NEW YORK (NBA.com exclusive) --  The biggest ovations at Madison Square Garden Wednesday night were for a team playing in another borough.

Yes, there were lots of empty seats at the Garden for the game between Indiana and New York, and the fans who were there cheered louder for the video updates of the Yankees' exploits in Game 6 of the World Series than they did for the building's basketball team.

The Garden figures to be abuzz Friday when LeBron James and the Cavaliers come to town, but on this night the Knicks were a big fat dud as they lost to the previously winless Pacers, 101-89, before an announced crowd of 19,273.

"We've got to win Friday," said Knicks coach Mike D'Antoni, whose team dropped to 1-4. "That's the only thing we can think about now. We've already screwed this up. We'll be positive, try to get this thing straight and let's get a win Friday."

Playing for the second time in two nights after Tuesday's loss to Denver, Indiana improved to 1-3.

Danny Granger scored 12 of his team-high 21 points in the second half before fouling out at the 3:38 mark and T.J. Ford picked up the baton for his teammate, scoring eight straight fourth-quarter points after Granger exited.

"It's big," Ford said. "We were on a three-game losing streak. Now we have to put a couple wins together and take it one game at a time and try to get back to .500 and then set another goal to get well above that."

Dahntay Jones, starting for the injured Troy Murphy (back), provided an athletic presence for the Pacers and finished with 19 points and 12 rebounds.

Roy Hibbert added 15 points and 14 boards for Indiana.

The Pacers trailed the Knicks by as many as nine points in the second half but outscored New York 51-33 after the break as New York's offense suddenly went cold.

"I think we got a little more aggressive," said Granger, who was just 3-of-11 for nine points at the break. "I got a little more aggressive in the second half. Dahntay picked it up. Earl [Watson] gave us a big lift. And our defense was a lot better."

With Indiana packing the lane to defend New York's pick and roll, the Knicks managed just 15 points in the fourth quarter and did not score a field goal over the final 9:21.

After scoring 18 points in the first half, David Lee managed just two in the second and finished with 20 points, 19 rebounds and four assists.

"I know they were packing the lane there a little bit," Lee said. "I just felt that from when I was rolling. There were three or four guys in there. We didn't shoot our best from the 3-point line tonight (7-for-26) but that's something that I'm confident is going to be there throughout this year.

"Offensively, those aren't the numbers we're looking to put up in the second half."

"Roy and Solomon [Jones] started to become more aggressive guarding the pick-and-roll," Pacers coach Jim O'Brien said. "They started to get into [Chris] Duhon's face. We started to get our hands on more balls."

Al Harrington scored 10 of his 22 points in the fourth quarter for the Knicks -- all from the charity stripe.

Still, the Knicks had taken just four free throw attempts with nine minutes remaining, an indicator that they're settling too much for the long-range shot.

When Granger fouled out with the Pacers up 91-87, it looked like Indiana might be vulnerable without its leading scorer.

But Ford hit a 17-foot jumper to extend the lead to 93-87. He then added six straight points, four from the stripe, to stretch the lead to 99-89.

"Coach called my play and it was something I needed for my own self," Ford said. "I've been struggling. I haven't been playing the type of basketball that I felt I'm capable of playing. I think this is something that definitely can help me confidence-wise."

"T.J. came off the bench and was outstanding for us," O'Brien said. "We went to him exclusively down the stretch and he produced for us."

Things won't get any easier for the Knicks, who host LeBron and Shaq on Friday with the prospect of dropping to 1-5 with another loss.

The Knicks and their fans hold out hopes of luring James here as a free agent next summer, but right now the product they have to offer is less than appealing.