A New York judge ruled Friday that NBA Commissioner Adam Silver must 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 over the alleged theft, Toronto asked Silver to step in and help resolve the dispute. The Raptors continued those efforts in court filings in the following months, arguing that the lawsuit “did not need to waste judicial resources” given Silver’s authority to adjudicate it.
The Knicks, who were seeking more than $10 million in damages in the suit, rejected the Raptors’ request, arguing that Silver should not be involved in part because of his close relationship with Raptors Gov. Larry Tanenbaum, who is also chairman of the NBA’s board of governors.
On Friday, Judge Jessica Clarke intervened and sided with the Raptors, who are now sending the matter to Silver, according to a court filing obtained by KeynoteUSA.
For now, the case, which had been ongoing in the U.S. District Court for the Southern District of Lower Manhattan, is on hold as the parties seek a possible out-of-court resolution.
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If Silver determines the case cannot be arbitrated, the court must 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 on the status of the arbitration process.
“The Raptors and (Raptors owner Maple Leaf Sports & Entertainment) are pleased that the court has agreed that this should be resolved by the NBA, which we have maintained is the proper forum for disputes of this nature,” a Raptors spokesperson said in a statement to KeynoteUSA. “We hope this brings this matter closer to a resolution.”
A spokesman for MSG Sports, which owns the Knicks, said in a statement to KeynoteUSA that the team is “continuing to evaluate our legal options.”
“We were victims of a theft of confidential files and private property in clear violation of criminal and civil law,” the statement states. “We do not believe it is appropriate for the NBA Commissioner to rule on a matter that involves his boss, the NBA President, and his team.”
The NBA declined to comment.
In the initial complaint, the Knicks alleged that the Raptors signed Ikechukwu Azotam, who worked for the Knicks from 2020 to 2023, and directed him to provide a large amount of internal information after the Raptors began recruiting him in the summer of 2023. The Knicks argued that this effort was geared toward giving the Raptors a competitive advantage.
“The truth or falsity of that allegation is not the issue at this time,” Clarke wrote in Friday’s filing. “Instead, the question before the court is where this case should proceed: whether in this court or in arbitration before the Commissioner of the National Basketball Association.”
The judge added that the answer to that question depended on the language of the NBA constitution, which under statute “d” in Article 24, is intended to give Silver broad powers over such disputes.
Specifically, that statute provides that “The Commissioner shall have exclusive, full, complete and final jurisdiction over any dispute involving two (2) or more Members of the Association.”
Based 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 the Court.”
The Knicks alleged that Azotam, who worked for the Knicks as an assistant video coordinator and later as a director of video/analytics/player development assistant, sent the Raptors thousands of confidential files, including game frequency reports, a preparation book for the 2022-23 season, video scouting files, opposition research and more.
The Knicks also alleged that Azotam did so at the request of the Raptors, who they said were trying to “organize, plan and structure the new training and video operations staff,” according to the August 2023 complaint.
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 an October 2023 court filing, the Raptors called the Knicks’ allegations “baseless” and a “public relations stunt” while calling for Silver to intervene. The Raptors also argued that the “alleged ‘data theft’ involved little more than publicly.” available information compiled through public sources that are easily accessible to all members of the NBA.”
In a court filing a month later, the Knicks argued that Silver had a conflict of interest due to Tanenbaum’s position as chairman of the board of governors.
“Tanenbaum is Silver’s boss and exerts significant control and influence over Silver’s employment and salary,” the Knicks argued at the time. Additionally, the Knicks pointed to a friendship between Silver and Tanenbaum.
“Among other things, Tanenbaum has been 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 a great role model in my life.’ If Silver were presiding over the dispute in question, he would be arbitrating a case for his boss and ally.”
The Knicks also pointed out the limits of Silver’s power over monetary sanctions under Article 24 of the NBA constitution, which states that the commissioner cannot impose a sanction of more than $10 million. The Knicks also noted that the league constitution does not authorize Silver to award legal fees in disputes between two teams.
“As the Knicks intend to demonstrate at trial, damages exceed $10 million,” the Knicks said in the filing, adding that they also intended to seek attorneys’ fees.
The lawsuit itself marks a rare instance of one professional team suing another. The only other case KeynoteUSA’s investigation was able to uncover involving two NBA teams was a legal battle between the Knicks and Nets in 1977 over the Nets’ attempts to move from Long Island to New Jersey.
The lawsuit between the Knicks and Raptors appears to be the first lawsuit between two NBA teams that focuses on basketball-related information.
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