Oakley was arrested and charged with five misdemeanors -- including two for assault -- in the incident in which security removed from Madison Square Garden. The incident stemmed from a longstanding dispute Oakley has with Knicks owner James Dolan.
Oakley was physically removed by arena security early in the Feb. 8 contest. Oakley was seen on video striking multiple security staffers in the ensuing altercation.
Assistant district attorney Ryan Lipes offered an adjournment that would lead to a dismissal if Oakley were to stay out of trouble and comply with an unspecified order of protection. Oakley's attorney, Alex Spiro, declined the offer and asked for a trial.
Trial was set for Aug. 4 by judge Joanne Watters.
Oakley declined to field questions after the appearance in Manhattan Criminal Court, simply saying "it's part of life, it's part of life."
After the incident, Dolan banned Oakley from entering Madison Square Garden before later relenting.
NBA commissioner Adam Silver and Charlotte Hornets owner Michael Jordan -- a former teammate of Oakley with the Chicago Bulls -- met with Dolan and Oakley in hopes of ending the dispute. Dolan extended an offer to Oakley to return to Madison Square Garden but the former power forward declined.
Oakley played 10 seasons with New York from 1988-98 and was a fan favorite. In recent years, he was been highly critical of the organization and that helped ignite the dispute with Dolan.
Oakley averaged 9.7 points and 9.5 rebounds over 19 NBA seasons.