1:12 PM PT -- While Dolan and NYK management are feuding with Lee, it seems the Knicks players and coaches are riding with Spike. Knicks head coach Mike Miller just told reporters they'd like to see the legendary director courtside "every night."
"The idea that Spike Lee is a victim because we have repeatedly asked him to not use our employee entrance and instead use a dedicated VIP entrance -- which is used by every other celebrity who enters The Garden -- is laughable," the team said in a statement.
"He is welcome to come to The Garden anytime via the VIP or general entrance; just not through our employee entrance, which is what he and Jim [Dolan] agreed to last night when they shook hands."
As for Spike ... he says he's done watching the Knicks for the rest of the season ... but will be back for next season.
8:20 AM PT -- Lee is going OFF on the Knicks over Monday night's incident ... explaining to ESPN's "First Take" the team's statement on the situation was BS ... and he didn't make up with Dolan afterward.
“I wasn’t shaking hands. In fact, when he came over to me I didn’t get up right away, I was just sitting in my seat" Lee said.
"I said, 'Mr. Dolan, I’ve been coming for 28 years. Why wasn’t I notified? By email, text, phone.' He says, 'now you know.' Now you know?! It's too late!!!'”
A Knicks spokesperson has said the entrance was not designated for fans -- with sources saying it was supposed to be for media and staffers only.
The good news ... Lee met with Knicks' owner, James Dolan, and the two smoothed things over. And, even better for Lee and the Knicks, THEY ACTUALLY WON THE GAME!
The Knicks have been AWFUL this season -- one of the worst records in the NBA -- but they still manage to draw A-List celebs to their games ... including Chris Rock, Pete Davidson, Kenan Thompson and more.