Knicks exploited CBA loophole paying just $1 over minimum to sign and trade players in KAT deal: Report
The New York Knicks added pieces via trade to bolster their ranks and have a bigger chance to challenge for the 2024-25 NBA championship. The Karl-Anthony Towns trade had an odd development, initially being agreed to on Sept. 27 but it wasn't until Oct. 2 that it was finalized.
The new Collective Bargaining Agreement made this a complex move for all the parties, but the Knicks found a loophole to legally execute the transition. Reporter Fred Katz noted that the team wasn't allowed to add multiple minimum salaries since they are a team over the first "apron" of the tax.
They needed to find a way to pay DaQuan Jeffries, Charlie Brown Jr. and Darius Washington before adding more to their debt. The front office only paid one dollar more than the minimum so they could add all the new salaries and complete the transaction.
Katz adds that the league wasn't happy about this loophole, as they try to shrink them as much as possible.
"I have heard from various people that the league isn’t thrilled about this — but such is the way it goes with new CBAs. The NBA tries to close up loopholes and then smart people working for teams find new ones," Katz added.
Now, KAT can officially become a Knick, while Julius Randle and Donte DiVincenzo should be good to go for the Timberwolves.
Karl-Anthony Towns explains how he grew up being a Knicks fan
Appearing on Shannon Sharpe's "Club Shay Shay" show, Karl-Anthony Towns explained how he was connected to the New York Knicks at a young age thanks to his mother and father.
"When my mom immigrated over from D.R., she always went to the Knicks games and I loved my mom," he said. "Also, the Knicks were one of the few teams that gave my dad a chance in the NBA, as well. It was training camp, but again.
"They gave my dad a chance, my mom grew up talking so much about Madison Square Garden and the history that comes with it, of course. I was impressionable and on top of that, the most impressionable stage of my career when playing basketball, especially as a young kid, I'm seeing Linsanity go crazy."
Karl-Anthony Towns is ready to write another chapter in his career and help Jalen Brunson, Josh Hart and Mikal Bridges win the Larry O'Brien trophy next year.