New York Knicks Seek $10 Million in Damages from Toronto Raptors in Lawsuit Over Stolen Confidential Files

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20/11/2023 23h26

In a recent court filing, the New York Knicks revealed that they are seeking more than $10 million in damages from the Toronto Raptors as part of an ongoing lawsuit. The Knicks allege that thousands of confidential files were stolen by the Raptors, and they argue that NBA commissioner Adam Silver should not arbitrate the dispute due to his close relationship with Raptors governor Larry Tanenbaum.

The Knicks' response, obtained by ESPN, came after the Raptors' motion to dismiss the initial complaint and have Silver arbitrate the case.

In their filing, the Knicks raised concerns regarding Tanenbaum's position as the chairman of the NBA's board of governors, suggesting it would create a conflict of interest. They stated that Tanenbaum serves as Silver's boss, holds influence over his employment and salary, and the two share a friendship.

The Raptors have chosen not to comment on the matter.

This filing marks the first time the Knicks have specified potential monetary damages since their initial complaint was filed in August at the U.S. District Court in Manhattan.

According to the complaint, former Knicks employee Ikechukwu Azotam, who worked for the team from 2020 to 2023, is accused of sending confidential files, including play frequency reports, a prep book for the 2022-23 season, video scouting files, and opposition research to the Raptors after they began recruiting him in the summer of 2023.

The Knicks also allege that Azotam violated a confidentiality clause in an employment agreement and claim that members of the Raptors were aware and benefited from his actions.

Additionally, the Knicks allege that the Raptors conspired to use Azotam's insider access to assist in the organization, planning, and structuring of their coaching and video operations staff.

The lawsuit lists Raptors coach Darko Rajaković, player development coach Noah Lewis, and 10 "unknown" Raptors employees as defendants as well.

Raptors president Masai Ujiri addressed the lawsuit during Raptors media day on October 2, calling it a rare occurrence in the NBA.

In their own filing on October 16, the Raptors dismissed the Knicks' lawsuit as "baseless" and a "public relations stunt." They continue to push for Silver to arbitrate the dispute, a request they have made multiple times since August.

The Knicks, however, have strongly objected to Silver adjudicating the matter, arguing that there are no provisions in the NBA constitution addressing the theft of intellectual property or the protection of a team's intellectual property. They believe that this dispute falls under trade secret misappropriation, contract breaches, and tort claims that are typically handled by federal judges.

The Knicks further highlighted the limits on Silver's power for monetary penalties under Article 24 of the NBA's constitution, stating that the commissioner cannot issue a penalty exceeding $10 million. They also pointed out that the league's constitution does not authorize Silver to award legal fees in disputes between teams.

The Knicks concluded their filing by stating their intentions to seek damages exceeding $10 million and to request attorneys' fees.

An MSG spokesperson responded to ESPN's inquiry, stating, "We were the victim of a theft of proprietary and confidential files, which is a clear violation of criminal and civil law, and we remain confident that the Court will decide in our favor in this matter."

The case continues to unfold, and it remains to be seen how the court will rule in this high-stakes legal battle between the New York Knicks and the Toronto Raptors.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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