MSG shareholders suing Knicks owner James Dolan for 'excessive' pay

The lawsuit says Dolan spends too much time with his band

5/1/2019, 11:52 PM
Dec 21, 2017; New York, NY, USA; New York Knicks executive chairman James Dolan watches during the second quarter against the Boston Celtics at Madison Square Garden. Mandatory Credit: Brad Penner-USA TODAY Sports / Brad Penner
Dec 21, 2017; New York, NY, USA; New York Knicks executive chairman James Dolan watches during the second quarter against the Boston Celtics at Madison Square Garden. Mandatory Credit: Brad Penner-USA TODAY Sports / Brad Penner

Some bad news surrounds Knicks owner James Dolan, as Madison Square Garden shareholders are suing him for spending too much time with his band while being overpaid. 

According to the Pitchfork's Marc Hogan, the lawsuit claims that Dolan "works at MSG only part time," and makes a large amount more than other in the industry. Instead, Dolan has been putting most of his energy and time into his band, JD & the Straight Shot, whether it's recording or touring. 

There are reportedly company records that state Dolan has made $75.6 million over the past three years, and the shareholders compiled their own research that shows he is vastly overpaid. 

"By comparison, MSG's peer companies paid their CEOs an average of $17 million for the same three-year period," the claim says. "The highest-paid peer CEO received $32.4 million, over $43 million less than James."

MSG released a statement to the Agenda, which first reported the lawsuit, that stated, "This alwsuit amounts to nothing more than corporate harassment. The company stands by its policies and practices." The Dolan family gave a statement to the publication, saying that law firms are simply trying to troll them. It's worth noting that several members of the family are MSG board members. 

"These [law] firms represent the worst in our legal system," the statement read. "They manufacture complaints and then advertise for clients, also known as trolling. Members of these firms tried to the same tactic at Cablevision [where Dolan previously served as CEO]. They lost and will lose again."

As for Dolan's band, its popularity seems to be growing as the lawsuit states its tour schedule increased in 2017 compared to the prior year. 

"In 2017, for example, the band performed 50 times in six countries and 41 U.S. cities, an increase from the 32 shows it performed in 2016. In late 2017, the band released its sixth album, and is in the process of recording a seventh."

Dolan hasn't been the greatest face of the Knicks over the years, and that continued this season when the 63-year-old banned a fan from The Garden after he told the MSG CEO to sell the team. And with a very important free agency period for the franchise coming up, more bad press regarding Dolan isn't the best look.

Popular in the Community