Knicks’ Flurry of Draft Night Trades Are Aimed at a Bigger Goal

The New York Knicks, once again, took an alternative path during the NBA Draft.

Sitting with the 24th pick in the first round of the draft on Tuesday, the Knicks instead decided to use the draft as an opportunity to save money.

The Knicks first traded the 24th pick to the Los Angeles Lakers for the 25th pick in the draft. According to Shams Charania of ESPN, the Knicks also received cash considerations. New York then used No. 25 to draft guard Sergio De Larrea, a Spanish guard playing in Liga ACB.

Amid widespread speculation that the Knicks would "stash" De Larrea this season (which would allow them to keep his draft rights but avoid keeping him on their cap sheet), Charania later reported that the Knicks traded away De Larrea in a series of moves that ultimately netted them a whopping five second-round picks.

Sources: New York traded No. 25 pick Sergio De Larrea to the Dallas Mavericks for No. 30 Koa Peat and two second-round picks. And then the Knicks traded Peat to the Phoenix Suns for three-rounders and cash. So Knicks move out of the first round -- pick up 5 seconds and cash.
— Shams Charania (@ShamsCharania) June 24, 2026

In total, the Knicks’ draft night moves seemed aimed at saving money.

Knicks are using draft trades to save money

Last week, Knicks owner James Dolan said on WFAN radio that the team will not spend into the second apron. This throws a bit of a wrench into the Knicks’ offseason plans.

The Knicks have several key members of their bench hitting free agency this offseason, including Mitchell Robinson, Laundry Shamet, and Jordan Clarkson. Jose Alvarado also has a $4.5 million player option for the 2026-27 season—it was reported that he and the Knicks agreed to push back the decision date for whether to pick up that option.

With an expensive starting five already locked in place, re-signing each of their free agents would almost certainly push the Knicks into the second apron.

Trading back one pick, then trading De Larrea, saves the Knicks several million dollars in cap consideration, leaving more money to attempt to bring back their key free agents. As ESPN's Bobby Marks points out, the No. 25 pick carried a value of $3.2 million in the first year of that rookie contract.

Pick 25 has a $3.2M value in the first year

Savings for NYK if the pick is stashed
— Bobby Marks (@BobbyMarks42) June 24, 2026

This doesn’t guarantee that the Knicks will retain those players. Players like Robinson and Shamet are expected to have strong markets and several suitors. Coming off a strong Finals performance, Alvarado could decline his option, hit free agency, and sign for a richer deal.

However, all of these trades and loading up on less-expensive or even non-guaranteed second-round picks helps make a re-signing easier.

If the Knicks want to retain those players and stay below the second apron, they may very well need those players to give New York discounts on their contracts. It’s unclear if those players would do that.

Furthermore, even if the Knicks do agree to new deals with those free agents, players like Karl-Anthony Towns, Miles McBride, and Josh Hart are all extension-eligible. Signing any or all of those players to extensions will almost certainly push New York past the second apron in future seasons.

It’s worth noting that while the second apron has several restrictive team-building stipulations, the Knicks would be better suited than most others to withstand those restrictions if they decided to bring back Robinson, Shamet, Alvarado, and more.

New York would still be a team with a deep rotation and even positional balance. The second apron is especially oppressive to teams trying to build into championship contenders—not teams who are already the reigning champions. If the Knicks let their free agents walk, they will be limited in how much they can spend in free agency on their replacements.

For now, the Knicks appear to be trying to give themselves as much breathing room from the second apron as possible in case they can bring back players like Robinson and Shamet. That creates potential for even more deals on Wednesday as New York potentially limits the size of its rookie class in favor of seeking out veteran help.

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