PURCHASE, N.Y. -- The last-place New York Knicks extended the contract of coach Don Chaney, who has an 11-27 record since taking over in November following the resignation of Jeff Van Gundy.

"Yeah, it's true," Chaney said as he left practice at SUNY-Purchase.

Team president Scott Layden and Madison Square Garden executive Steve Mills informed the team of the move before their morning shootaround. Chaney said a news conference would be held before the Knicks played the Milwaukee Bucks.

Chaney's extension was for one season, Knicks guard Allan Houston said. Chaney said he would answer questions about the extension later in the day.

The decision to extend Chaney's contract came as a major surprise.

The team has struggled to such a degree since Van Gundy's departure that Chaney has the worst winning percentage (29 percent) of any coach in franchise history.

Chaney met with owner James Dolan of Cablevision following the Knicks' loss to San Antonio on Sunday, their seventh defeat in eight games, and it was widely assumed Chaney's days were numbered.

New York is 15 games under .500, with a worse record (21-36) than every team in the Eastern Conference except Chicago and Cleveland. Barring a complete turnaround, the Knicks will miss the playoffs for the first time in 15 years.

"We were all a little surprised," Houston said. "I had an idea just because I knew that Jim Dolan and Knicks management liked Don as a person, liked his character and how he carries himself.

"It's hard to judge what he's done based upon the situation he was put in," Houston said.

Chaney addressed the team and thanked the players for sticking together during a season that has been worse than anyone on the Knicks could have imagined.

Van Gundy resigned unexpectedly when the team had a 10-9 record, and the Knicks have been plummeting since. They have blown double-digit leads in 12 games, stopped playing the kind of intense defense that has been their trademark and have all but admitted they have almost no chance of reaching the postseason.

Injuries have taken a toll, too. Marcus Camby is out for the season with a torn hip muscle after playing a career-low 29 games, and opponents have taken advantage of New York's lack of size and quickness.

Layden has been under criticism for assembling an underachieving team with a league-high payroll of $85.1 million, and Chaney has been targeted for his laid-back style -- especially by those who believe the team needed to be pushed.

"I don't think it's fair to even compare Jeff and Don," Houston said. "Don was thrown into a situation where he took over a team that had all the tendencies and the mindset of someone else. Now he'll get an opportunity to establish his own."

With 25 games left, the Knicks would need to go 20-5 to finish 41-41. But that seems completely unlikely given that the Knicks went 2-10 in February while being booed regularly in their own arena.

Layden has just returned from a trip to China to scout Yao Ming, the 7-foot-6 center who is expected to be a high lottery pick. He was not available for comment.

The 54-year-old Chaney was the NBA's Coach of the Year in 1990-91 with the Houston Rockets and is in his 22nd season as an assistant or head coach. In nine seasons with the Clippers, Rockets, Pistons and Knicks, Chaney has a career record of 276-418.

"Let's give the coach the benefit of the doubt," guard Mark Jackson said. "It's been a tough ride for all of us, but he's a quality, quality guy and it's good to see good things happen to good people."

Magic owners decide not to sell franchise

ORLANDO, Fla. -- The Magic are being pulled off the market, less than two months after the team was put up for sale.

"We have reconsidered and had a change of heart ...," owner Rich DeVos said in a statement Tuesday. "You might ask, what happened? Well, we just changed our mind. It's that simple."

In January, DeVos announced he was selling the Magic because he was tired of losing $10 million a year and battling local officials over the need for a new arena. The 76-year-old DeVos also said the sale was part of his estate planning.

But the past few weeks have been "eye-opening," DeVos said. "Talking about selling and the reality of selling are two very different things."

During the seven weeks the team was on the market, there were numerous high-profile names floated as possible buyers.

Former New York Knicks president Dave Checketts was mentioned, as was former NFL running back Calvin Hill -- the father of injured Magic forward Grant Hill. Local time-share tycoon David Siegel was one of the first people to profess interest.

The DeVos family paid $85 million for the Magic in 1991 and that price also included a minor-league baseball team, the Orlando Rays. A year ago, Forbes magazine estimated the worth of the Magic at $165 million.

Despite Tuesday's announcement, Magic officials took pains to point out that the business issues facing the team -- such as replacing the 13-year-old T.D. Waterhouse Centre -- haven't gone away.

"They will have to be dealt with by this ownership with this community at some time," said Bob Vander Weide, the team's president and DeVos' son-in-law. "When is that? I don't know the answer, but clearly now is not the time."

Magic officials have long complained about the downtown arena, which is owned by the city. The 17,248-seat venue doesn't have many moneymaking amenities, such as club seats or midlevel luxury boxes.

The Magic are seeking a new arena, estimated to cost $250 million. But city and Orange County leaders have repeatedly said there's no money in the public coffers to help with such a project.-- From wire reports