Knicks-Raptors Trade Secrets Case Moved to Arbitration

A nearly year-long case between the New York Knicks and Toronto Raptors has recently been moved to arbitration, perhaps because of the negative press it has brought the NBA.¹ In 2023, the Knicks sued Toronto on the grounds that the Raptors bribed and persuaded a former Knicks employee to join the Raptors organization.² The Knicks allege that this employee then shared private secrets and information regarding the Knicks organization to the Raptors.³ As the NBA attempts to promote its image as an organized and clean league, the settlement could still have major implications.

The original lawsuit, filed by the Knicks in the U.S. District Court in Manhattan, claims that Ikechukwu Azotam, an employee for New York from 2020-2023 who worked as an assistant video coordinator as well as a player development assistant, provided the Raptors with thousands of confidential files.⁴ These included reports of play frequency, scouting reports, opponent research, and a prep book for the 2022-2023 season.⁵ The Knicks argue Azotam violated a confidentiality clause in his contract, but also added that the Raptors “directed Azotam’s actions and/or knowingly benefited from Azotam’s wrongful acts.”⁶ The Knicks continued 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.”⁷ In a statement the Knicks claimed that “given the clear violation of our employment agreement, criminal and civil law, we were left no choice but to take this action.”⁸

The Raptors, for their part, have not completely denied New York’s claims, but they have vehemently argued that such an agreement with Azotam, if it even occurred, was never condoned or approved by Toronto’s higher-ups. Following the lawsuits filing, the Raptors released a statement detailing how “MLSE and the Toronto Raptors received a letter from [Madison Square Garden] . . . bringing this complaint to our attention. MLSE responded promptly, making clear our intention to conduct an internal investigation and to fully cooperate. MLSE has not been advised that a lawsuit was being filed or has been filed following its correspondence with MSG. The company strongly denies any involvement in the matters alleged. MLSE and the Toronto Raptors will reserve further comment until this matter has been resolved to the satisfaction of both parties.”⁹

Under the NBA’s Constitution, the disagreement can be settled privately by the league commissioner or between the two parties. Perhaps Adam Silver and the NBA may have encouraged a move to arbitration in order to downplay the situation. This being said, the consequences against the raptors, who, by all evidence, appear to be the guilty party, may still be incredibly steep. But for the NBA, no matter which way the case goes, no one wins.

1. Birren, Jeff, Knicks’ Case Against the Raptors Involving Trade Secrets Bounced From Court to Arbitration, Sports Litigation Alert (Jul 26, 2024). ↩︎
2. Holmes, Baxter, Knicks Sue Former Employee, Raptors, Cite Disclosure of ‘Proprietary Information’, ESPN (Aug 21, 2023). ↩︎
3. Id. ↩︎
4. Id. ↩︎
5. Id. ↩︎
6. Id. ↩︎
7. Id. ↩︎
8. Id. ↩︎
9. Id. ↩︎