The New York Knicks are facing a crucial financial decision as they navigate the upcoming NBA season. Under the leadership of President Leon Rose, the Knicks have managed to steer clear of paying the luxury tax for the past four years. This avoidance has raised eyebrows across the league, especially considering the team’s location in the lucrative New York market.

In Rose’s first season in 2020-21, the Knicks boasted the lowest payroll in the league, a trend that continued over the following seasons, ranking 28th and then 20th. Despite the franchise’s history of struggling on the court while simultaneously facing hefty luxury tax bills, Rose’s tenure has been marked by financial prudence and strategic planning.

However, the Knicks now find themselves at a crossroads. In order to maintain their current roster and potentially re-sign key players like OG Anunoby, the team may have to dip into the luxury tax pool. Anunoby, expected to decline his player option and test free agency, presents a significant financial commitment for the Knicks.

The trade involving Anunoby in December was a calculated risk that could now impact the team’s salary cap situation. His impressive performance during his brief stint with the Knicks has only heightened the team’s desire to retain him, despite the potential financial implications.

As the Knicks contemplate their next steps, including the possibility of retaining players like Isaiah Hartenstein, they must weigh the financial costs of entering the luxury tax territory. The decision to ‘run it back’ and keep the team intact could have far-reaching consequences, limiting the team’s flexibility in roster management.

For the Knicks, the looming luxury tax dilemma represents a pivotal moment in their financial strategy. As they stand on the brink of potentially incurring these additional costs, the team must carefully assess the long-term implications of their financial decisions in order to sustain their competitiveness in the NBA.