’s Brian Windhorst believes a new agreement is still possible if Dolan changes his stance on the salary cap. Towns has said he wants to remain with the Knicks, but may look for maximum contract offers elsewhere if the team does not change its position.

The team is expected to revisit contract talks later in the season, after they have focused on starting the year strong and defending their championship.