Why did the Knicks and Timberwolves trade KAT and Julius Randle now? Look at the money

In one of the most intriguing and surprising trades the NBA has seen in a long time, two talented teams traded prominent big men just days before the start of the preseason. The Minnesota Timberwolves are sending Karl-Anthony Towns to the New York Knicks in exchange for Julius Randle, guard Donte DiVincenzo, forward Keita Bates-Diop and a future first-round pick via the Detroit Pistons.

While there are many reasons why this move is so outstanding, the financial aspect provides both intrigue and a possible explanation as to why both teams made the deal now rather than during or after the upcoming season.

The money

Randle is currently eligible for an extension and has a player option worth $30.9 million for the 2025-26 season. He can control his own destiny in the short term, but does not have a longer contract. This will be his age-30 season, so a new contract via extension or free agency will likely cover his early 30s, and there's a lot of variability in his next contract since Randle has been All-NBA two times in the last four seasons teams but has also struggled with more inconsistencies than most players who have received these awards. Therefore, it makes sense that negotiations could be contentious as Randle had his best seasons to lean on while downside risk likely impacted the Knicks' offer. While Bird rights often result in free agents returning to their previous team, it's possible that the teams were far enough apart to be concerned about what discussions would look like in the 2025 offseason.

Towns, on the other hand, is under contract for much longer but has a massive salary: $49.2 million for 2024-25, $53.1 million for 2025-26, $57.1 million for 2026 -27 and a $61 million player option for 2027-28. The Elizabeth, New Jersey native is just a year younger than Randle, and this player option applies to his age-32 campaign. Those numbers were even greater for the Timberwolves as Anthony Edwards received a 30 percent max deal in his fourth season by being named to an All-NBA team. Rudy Gobert has another season or two left depending on whether he exercises his 2025-26 player option on his huge contract. The Wolves are currently and seemingly will be one of the most expensive teams in the NBA for the foreseeable future. Incredibly, trading with the Knicks only saves them about $9 million in player salaries, but reduces their total player costs by nearly $50 million for the 2024-25 season alone because the luxury tax is so burdensome in the major leagues.

One way to look at this trade financially is the difference between Town's actual contract and Randle's likely wages over the same period. We don't know Randle's future, but that margin is significant for the Timberwolves given their commitments and standing outside of major markets: They would be a remarkably expensive team for a while and needed to be Towns and possibly Gobert takes significant risks The next contracts could fail at some point. However, the franchise is still asset poor following the Gobert transfer, so changing course seemed difficult and could have been much more difficult. At the same time, the Knicks are based in the largest city in the United States and have a wealthy owner who appears willing to foot a hefty bill over multiple seasons. The Knicks also lacked long-term flexibility, so the opportunity cost of spending more over the next few seasons wasn't a big factor in team quality. Towns is a very good player but is paid like a superstar, a discrepancy that matters more to the Timberwolves than the Knicks and helps justify the trade.

Before this deal, it looked like Tim Connelly, the Wolves' head basketball coach, would have to commit to Gobert long-term through 2025 because if he declined his player option and signed at a lower salary for 2025-26, that would be saved Given the huge tax burden, the franchise made a tremendous amount of money this season, similar to what Khris Middleton and the Bucks did in 2023. In June of the same year, Middleton opted out of his $40 million contract for 2023–24 and signed a new three-year deal worth at least $93 million.

Now, it's less certain that the Timberwolves will need those savings, depending on Randle's status. The four-time Defensive Player of the Year may lose leverage in less than a year to land a stronger long-term deal in his 30s. Instead, there's now a chance the Timberwolves could be flexible and potentially have cap space in the summer of 2026, when Gobert and Mike Conley's current contracts expire.

