Judge sends Knicks-Raptors dispute to NBA Commissioner Silver

On Friday, a New York judge ruled that NBA Commissioner Adam Silver should settle a dispute between the New York Knicks and Toronto Raptors over the alleged theft of thousands of confidential files.

Less than a week after the Knicks sued the Raptors in August 2023 for alleged theft, Toronto asked Silver to intervene and help resolve the dispute. The Raptors continued those efforts in court documents in the following months, arguing that the lawsuit was “not a waste of judicial resources” given Silver’s authority to resolve it.

The Knicks, who were seeking more than $10 million in damages in the lawsuit, denied the Raptors’ request, arguing that Silver should not become involved in the case, in part because of his close relationship with Raptors governor Larry Tanenbaum, who is also chairman of the NBA’s board of governors.

According to court documents obtained by ESPN, Judge Jessica Clarke weighed in on Friday and sided with the Raptors, who are now turning the case over to Silver.

For now, the case in U.S. District Court in Lower Manhattan is on hold as the parties seek to potentially find a solution out of court.

If Silver decides the case is not subject to arbitration, the motion says the court must be notified within seven days of the decision. All parties have until Dec. 13 to provide the court with an update on the arbitration process.

“The Raptors and (Raptors owner Maple Leaf Sports & Entertainment) are pleased that the court agreed that this matter should be resolved by the NBA, which we believe is the proper forum for resolving disputes of this type,” a Raptors spokesman said in a statement to ESPN. “We hope this brings this matter closer to resolution.”

A spokesman for MSG Sports, the Knicks’ owner, said in a statement to ESPN that the team “continues to evaluate our legal options.”

“We were the victims of the theft of confidential and proprietary files in clear violation of criminal and civil law,” the statement read. “We do not believe it is appropriate for the NBA Commissioner to rule on a matter involving his boss, the NBA Chairman, and his team.”

The NBA declined to comment.

In the initial complaint, the Knicks alleged that the Raptors poached Ikechukwu Azotam, who worked for the Knicks from 2020 to 2023, and ordered him to provide a series of inside information after the Raptors began recruiting him in the summer of 2023. The Knicks argued that the effort was intended to provide the Raptors with a competitive advantage.

“The truth or falsehood of this allegation is not an issue at this stage,” Clarke wrote in Friday’s letter. “Instead, the question before the court is where this case should be heard: whether in this court or in arbitration before the Commissioner of the National Basketball Association.”

The judge added that the answer to this question depends on the language contained in the NBA constitution, which, in accordance with provisions “d” contained in Art. 24 is intended to give Silver broad powers over such disputes.

Specifically, the bylaws provide that “The Commissioner shall have exclusive, full, complete and final jurisdiction over any dispute involving two (2) or more Members of the Association.”

Relying on similar court precedents involving other broad arbitration clauses, the judge wrote that “the determination of whether this dispute is arbitrable rests with the NBA Commissioner, not with the Court.”

The Knicks alleged that Azotam, who worked for the Knicks as an assistant video coordinator and then as director of video/analysis/player development assistant, sent the Raptors thousands of confidential files, including play frequency reports, a preparation manual for the 2022 season- 23, files from video recordings, opponent analyzes and others.

The Knicks also alleged that Azotam did so at the request of the Raptors, who they believed were trying to “organize, plan and structure a new coaching staff and video operators,” the August 2023 complaint said.

The Raptors, Azotam, Raptors head coach Darko Rajaković, player development coach Noah Lewis and 10 “unknown” Raptors employees were named as defendants in the Knicks’ lawsuit.

In a lawsuit filed in October 2023, the Raptors called the Knicks’ accusations “baseless” and a “public relations stunt” while asking Silver to intervene. The Raptors also argued that “the alleged ‘data theft’ involved little more than publicly available information collected through public sources that all NBA members had easy access to.”

In a court filing a month later, the Knicks argued that Silver had a conflict of interest because of Tanenbaum’s position as chairman of the board of governors.

“Tanenbaum is Silver’s boss and has control over and significant influence over Silver’s continued employment and compensation,” the Knicks argued at the time. Additionally, the Knicks pointed to the friendship between Silver and Tanenbaum.

“Among other things, Tanenbaum was described as ‘a close ally of Commissioner Adam Silver,’” the Knicks wrote. “Silver himself described Tanenbaum as ‘not only my boss as chairman of the board, but he is a role model in my life.’ If Silver were to preside over the immediate dispute, he would be deciding the matter on behalf of his boss and ally.

The Knicks also noted the limitations of Silver’s authority to award fines under Article 24 of the NBA Constitution, which states that the commissioner cannot impose a fine greater than $10 million. The Knicks also noted that the league’s bylaws do not authorize Silver to award attorney fees in disputes between two teams.

“As the Knicks intend to prove at trial, damages exceed $10 million,” the Knicks wrote in the lawsuit, adding that they also intend to seek attorneys’ fees.

The lawsuit itself is a rare case of one professional team suing another. The only other case ESPN’s research could uncover involving two NBA teams was a 1977 legal battle between the Knicks and Nets over the Nets’ attempts to move from Long Island to New Jersey.

The lawsuit between the Knicks and Raptors appears to be the first between two NBA teams to focus on basketball-related information.