Donnie Walsh served as the New York Knicks’ president of basketball operations for nearly three years. During that time, he made countless moves, but there is one he will never forget.
Walsh himself points to trading away the Knicks’ 2012 first-round pick, a decision that would later haunt the franchise. According to ESPN, had the pick not been traded, the team “might have possessed enough assets” to acquire NBA superstar Carmelo Anthony before the 2010-11 season.
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Agony over the 2010 T-Mac deal
When Walsh took over as the Knicks‘ president of basketball operations in April 2008, it quickly became clear that building lasting success would require financially driven moves. Clearing salary was crucial after years of contract mismanagement. Walsh began by moving players like Jamal Crawford, Mardy Collins and Zach Randolph to create flexibility.
By February 2010, another chance to clear cap space emerged. Tracy McGrady of the Houston Rockets became available. To acquire the veteran scorer Walsh sent the Knicks’ 2012 first-round pick, the right to swap 2011 first-round selections, and Jared Jeffries and Jordan Hill to Houston.
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The trade provided immediate cap relief, but Walsh later admitted he agonized over the assets surrendered — especially the 2012 pick.
“I didn’t like it when I did it. I don’t like doing financial trades. They’re not basketball trades,”explained Walsh, per ESPN. “You always want to keep first-round picks. The ’12 pick I didn’t like doing. I remember the night before we did it, thinking, ‘I don’t like doing this, but we’re going to do it.’ And I’ll second-guess myself forever on that.”
The Knicks’ pursuit of Anthony initially fell flat
The NBA runs on what-ifs. Walsh felt it firsthand just months after the McGrady deal, when Denver’s Anthony — a multiple All-Star — hit the market in the 2010 offseason.
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With Anthony still under contract, the Nuggets had the leverage to demand a hefty return. According to ESPN, they did just that, seeking a package to jump-start a full rebuild: a large expiring deal to clear cap space, a promising young player and at least one first-round pick.
Meanwhile, the Knicks, eager to land Anthony, could meet only two-thirds of those demands.
They had Eddy Curry’s massive expiring deal and a roster full of young talent, including Anthony Randolph, Danilo Gallinari, Wilson Chandler and Toney Douglas. What they didn’t have, however, was that first-round pick, as the crucial asset had already been shipped to Houston in the McGrady trade, courtesy of Walsh. Furthermore, the franchise from New York City wasn’t allowed to trade its 2011 and 2013 draft picks because of league regulations.
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While the absence of that key asset ultimately played a big part in why the Knicks and Nuggets couldn’t reach common ground in their Anthony negotiations, there was still a silver lining.
The cap space created by Walsh’s moves helped land Amar’e Stoudemire and Raymond Felton, instant upgrades who gave the team a jolt. Moreover, Anthony arrived in February 2011 in a three-team blockbuster trade.
As for the 2012 first-round pick Walsh gave up? The Rockets used it on Royce White out of Iowa State — a player only hardcore NBA fans will remember given his underwhelming three-game stint in the league.
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This story was originally reported by Basketball Network on Sep 20, 2025, where it first appeared in the Old School section. Add Basketball Network as a Preferred Source by clicking here.