Steve Mills rejoins Knicks as GM

NEW YORK -- The New York Knicks have reshuffled their front office yet again, announcing Thursday that former executive Steve Mills has rejoined the organization as president and general manager, replacing Glen Grunwald.

Grunwald, who served as GM for two seasons, will be reassigned as an adviser, the team announced.

"I am pleased to be able to welcome Steve back to the Knicks," team owner James Dolan said in a statement. "... We look forward to his leadership and believe he is the right person to help us reach our ultimate goal of winning an NBA championship.

"We are grateful for Glen's many years of valuable service and pleased that he will remain with the organization."

The timing of the announcement comes as a surprise with training camp practices beginning Tuesday.

Mills previously worked with the Knicks for 10 years as president of MSG Sports (Dolan oversees MSG as its executive chairman) and hired Isiah Thomas, who presided over the team during one of its least successful stretches, with the Knicks missing the playoffs in six of their seven seasons on Thomas' watch.

The tumultuous period of Mills' reign included a sexual harassment lawsuit filed by Anucha Browne Sanders. The Knicks' former senior vice president of marketing and business operations successfully sued MSG, as a jury in October 2007 ordered the Knicks to pay her $11.6 million after finding she endured crude insults and unwanted advances from then-coach Thomas.

Mills was demoted by the Knicks in the summer of 2008. Thomas was fired in 2008 as well but remains a confidant of Dolan.

"It is an honor and a privilege to work for such a storied franchise, and I look forward to doing whatever it takes to make the Knicks a successful franchise and a team that fans can be proud of, both now and in the future," said Mills, a longtime sports executive who also worked for the NBA as a senior vice president of basketball and player development.

Grunwald's ouster may lead to more responsibility for Knicks assistant general manager Allan Houston, who is close with Dolan. It is unclear how the move affects director of player personnel Mark Warkentien, who was instrumental in several player acquisitions, including J.R. Smith.

Grunwald's reassignment may negatively affect coach Mike Woodson, who is under contract for this season with a team option for next year. He and Grunwald are close friends, having played college basketball together, alongside Thomas, at Indiana.

ESPN.com's Brian Windhorst contributed to this report.