New York Knicks Lawsuit: James Dolan Resigns From NBA Board of Governors Committees, Team Seeks $10 Million in Damages

In pursuit of $10 million in damages against the Toronto Raptors franchise, New York Knicks owner James Dolan resigned from his spots on several NBA Board of Governors committees.

New York Knicks owner and Madison Square Garden Company chairman James Dolan has made himself a different kind of free agent

Shortly after Baxter Holmes of ESPN reported that the Knicks were seeking over $10 million in damages stemming from their lawsuit against the Toronto Raptors, another ESPN report, this from Adrian Wojnarowski, says Dolan resigned from his positions on several NBA Board of Governor committees. 

Dolan will also no longer attend Board of Governor meetings, as Wojnarowski's report said that those duties have been passed to Knicks general counsel Jamaal Lesane, who will serve as a proxy.

"Given all that has occurred lately, I have come to the conclusion that the NBA neither needs nor wants my opinion," Dolan wrote in a July memo obtained by Wojnarowski. "My hope is that the Knicks will be treated equally and fairly as all other NBA teams. I am very busy with all my duties at (the) MSG family of companies. I need to apply my time where I can be most productive."

Knicks owner James Dolan / USA TODAY SPORTS

The Knicks' lawsuit against Toronto and its parent company Maple Leaf Sports & Entertainment stems from the alleged theft of "proprietary information." Former team employee Ike Azotam was listed among the defendants as well as current Raptors head coach Darko Rajaković, with the former alleged to have "funnel(ed) proprietary information to the Raptors to help them organize, plan, and structure the new coaching and video operations staff."

A Monday court filing reported by Holmes not only listed the sought damages but also requested that NBA commissioner Adam Silver be left out of the arbitration process, citing a conflict of interest in the form of both the professional and personal relationships he holds with MLSE chairman Larry Tanenbaum.

Toronto, for its part, has mostly disregarded the Knicks' claims, as a response from MLSE attorneys labeled the lawsuit as "baseless" and a "public relations stunt." 

A statement from an MSG spokesperson, however, divulged to All Knicks that they have no intentions of backing down.

“We were the victim of a theft of proprietary and confidential files, which is a clear violation of criminal and civil law," the spokesperson said. "We remain confident that the Court will decide in our favor in this matter.”

Tampa-based attorney and trade secrets expert Kevin Paule also told All Knicks in August that the nature of the alleged stolen items could lead to wider consequences for the Raptors.

"Not only could this be a civil matter, but potentially, if there's some sort of hacking or unauthorized access, maybe it's something where law enforcement gets involved," Paule said. "I'm not trying to speculate but it may be a matter where separate from the lawsuits and separate from any sort of criminal issue, the National Basketball Association may decide that this is conduct prohibited by the rules governing the league, and perhaps there's some sort of punishment for the Toronto Raptors organization."

The Knicks and Raptors do battle on a different kind of court on four occasions this season, the first coming on Dec. 1 in Ontario. In the meantime, New York returns to action on Friday against the Miami Heat (7:30 p.m. ET, MSG/ESPN).