Knicks’ legal dispute with Raptors sent back to arbitration

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The dispute between the New York Knicks and Toronto Raptors alleging a former Knicks employee took thousands of confidential files with him to Toronto is heading to a new stage.

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U.S. District Judge Jessica Clarke ruled Friday that NBA commissioner Adam Silver should step in and settle the matter, rankling the Knicks, ESPN’s Baxter Holmes reported.

A spokesperson for MSG Sports, which owns the Knicks, told ESPN the team is “continuing to evaluate” its legal options.

The Knicks sued the Raptors last August, alleging that Ikechukwu Azotam, a Knicks employee from 2020 to 2023, had taken the files with him in a bid to give Toronto a competitive advantage against its Atlantic Division rival.

Toronto had initially asked Silver to settle the dispute, but New York fought that idea throughout the process, saying Silver could not do that fairly because Raptors co-owner Larry Tanenbaum is the chair of the NBA’s board of governors.

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The Knicks, who sought more than $10 million in damages in the lawsuit, told ESPN after the decision Friday: “We (allegedly) were the victim of a theft of proprietary and confidential files in a clear violation of criminal and civil law,” the statement said. “We don’t think it’s appropriate for the commissioner of the NBA to rule on a matter involving his boss, the chairman of the NBA, and his team.” They vowed to continue to look into further legal options, according to ESPN.

The Raptors told ESPN in a statement: “The Raptors and (Raptors owner Maple Leaf Sports and Entertainment) are pleased that the court agreed this should be resolved by the NBA, which we have maintained is the correct forum for disputes of this nature. We hope this brings this matter closer to a resolution.”

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If Silver finds that the case can’t be arbitrated, the court has to be notified within seven days of that decision, according to the filing. All parties have until Dec. 13 to provide an update to the court about where the arbitration process stands.

“The truth or falsity of that allegation is not the question at this stage,” Clarke wrote in Friday’s filing. “Instead, the question before the court is where this case should proceed: Either in this court or in arbitration before the commissioner of the National Basketball Association.”

The judge added that the answer to that question hinged on the language in the NBA’s constitution, which gives Silver significant powers over these types of disputes, according to bylaw D in article 24.

The Knicks had also alleged Azotam took the files at the request of the Raptors. The team also named Toronto head coach Darko Rajakovic, player development coach Noah Lewis and 10 “unknown” Raptors employees as defendants in the lawsuit.

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