Managing Director, Peter Jackson, said Knights was the outstanding applicant following an extensive interview process and that he had accepted a three-year deal.
""I congratulate Matthew on his appointment and the board is very comfortable he has the necessary skills to get this Club back playing finals’ football,"" Jackson said.
""We had some excellent candidates for the position and each of those that made it to the final stages would have brought something to this football Club.
""However Matthew became more and more impressive as the interview process went on and we are very excited about the Club's future with him as coach.""
Knights has coached the Bendigo Bombers for the past three years and last year joined the Essendon Football Club football department as development coach.
""This has been a thorough and diligent process and we make no apologies for the time it has taken to reach this decision. Our members and supporters would expect us to take the time required to get this decision right,"" Jackson said.
Knights, 36, played 279 games with Richmond and won the club’s best and fairest in 1990 and 1992. He captained Richmond for 101 games and was an All Australian in 1998.
""Essendon has a good young list and a very exciting future. I feel honoured to have been given this opportunity at a Club that has such a fantastic history,"" Knights said.
