Per the NY Daily News…

The Daily News has learned that Donnie Walsh considered resigning after Madison Square Garden chairman James Dolan made the controversial move to hire Thomas, but Walsh decided to continue running the team despite his objections to Thomas having a role in the front office.

“Donnie finds this entire thing distasteful,” said one NBA source. “He’s had second thoughts about staying but he wants to finish the job.”

olan’s insistence on giving Thomas the ambiguous title of consultant angered Walsh, who for two years has been trying to hire former St. John’s All-American Chris Mullin as general manager. Dolan has refused to sign off on hiring Mullin and clearly has designs on giving that position to Thomas, who also holds the title of head coach at Florida International University in Miami.

The News reported yesterday that Dolan advised Walsh to hire Thomas as his general manager two weeks ago. When Walsh refused, Dolan decided to make Thomas a consultant, a move that was universally panned by several of Dolan’s top executives, according to sources.

Besides Walsh and Knicks head coach Mike D’Antoni being against the move, Garden vice chairman Hank Ratner and Garden president Scott O’Neil voiced their displeasure but were overruled by Dolan, sources said.

As I wrote last week, Thomas’s GM talents are limited to college scouting and the draft. He performed pretty well in that area during his tenure as Knicks GM, but was a disaster in all other areas of the job. He was regularly fleeced in trades and was accused of sexually harassing a woman who worked for him.

To say that Dolan’s hiring of Thomas has been ‘universally panned’ is an understatement. Why the owner would bring Thomas back after such a terrible first stint is perplexing indeed.

Maybe the NBA will step in and save Dolan from himself. The league is looking into the details of Zeke’s deal, which may not be legal under the league’s rules, given his current job as head coach at FIU.