NBA to Resolve Knicks-Raptors Legal Conflict in July Arbitration Hearing

NEW YORK — The NBA is set to hold an arbitration hearing during the week of July 21 to resolve an ongoing legal dispute between the New York Knicks and the Toronto Raptors, according to a court filing obtained by ESPN on Saturday. This hearing follows nearly two years of litigation initiated by the Knicks, who allege that the Raptors stole confidential information worth over $10 million.

The lawsuit was filed in August 2023, claiming that former Knicks employee Ikechukwu Azotam shared thousands of confidential files with the Raptors after being recruited by them. These files reportedly included play frequency reports, internal analysis, and strategy documents from the upcoming 2022-23 season.

According to the Knicks, their allegations stem from a coordinated effort by the Raptors to gain a competitive edge as they structured their coaching and video operations staff. Azotam, who was an assistant video coordinator and later a director for video/analytics/player development in New York, is accused of being instructed by the Raptors to provide sensitive internal information.

“We remain skeptical of this process,” said a spokesperson for Madison Square Garden Sports. “The NBA has shown no desire to address this blatant theft of proprietary information.” The spokesperson’s statement highlighted their concern regarding NBA Commissioner Adam Silver’s ability to be impartial due to his connections with Raptors owner Larry Tanenbaum, who also chairs the NBA’s board of governors.

In their defense, the Raptors dismissed the Knicks’ claims as “baseless,” describing the lawsuit as a “public relations stunt.” In an October 2023 filing, they argued that the information involved was largely derived from publicly available sources, available to all NBA teams.

The square-off between the Knicks and the Raptors represents a rare legal confrontation between two professional basketball teams. Historical records show that the only other similar instance involved a legal dispute between the Knicks and the New Jersey Nets in 1977 concerning territorial rights.

The New York judge presiding over the case ruled in June 2024 that Commissioner Silver should resolve the dispute, despite the Knicks’ objections. The upcoming arbitration hearing has been positioned as the final step to settling a complex legal saga that has lasted nearly two years.