A U.S. District Court judge granted the Toronto Raptors' motion for arbitration in their ongoing lawsuit with the New York Knicks on Friday. The decision grants the NBA -- and more specifically commissioner Adam Silver -- to arbitrate on the matter, and come to a resolution on the issue in private between both sides.
Per the court ruling by Federal judge Jessica G. L. Clarke :
"The answer hinges on the arbitration clause in NBA Constitution, which purports to give the NBA Commissioner exclusive jurisdiction over any dispute involving two NBA teams. Based on Second Circuit precedent construing similarly broad arbitration clauses, the determination of where this dispute is arbitrable is one for the NBA Commissioner, not the Court."
The Knicks and Raptors have been embroiled in a legal dispute dating back to August 2023, when the Knicks filed a complaint alleging that Raptors video coordinator/player development coach Ike Azotam stole confidential and proprietary information from the Knicks prior leaving for Toronto. Specifically, the Knicks alleged that Toronto "conspired to use Azotam's position as a current Knicks insider to funnel proprietary information to the Raptors to help them organize, plan, and structure the new coaching and video operations staff." The Raptors then filed a motion in October to dismiss the lawsuit, claiming it was a "public relations stunt," and said that the issue was suitable for arbitration by the NBA commissioner, not the court.
In November, the Knicks responded by saying Silver shouldn't be allowed to arbitrate over the matter, calling out his close relationship with Maple Leaf Sports and Entertainment chairman Larry Tanenbaum, while also citing that they were seeking more then $10 million in damages, which is the largest penalty the commissioner is allowed to impose. The Raptors fired back in December, saying they would consider a countersuit for defamation, while calling the Knicks' claims about Silver being too close to Tanenbaum "baseless."
"The attack on the fitness of Commissioner Silver to arbitrate this dispute is premature," Clarke wrote in the ruling. "It is akin to a complaint about the officiating before the game has even started."
Now, it appears Toronto has gotten its way in the matter, and the decision will be on Silver.
"The Raptors and MLSE 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," a Raptors spokesperson said. "We hope this brings this matter closer to a resolution."
