The Knicks have five days to decide on Iman Shumpert's contract extension.

According to league sources with knowledge of the dynamic between the Knicks and Shumpert, there has been no conversation yet about a possible extension.

Unless the Knicks change course before Friday’s deadline, the lack of an extension makes it likely that this will be Shumpert’s last season with the Knicks.

Here’s why: If the Knicks don’t extend Shumpert, he will be able to hit the market this summer as a restricted free agent.

As one of the better young perimeter defenders in the league, Shumpert should draw interest in free agency. If he has a strong season with the Knicks, that interest -- and the market for his services -- will only increase.

The Knicks are unlikely to match any significant contract offers for Shumpert this summer. They want to preserve cap space for the summer of 2015 and 2016, when they hope to land a free agent to pair alongside Carmelo Anthony.

Matching an offer for Shumpert, of course, would eat into that cap space. The guess here is that they'd rather keep their options open than commit money to Shumpert.

For what it’s worth, the current regime seems to be much more optimistic on Shumpert than head coach Mike Woodson was last season.

Here’s Derek Fisher talking about Shumpert last week:

“I think Iman is still evolving. And I don’t think there is a box to put him in at this point. I think he’s still growing as a player, as a young man. And I think as that evolution continues, we’ll actually learn as we go what is truly possible for him. The things I do know is he’s going to work as hard as he can to get wherever his ceiling is and those are the types of guys you want to have around.”

Assuming they don’t change course between now and Friday’s deadline, the Knicks are taking a risk in opting not to extend Shumpert.

Why?

If Shumpert has a strong season, he could command a significant contract offer this summer, as discussed above. And he probably won’t be willing to give the Knicks any hometown discounts in free agency.

The Knicks’ dangling of Shumpert in trade talks last season rankled some in his camp.

“They will have to pay up this summer,” is how one Shumpert confidant views the dynamic of his potential free agency.

Of course, this all depends on how Shumpert performs this year. He is coming off a season in which he regressed offensively. Will he be able to improve this year in the triangle? If so, that could help the Knicks during the season but hurt them this summer.

Here's something else to consider: It's a minor issue, but if Shumpert has a strong season, there will likely be demand from the fan base to re-sign him this summer.

So Shumpert’s free agency could also turn into a hot-button issue among fans.

Also, with the increased salary cap on the horizon, it's worth wondering if the Knicks could ink Shumpert and still have money in 2016 to chase big-name free agents.

Lastly, if they allow him to hit free agency, the Knicks are at risk of losing Shumpert -- a semi-proven commodity -- with the hope of using the cap space saved to land a free agent, which is no sure thing.

Question: How do you think the Knicks should approach Iman Shumpert’s future? Should they let him walk?

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