It's far too early to tell what cap space they will have (if any) and far too early to predict whether they could actually make a difference through free agency or trade. The opportunity to upgrade to one of the league's best young players in Edwards, whose talent is closer to his age, opens a new door for the Wolves – even if it's unlikely they'll go through with it at the moment. Similarly, the fact that DiVincenzo is on a team-friendly deal for another three seasons helps stabilize the roster and gives Connelly leverage in negotiations with Nickeil Alexander-Walker and others – perhaps even including Conley if rookie Rob Dillingham shows promising results next year-plus.

The uncertainty surrounding Randle's financial future means that an eventual resolution completely changes the dynamics of the Timberwolves books and the long-term valuation of the trade. There's a chance Randle could re-sign long-term at a high price, clearing much of the tax bill while restoring Gobert's bargaining power. It's also possible that Randle's next contract will be significantly shorter or even that he won't be with the team, opening up the possibility of a new addition in 2026, albeit at the expense of a prominent player.

This trade is also significant because of the constraints both the Timberwolves and Knicks had to overcome to make this massive deal legal under the collective bargaining agreement. Due to Mikal Bridges' offseason deal, the Knicks have a hard cap on the second frontcourt and are just $1 million under that limit, which they cannot exceed for any reason for any period of time this league year. The Timberwolves are deep in the second frontcourt, so they can't take on more salary than they spend in a trade, among other cumbersome restrictions. Therefore, a trade between these two teams would have to involve at least one other team taking on the salary, a role that the Charlotte Hornets will fill.

Go deeper

Karl-Anthony Towns' impact in Minnesota extends far beyond basketball

On the pitch

The machinations on the pitch are what make this deal so fascinating.

Towns is an incredible talent with two All-NBA selections and four All-Star appearances on his resume and a current streak of eight consecutive seasons averaging at least 20 points per game. He has also established himself as a premier shooter for a 7-footer, shooting 40 percent of his career 3-pointers over the past few seasons, making about six attempts per 36 minutes. That, combined with his post-up game, makes Towns a matchup nightmare for opposing defenses and gives Jalen Brunson a dynamic pick-and-roll partner to rev up the Knicks' offense.

Towns came into the NBA as an exciting defensive player, but never lived up to his promise. Few people know Towns' limitations in this regard better than Knicks head coach Tom Thibodeau, who coached Towns for three seasons in Minnesota. Years after Thibodeau's departure, Connelly decided to trade a large number of picks and players for Gobert, with the vision that the Timberwolves would have a strong defensive base by adding a center alongside Towns. That was a key factor in their appearance in the 2024 Western Conference Finals. Given New York's lack of other options, Towns will play primarily as a center, at least to begin the season, although that role could change over the remainder of his lucrative contract.

The Timberwolves will replace Towns with Randle, another talented but polarizing big man with weaknesses that are arguably more pronounced than his strengths. In Randle's final All-NBA season (2022-23), he posted a 29.5 percent usage rate, the fifth-highest of any player listed as a power forward or center, behind only Giannis Antetokounmpo, Joel Embiid, LeBron James and Kevin Durant . The Knicks ranked second in offensive rating this season and were nearly six points per 100 possessions better when on the floor this season. However, the 6-foot-2 Randle cannot play center credibly on defense and is a much less consistent jump shooter than Towns, shooting 41 percent and 34 percent from 3 in his two All-NBA seasons, respectively This season, however, only 31 percent have not received this honor in the last two campaigns.

Offensively, the combination of Randle and Gobert will be much easier to defend, but Randle's ability to create offense will be useful as the season progresses, especially during periods when Edwards and Conley, or both, are not on the field. Additionally, DiVincenzo gives the Timberwolves valuable perimeter depth as he becomes their best shooter but also a capable defender who should be able to work with either Edwards or Conley – and potentially both in some lineups. He could also provide important rotation coverage if Dillingham takes longer than the Timberwolves would like to develop. While it will take some time for it all to unfold, there is a chance that DiVincenzo is the more impactful addition for the Timberwolves in this area, both now and in the three seasons remaining on his contract.

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(Photo by Julius Randle and Karl-Anthony Towns: Sarah Stier / Getty Images)