Walsh to leave Knicks, turnaround unfinished

By Howard Beck
June 3, 2011

NEW YORK — Donnie Walsh, who revived a flagging, dysfunctional Knicks franchise and repeatedly stated his commitment to finish the job, is instead leaving his post as team president at the end of the month.

The stunning decision, which caught even some of Walsh’s friends by surprise, was announced by James L. Dolan, the Madison Square Garden chairman, in a statement Friday morning. He characterized the parting as mutual and said Walsh would remain as a consultant for the 2011-12 season.

Walsh, 70, had been negotiating a new contract for the past several weeks. He was seeking a guarantee of autonomy on basketball decisions and a minimum of interference from Dolan and his associates, including Isiah Thomas, the former team president.

Some of Walsh’s friends have warned for some time that he was unlikely to return without such assurances, but there was a strong belief, both inside and outside the organization, that an agreement would be reached on a new two-year deal. Even in recent days, all signs were that Walsh would stay on as team president.

In a conference call Friday afternoon, Walsh said that he wanted to continue, but only for another year, possibly two. He indicated that Dolan wanted at least a two-year commitment.

“I don’t know that I can commit to that, because I’m getting older,” Walsh said, invoking his age for the first time during his Knicks tenure. “I do this job only one way and that is full forward ahead. It’s 24-7 with me, and I think that’s what it takes, to be honest.”

Walsh said his health is good, but he added, “It took me a lot of energy the last three years to do this. I’m running out of energy.”

The lack of guaranteed autonomy was one of several reservations Walsh had about returning, according to a person with ties to the team.

Dolan also wanted Walsh to take a 40 percent pay cut, which Walsh considered an affront but not a deal-breaker, said the person, who asked for anonymity because he was not authorized to discuss private negotiations. Walsh also wanted to hire and groom his own successor, but Dolan rejected his list of candidates, the person said. Mark Jackson, the former Knicks point guard, was among Walsh’s top choices.

Dolan said the decision followed a long series of discussions regarding Walsh’s future. Glen Grunwald, the Knicks’ senior vice president for basketball operations, has been named the interim general manager, starting July 1. Barring a labor stoppage, Grunwald will be in charge when free agency opens.

Walsh has been slowed physically by operations to his hip and neck. But he said for months that he had no intention of retiring soon and that he wanted to complete the job of rebuilding the team. Walsh spent two years purging the roster of bad contracts, then signed Amar’e Stoudemire as a free agent last summer, providing an instant dose of credibility to a long-suffering franchise.

But Walsh had his authority undermined in February, when Dolan pushed through a trade for Carmelo Anthony over Walsh’s objections. Walsh had been carefully negotiating a deal for Anthony but was opposed to giving up as many players and draft picks as Dolan ultimately did in the deal with Denver.

On Friday, though, Walsh repeatedly denied that he had any concerns about his autonomy and again played down Dolan’s role in the Anthony trade.

“I tried to say this back at the time: I don’t understand why people make a big deal out of an owner getting involved in a negotiation,” Walsh said. “It happens all the time.” He said that Dolan left the final decision to him, saying, “I made the decision to do the trade.”

Walsh’s departure leaves the status of many others in doubt, starting with Coach Mike D’Antoni. Although D’Antoni has one year left on his contract, he was Walsh’s choice in 2008, when the Knicks began rebuilding in the wake of the disastrous Thomas era. The new team president could decide D’Antoni’s future.

Although Thomas remains close to Dolan and wants to return to the franchise, the belief is that Thomas will not be rehired but will remain an influential voice from the outside.

Several other front-office personnel have contracts expiring June 30, including John Gabriel, the director of pro scouting and free agency; Misho Ostarcevic, the director of player personnel; Mark Warkentien, the director of pro player personnel; Rodney Heard, the director of East Coast scouting; and Mark Hughes, the director of West Coast scouting.

Dolan praised Walsh’s work in his statement.

”In a relatively short time with the Knicks, Donnie made a tremendous impact, which will be felt for many years to come,” he said. “We thank Donnie for his leadership, hard work and many contributions to the revitalization of the team.”

Dolan added, “With some of the N.B.A.’s premier players, an outstanding coach and one of the league’s most passionate and loyal fan bases, we are extremely confident about the future of the Knicks franchise.”

Walsh arrived in 2008 and immediately started ridding the Knicks of the onerous contracts the team had saddled itself with under Thomas. The team had hoped to lure the first-tier free agents LeBron James or Dwyane Wade last summer, but did score big with the signing of Stoudemire.

Acquiring Anthony and Chauncey Billups at the trade deadline, however, required sending Timofey Mozgov, Wilson Chandler, Danilo Gallinari, Raymond Felton, Anthony Randolph, Eddy Curry and his expiring contract, a 2014 first-round pick, two second-round picks and $3 million to the Nuggets.

Walsh said he would move back to his Indianapolis home but keep his Manhattan apartment during his year of consulting.

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