Knicks Trade Deadline FAQ: Picks, Cap Space, Exceptions, and Real Limits

The‍‌‍‍‌‍‌‍‍‌ Knicks find themselves in a difficult situation with the Feb. 5 trade deadline just days away. Every talk about potential trades wraps up around the same fact that makes everyone uneasy: they barely have anything to work ‍‌‍‍‌‍‌‍‍‌with.

New‍‌‍‍‌‍‌‍‍‌ York basically mortgaged its entire future just to be able to put together their current roster. They had to give up five first-round draft picks just for the Mikal Bridges deal.

So now, when the discussions are happening around bringing in new players or even going all out for Giannis Antetokounmpo, the truth is far less than what fans might wish ‍‌‍‍‌‍‌‍‍‌for.

One‍‌‍‍‌‍‌‍‍‌ way to figure out what the Knicks might do and what they can't is to know precisely what they have. Here's an overview of their draft picks, salary limitations, and the real limits that Leon Rose and the front office have to deal ‍‌‍‍‌‍‌‍‍‌with.

Knicks Draft Picks

Jan 9, 2026; Phoenix, Arizona, USA; New York Knicks guard Tyler Kolek (13) against the Phoenix Suns at Mortgage Matchup Center. Mandatory Credit: Mark J. Rebilas-Imagn Images | Mark J. Rebilas-Imagn Images

First-Round Picks: 5

The Knicks own their own first-round picks in 2026, 2030, and 2032. These are straightforward - New York controls them completely.

They also have Washington's 2026 first-rounder, but there's a catch. It's protected for picks one through eight. Since the Wizards have the worst record in the league right now, their pick will very likely land in the top eight and stay in Washington. When that happens, it converts into Washington's second-round picks in both 2026 and 2027.

The fifth pick is actually Brooklyn's right to swap in 2028. If the Nets finish with a worse record than the Knicks, Brooklyn can swap picks and take the better selection.

Second-Round Picks: 6

New York owns its own second-round picks in 2026, 2027, and 2032 outright.

The fourth pick comes from Orlando, Detroit, or Milwaukee in 2026 - specifically, whichever team's pick is least favorable (meaning the highest pick number).

The fifth and sixth picks are both in 2028. One comes from Boston, but it's protected from picks 31-45, meaning if Boston's pick falls in that range, the Knicks don't get it. The other is the more favorable pick between Indiana and Phoenix.

Cap Space

The Knicks sit just $148,358 under the second apron and are hard-capped there for the 2025-26 season. Their current payroll sits at roughly $207.6 million, which places them above the first apron but below the second apron threshold of $207.824 million.

Looking ahead, the Knicks are expected to stay below the second apron this season and next, though future extensions could push them over in 2026-27.

Being above the first apron means the Knicks cannot take back more salary than they send out in trades. If they want to acquire a player making $10 million, they need to send out at least $10 million. There's no ability to use exceptions to bridge salary gaps.

The hard cap at the second apron is even more restrictive. New York cannot exceed that $207.824 million threshold under any circumstances this season. Every transaction must keep them below that line, which severely limits their flexibility.

Trade Exceptions

Jan 9, 2026; Phoenix, Arizona, USA; New York Knicks guard Mikal Bridges (25) against the Phoenix Suns at Mortgage Matchup Center. Mandatory Credit: Mark J. Rebilas-Imagn Images | Mark J. Rebilas-Imagn Images

The Knicks currently have zero trade exceptions available. They used their Taxpayer Mid-Level Exception on Guerschon Yabusele during the summer and don't have access to the Bi-Annual Exception.

Without exception, every trade needs to match salaries closely. This eliminates the possibility of absorbing a player into empty cap space or using an exception to add salary without sending equivalent money back.

The hard cap also prevents salary aggregation in trades. The Knicks cannot combine multiple players to match a higher-salaried player coming back. Deals need to work on a more straightforward player-for-player basis or with very precise salary matching.

Other Trading Limits

The Stepien Rule is an NBA rule that prevents teams from trading away first-round picks in back-to-back years. Because of past trades, the Knicks are blocked from trading their 2027, 2029, and 2031 first-rounders. This means they can only offer their 2026, 2030, and 2032 picks, or they can offer swap rights, where another team gets to choose which pick they want if it's better than their own.

The roster construction creates challenges beyond just cap rules. Most of the payroll is concentrated in five players: Karl-Anthony Towns, Jalen Brunson, OG Anunoby, Mikal Bridges, and Josh Hart. Trading any of them would require taking back a similar salary.

The most tradable contracts are Yabusele ($5.5 million), Pacome Dadiet, Landry Shamet, Mitchell Robinson, and Miles McBride. However, moving rotation players without getting equivalent value back weakens the depth.

Mikal Bridges cannot be traded until Feb. 1 due to extension rules. Any deal involving him would need to wait until just four days before the deadline, compressing the timeline for negotiations.

The financial restrictions also mean the Knicks are limited buyers at the deadline. Small moves involving Yabusele and second-round picks represent the most realistic path forward without breaking up core pieces.

Make sure you bookmark Knicks on SI for the latest news, exclusive interviews, film breakdowns and so much more!