He specifically mentioned the apparent mistake in drafting Frank Ntilikina with the eighth pick over Dennis Smith Jr., who went one spot later to the Dallas Mavericks.
As Martin said, "the commissioner wasn't even off the stage" before Dallas made its pick.
The 39-year-old, who spent two seasons with the Knicks from 2012-14, believes Jackson needs to go for the team "to be competitive."
Jackson took over the team's front office in 2014, but the squad has just an 80-166 record over the past three years.
Martin retired after the 2014-15 season, but he was back in New York this weekend to compete in the Big3 league in Brooklyn. He is a captain for Trilogy, on a squad with Al Harrington and Rashad McCants, among others.