(Note: For more information on CBA terms and their impact, read this breakdown from June 2024.)
The New York Knicks are NBA champions.
Every last move over the last several years, every tweak of the salary cap, every bold decision has all led up to this moment, with the Knicks ending a 53-year long nightmare on Saturday night in San Antonio.
All of the hard work that President of Basketball Operations Leon Rose and his staff have done to shape one of the greatest teams in franchise history should be enjoyed for a long time, but the beauty of being the ones to lift the Larry O’Brien Trophy is that the turnaround is extremely short.
The NBA Draft is on June 23. Free agency begins one week later. In just over weeks, we’ll probably know the direction they’ll go as defending champions in 2026-27.
It’s a lot of work exploring every nook and cranny of NBA business. Thankfully, SBNation is partnering with SalarySwish to use their data and help answer every question we have about the Knicks’ financial situation and what it might mean this offseason and going forward.
Below are the full, comprehensive details from SalarySwish, as well as an FAQ breakdown.
Knicks Roster, Salaries, Draft Picks, Cap Space and More
Here is a table with all of the Knicks’ salary information, courtesy of our friends at SalarySwish:
FAQ
Now, let’s answer some of your most frequently asked questions about the Knicks’salary cap and draft pick situations moving forward.
What is the Knicks’ cap situation?
According to Salary Swish, the New York Knicks have a projected cap hit of $205.4 million for the 2025-26 season with eight players rostered, leaving them $40 million over the projected salary cap. They are $4.4 million over the luxury tax, $4 million beneath the first apron, and $16.9 million beneath the second apron
The first step in the offseason will be seeing what Jose Alvarado does with his $4.5 million player option. I feel like that could go either way. After that, you probably have to deal with restricted free agents Ariel Hukporti and Mo Diawara, who both should be reasonably affordable. The unrestricted free agents include Landry Shamet, Mitchell Robinson, Jeremy Sochan, and Jordan Clarkson.
Is the second apron inevitable?
For those living under a rock, here’s a second apron explainer. You do not want to be there.
The answer is simple. Yes.
The Knicks, fiscally, cannot retain this roster without going into the second apron. Shamet and Robinson alone will make more than the $17 million in space they have, and that’s not even factoring in their draft picks, Alvarado, or the potential for a Diawara offer sheet. Going under the second apron would be pointless, especially with the proof in the pudding that this roster is capable of a championship.
The good news is that the severe punishments of the second apron only come into place in the third year that you operate in it, so the Knicks have the green light to expand payroll to keep this roster together through the end of the 2027-28 season before resetting. That’s your championship window.
How much will the Knicks pay in luxury taxes this year?
SalarySwish currently estimates about $4 million, which isn’t much but that’s before the offseason signings.
This will be the team’s third year in the luxury tax, which will be the last before the team is in the extremely restrictive repeater tax. If we assume the Knicks run it back with market value contracts for some of these players, they’ll likely be $15 million over the second apron, which would amount to over $90 million in total luxury tax.
Get ready to pay up, Mr. Dolan.
Who are extension candidates?
Obviously excluding players hitting free agency, there’s a few players who will be eligible to extend this offseason.
The big one is the Big Bodega, who’s due to make $57 million next year in the final guaranteed year of his last extension with the Minnesota Timberwolves before a $61 million player option in 2027-28. Towns is eligible to sign a four-year, $272 million supermax, a deal worth $68 million per year. His Year 1 salary won’t be too dissimilar to what he’d get anyway in 2027-28 with the player option, but it’ll escalate as he enters his mid-30s.
Is there a chance he takes less? Sure, but we can’t count on that. Now that they’ve won a title, expect guys to get their due rather than sacrificing.
The second key player immediately eligible is sixth-man Deuce McBride, who, despite a disastrous Finals performance, is an integral part of the bench with a criminally low salary of $4 million. He’s now eligible to sign a four-year, $95 million extension, which he won’t get, but could sign for anything less. He’s probably worth $15 million AAV on the open market, so it’ll be interesting to see how the Knicks approach this.
The final player who’ll be extension-eligible is Josh Hart, who will be eligible to extend his current contract on August 10. He’ll be eligible to sign for over $30 million a year, but he won’t receive that. This one is also interesting, as despite how integral he is to the identity of this team, he might not have much longer here.
Hart has made it clear he doesn’t want to play too deep into his 30s, and he turns 32 next March. With a $22 million team option due in 2027-28, could it be possible that the Knicks ride out this contract through Hart’s age-33 season and see how much longer he wants to play at that point?
What draft picks do the Knicks have?
Hey, the Knicks have a first-round pick this year!
Unlike in the NFL, MLB, and NHL, the NBA champion’s pick isn’t automatically moved back to No. 30, so the Knicks will pick 24th in next Tuesday’s draft. They will additionally receive the 31st pick from the Washington Wizards after their flagrant tanking finally ended with the conditional pick not conveying, giving the Knicks their second-round picks in 2026 and 2027. They also have the 55th pick after complex pick-swapping rules resulted in them retaining their pick.
The Knicks actually made out like bandits here despite not receiving a first-rounder. Now, if a team finishes with the worst record in the NBA, their second-round pick gets thrown all the way back to No. 46 thanks to tanking reform. And with the Wizards trying to compete next year, the Knicks won’t have to worry about that with the pick they get for next season.
After those 2026 picks, the Knicks have seven future second-round picks (including three in 2027) and their own first-round picks in 2030, 2032, and 2033. Additionally, they have the lesser of theirs or the Brooklyn Nets’ 2028 first. Due to the Stepien Rule, the Knicks are not allowed to trade their 2030 or 2032 picks unprotected, but are allowed to use them in swaps. The status of the team in the second apron will ultimately determine if the 2033 pick is able to be traded.
If you want to take the role of GM and mock up some trades, check out FanSpo or ESPN’s trade machine. And don’t forget to check your numbers with Salary Swish!
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