"It's not necessarily a lifetime ban," Dolan said on The Michael Kay Show on ESPN New York 98.7 FM. "We need to keep the Garden a place that's comfortable and safe."
Oakley, 53, is a former Knicks player. He was arrested and charged with three counts of assault following an altercation near Dolan at MSG on Wednesday night.
The incident occurred during a stoppage in play as Kristaps Porzingis was shooting free throws in the first quarter against the visiting LA Clippers. A police source told ESPN that Oakley had purchased a seat a few rows behind Dolan and was directing comments at the Knicks owner, who eventually had security escort Oakley from the arena.
"Yes, I understand that he was a big star and a Knick, etc., but that doesn't excuse people from that kind of behavior," Dolan said.
"It is very clear to us that Charles Oakley came to the Garden with an agenda."