SEC filing shows Brown got $18.5 million from Knicks
By Chris Sheridan
ESPN Insider

Larry Brown agreed to a settlement of $18.5 million after being fired as coach of the New York Knicks, meaning he accepted less than half of what was owed to him for the four remaining years of his contract.

The payment was disclosed in a Securities and Exchange Commission filing made Wednesday by Cablevision, the Knicks' corporate owner, which was reviewed by ESPN.com.

Neither the Knicks nor Brown have commented on his settlement in keeping with the terms of the agreement set forth by NBA commissioner David Stern, who settled the dispute after conducting two days of arbitration hearings in New York.

Brown's attorneys had asked for $53 million -- the $41 million remaining on Brown's contract and an additional $12 million in damages. The Knicks contended they owed Brown nothing because he breached his contract by, among other things, violating team media guidelines and undermining the authority of team president Isiah Thomas.

Under a contractual clause inserted at Brown's insistence when he signed the five-year, $50 million contract in the summer of 2005, Stern was the designated arbitrator for any contractual dispute -- and his decision would have been final. The commissioner brokered the settlement agreement on the eve of the NBA season opener.

Brown, now living in Philadelphia, has not commented publicly since last spring when he told a group of Knicks beat writers he was a "dead man walking." His firing was announced roughly a month later.

Spurs coach Gregg Popovich, a close friend of Brown's, told writers in New York earlier this week that he was concerned over the precedent Brown's settlement might set -- even though Stern, in announcing the decision, specified that it would not be precedent-setting.

"I don't know what 'arrangement' means," Popovich said. "The statement also says it's not a precedent. I guess I hope it's true. I hope it's not a precedent. Just because someone said it's not a precedent, I don't know if legally it means it's not a precedent. It's a little worrisome.

"What exactly does it mean for everybody else? I'm surprised it hasn't been talked about more. I don't know anything official going on, but everyone's talked about it and concerned about it," Popovich said.

thats it?

Just enough so nobody on either side will be happy.

Although, $28.5M to put up with this circus for a year isn't bad bank.

is this the final payment or are there payments over a period of years? i guess we'll know in a future filing but for this year, he's getting $18.5 mil.

wow..even the 30 mil wasn't right. looks like larry settled cause he knew he knowingly broke the contract.

Posted by SugarRayRichardson:

Until I see tthis filing and subsequent annual filings I think ESPN could be jumping the gun as they have been known to do in the past.

it's based on paperwork filed with the SEC. it's legit. only thing we don't know is whether there will be more.

Posted by crzymdups:

Posted by SugarRayRichardson:

Until I see tthis filing and subsequent annual filings I think ESPN could be jumping the gun as they have been known to do in the past.

it's based on paperwork filed with the SEC. it's legit. only thing we don't know is whether there will be more.

I already looked at it. Thats what I was saying. I didnt know if there would be furthur subsequent filings. This is what todays filing said.

n June 22, 2006, the New York Knicks ("Knicks"), a division of Madison Square Garden, L.P., notified the then-head coach of the Knicks, Larry Brown, that his employment had been terminated with cause pursuant to his employment agreement with the Knicks. Mr. Brown disputed the Knicks' right to terminate his employment with cause and the matter was referred to the Commissioner of the

NBA, who had the authority under the agreement to resolve all disputes. On October 30, 2006, the parties reached a settlement of this matter under which the Knicks agreed to pay Mr. Brown $18.5 million of the disputed amount in connection with his employment agreement, which amount has been accrued for in the accompanying financial statements as of September 30, 2006.

I read this as lump sum- but I am not an expert

This is a bad precedent that has been set for NBA head coaches.

^^^^I think it is a bad precedent if coaches can deliberately sabotage their own team and break numerous rules in their contract and still get paid in full.

Don't you think so as well?

oohah