[Katz] Despite Dolan’s desires, [the Knicks’ front office] wants to go over the second apron, according to league sources, who were granted anonymity to speak freely. But so far, Dolan has not changed his mind.
https://www.nytimes.com/athletic/7395474/2026/06/26/knicks-second-apron-james-dolan-nba-luxury-tax/
The second apron, a payroll threshold that projects to be \(222 million in 2026-27, might scare off most organizations, but until Dolan popped up on the radio earlier this month, New York was not supposed to be one of them. As the general spiel goes, the issue with crossing into such expensive territory, a marker that’s \)21 million above the luxury tax, is not just the money; it’s the lost resources. Go beyond that $222 million figure, and a franchise kisses away the ability to make most types of trades and execute most kinds of free-agent signings.
The Knicks’ front office knows this. And yet, it also understands that dipping below the second apron would lead to much of its depth flocking elsewhere, which is why, despite Dolan’s desires, it wants to go over the second apron, according to league sources, who were granted anonymity to speak freely. But so far, Dolan has not changed his mind.
Robinson, Shamet, Alvarado, Clarkson and Ariel Hukporti can hit free agency next week. If Dolan changes his mind before then, the Knicks can retain their guys. But in doing so, their payroll (and luxury-tax payments) would reach new levels.
Let’s outline the cheapest realistic scenario in which the Knicks re-sign their most consequential second-stringers. Hypothetically, let’s say Robinson re-signs on a \(15 million 2026-27 salary; Shamet comes back for \)5.5 million; Alvarado declines his \(4.5 million player option and lands on a three-year, \)9 million contract, choosing security over a slightly higher salary. The Knicks round out the roster by dumping third-year wing Pacôme Dadiet, then signing two veterans and one of their second-round picks to minimum deals.
In that case, they would go approximately \(8 million over the second apron threshold, resulting in a tax payment of \)90 million.
The money balloons from there. For example, if Robinson were to cost \(20 million, Shamet cost \)9 million and Alvarado picked up his player option, the Knicks would climb \(18 million above the second apron, resulting in a tax bill near \)150 million.
If the mandate from Dolan sticks, if the Knicks actually stay below the second apron, breathing room would close up quickly. They would not be able to bring back Robinson. They could use the \(6 million mid-level exception to find another backup center, but then Shamet would be gone. Or that \)6 million could go to Shamet, who is due for a raise, but then the rest of the roster, including Robinson’s former spot, receives only minimum contracts.
The Knicks employ one of the league’s best-respected cap strategy departments. They will find ways to cut corners. They just swindled trade after trade at the NBA Draft, heading into Tuesday with picks No. 24 and 31 and sliding down to save money. Of course, those moves have already sacrificed potential talent and depth. They can go up to four total weeks during the regular season with fewer than 14 players on the roster, which would trim some pork. They could technically go over the second apron temporarily, as long as they dipped back below it before the end of 2026-27. If they went right up against the second apron, they would still run up a tax bill of $49 million.
So, it could ding Dolan an extra \(40 million to \)100 million, maybe more, for the Knicks to scoot past the second apron. But dipping below it would result in an incomplete group that still lacked flexibility. It would mean breaking up a champion, one filled with players still in their primes.