Transactions listed are from July 1, 1978 to June 30, 1979

• September 29, 1978

  Signed Marvin Webster as a veteran free agent.

• October 4, 1978

  Traded Lonnie Shelton and a 1979 1st round draft pick (Vinnie Johnson was later selected) to the Seattle SuperSonics for a 1981 1st round draft pick (Steve Johnson was later selected). This exchange was arranged as compensation for New York signing veteran free agent Marvin Webster on September 29, 1978.

• October 30, 1978

  Waived Butch Beard.

• November 10, 1978

  Fired Willis Reed as Head Coach.

  Hired Red Holzman as Head Coach.

• November 14, 1978

  Waived Greg Bunch.

• December 15, 1978

  Jim McMillian signed as a veteran free agent with the Portland Trail Blazers; received a 1979 2nd round draft pick (Kim Goetz was later selected) as compensation.

• January 5, 1979

  Traded Spencer Haywood to the New Orleans Jazz for Joe Meriweather.

• February 12, 1979

  Traded Bob McAdoo to the Boston Celtics for Tom Barker, a 1979 1st round draft pick (Bill Cartwright was later selected), a 1979 1st round draft pick (Larry Demic was later selected) and a 1979 1st round draft pick (Sly Williams was later selected).

• February 20, 1979

  Signed Ron Behagen as a free agent.

• March 2, 1979

  Waived Ron Behagen.

• June 25, 1979

  Drafted Bill Cartwright in the 1st round (3rd pick) of the 1979 NBA Draft.

  Drafted Larry Demic in the 1st round (9th pick) of the 1979 NBA Draft.

  Drafted Sly Williams in the 1st round (21st pick) of the 1979 NBA Draft.

  Drafted Reggie Carter in the 2nd round (27th pick) of the 1979 NBA Draft.

  Drafted Kim Goetz in the 2nd round (34th pick) of the 1979 NBA Draft.

  Drafted Geoff Huston in the 3rd round (50th pick) of the 1979 NBA Draft.

  Drafted Larry Rogers in the 4th round (71st pick) of the 1979 NBA Draft.

  Drafted Johnny Green in the 5th round (94th pick) of the 1979 NBA Draft.

  Drafted Phil Abney in the 6th round (113th pick) of the 1979 NBA Draft.

  Drafted Marc Coleman in the 7th round (134th pick) of the 1979 NBA Draft.

  Drafted Billy Tucker in the 8th round (152nd pick) of the 1979 NBA Draft.

  Drafted Brett Wyatt in the 9th round (172nd pick) of the 1979 NBA Draft.

  Drafted Gordon Thomas in the 10th round (189th pick) of the 1979 NBA Draft.