06/03/2011 04:04 pm ET Updated Aug 03, 2011

Donnie Walsh Leaves Knicks: General Manager Parts Ways With Owner James Dolan

Donnie Walsh won't be back as the Knicks general manager next year.

The well respected basketball guru retooled an underperforming roster and helped get the Knicks into the playoffs last season. But Walsh reportedly was not going to sign a contract extension without having complete control over who played for the Knicks.

From the Sporting News:

New York Knicks president/general manager Donnie Walsh, in the wake of being overruled in the Carmelo Anthony trade, wanted full autonomy in basketball decisions. Knicks owner James Dolan was unwilling to give him that.

So, on Friday, the Knicks announced that Walsh had been relieved of his duties and that Glen Grunwald would serve as interim G.M. The Knicks' statement says Walsh, whose contract was set to expire at the end of the month, would remain with the team as a consultant.

The Daily News speculates that Walsh's departure had to do with Dolan's perplexing allegiance to former Knicks general manager and coach Isiah Thomas, whom Walsh replaced.

From the News:

We all know that Donnie Walsh was really doomed from Day One when his eccentric, semi-reclusive and meddling new boss, James Dolan, informed him that he would be retaining Isiah Thomas as a glorified scout.

It was at that moment four years ago that Walsh, a classy and well-respected basketball lifer, should have realized he was being played for a fool.

The 70-year-old Walsh also said his age was a factor in his decision to walk away.

“I don’t know that I can commit to that, because I’m getting older,” Walsh said. “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.”

The New York Times cites an anonymous source who claims Dolan also wanted Walsh to take a 40 percent pay cut.