MSG Chairman Dolan Doles Out $11.5 to Settle Sex Suit

Deal comes days before Anucha Browne Sanders' court hearing for punitive damages

ByABC News
February 19, 2009, 4:17 AM

Dec. 11, 2007 — -- NEW YORK -- Madison Square Garden and New York Knicks coach Isiah Thomas reached an $11.5 million settlement of the sexual harassment case brought by a former team executive.

The deal came Monday as Anucha Browne Sanders was preparing to return to U.S. District Court in Manhattan, where her description of her ordeal with the Knicks exposed the club's tawdry side, from its dysfunctional clubhouse to the sexual exploits of star Stephon Marbury with an intern.

A jury awarded her $11.6 million in punitive damages. This deal replaces that.

"I am extremely pleased that we have reached a settlement," Browne Sanders said in a statement. "The jury's verdict in this case sent a powerful and enduring message that harassment and retaliation at Madison Square Garden will not be tolerated. ... It has been a long journey, but I believe that justice has been done."

The case was supposed to resume this week before U.S. District Judge Gerard E. Lynch, who was set to decide how much Browne Sanders was owed in compensatory damages, a payout that usually involves lost wages and future loss of income. The Knicks also faced the possibility they might be ordered to pay what was likely to be millions of dollars in legal fees.

By settling, the Knicks avoided paying her legal fees, while Brown Sanders gets her money faster and avoids the possibility of having her award reduced on appeal.

Although Browne Sanders had demanded the right to resume working for the Knicks, one of her lawyers, Kevin Mintzer, said she will continue working at the University of Buffalo as an associate athletic director and senior woman administrator.

Isiah Thomas maintains his innocence, but his employer decided to settle.

"As I have said before, I am completely innocent," Thomas said. "This decision doesn't change that. However, this is the best course for Madison Square Garden, and I fully support it."

Because the jury was unable to reach a verdict on one of the accusations against Thomas, the possibility of another trial loomed. It would have brought with it another wave of negative publicity about the team and the off-court escapades that made the first trial a feeding frenzy for those interested in the inner workings of one of the NBA's most storied franchises.