Madison Square Garden Could Face ‘Disciplinary Action’ On Liquor License After Billionaire Dolan’s Ban On Lawyers

Madison Sq. Garden strike on a novel way to get back at the a lot of plaintiffs’ lawyers included in litigation from the firm and its affiliates: bar them from coming into the “world’s most famed arena” and its relevant venues.

Now the New York Condition Liquor Authority states supplying shelling out clients the heave-ho could possibly not be kosher. These types of bans could guide to MSG struggling with “disciplinary action” in regard to its liquor license, according to an advisory letter issued final 7 days by the state company.

The letter suggests that “as a issue of your license your premises have to remain open to the public” and that “groups or persons can’t be excluded on the basis of conditions that are not directly relevant to the your responsibilities beneath your [liquor] license.” If the authority finds that violations have happened, it may perhaps just take “disciplinary motion against your license,” the letter adds.

MSG has for months reportedly been denying entry at MSG, where by the NBA’s New York Knicks and the NHL’s New York Rangers participate in at Radio Metropolis Tunes Corridor, residence of the Rockettes and their well known Christmas clearly show and at two live performance venues, the Beacon Theater and the Chicago Theater.

In response to inquiries from Forbes, an MSG spokesperson said, “We are self-confident that our coverage is in compliance with all applicable guidelines such as the New York Condition Liquor Authority.”

Madison Square Backyard garden Entertainment, which owns and operates MSG, doesn’t break out alcohol profits in its yearly report, but it created around $110 million from foods, beverage and merchandising at its entertainment venues in the fiscal year that finished June 30. The company posted $1.7 billion in complete revenues for the fiscal yr. The filing notes that any disruption of its capability to provide alcoholic drinks could have a “material detrimental influence on our small business and our outcomes of functions.”

James Dolan, MSGE’s chairman and CEO, is amongst eight individuals and 1 LLC stated as principals on the liquor license. Led by patriarch Charles Dolan, the Dolan loved ones, which owns the Knicks and Rangers via sister business MSG Sports, is really worth $4.6 billion, according to Forbes. MSGE share charges have fallen precipitously from a 52-week superior of $84.57 to $43.00 on Wednesday. The Dolans collectively possess 8.4 million shares of MSGE.

The enterprise initial announced the ban, which applies to all corporations symbolizing plaintiffs suing MSG or its affiliates, in June. It applies only to lawyers and not to other workers at the firms.

MSG instituted the uncommon ban “because of the adversarial nature inherent in litigation proceedings, and for the reason that of the opportunity for get hold of with the company’s workforce and disclosure outside good litigation discovery channels that could result from the presence” of any adversarial lawyers at the company’s venues, MSG law firm Hal Weidenfeld wrote in a June 24 letter attained by Reuters.

Plaintiffs’ legal professionals from Davidoff Hutcher & Cintron sued, with a New York Supreme Court docket choose ruling that “the plaintiffs may perhaps not be denied entry into any exhibits in which they have a valid ticket.” On the other hand, the decide also dominated that MSG could refuse to provide tickets to the plaintiffs and could revoke them at any time right before entry, as well as bar them from sporting events at its venues. In a statement, MSG referred to as it a “clear win.”

How MSGE has enforced the ban has been the matter of controversy. 1 lawyer at the firm Grant & Eisenhofer, who is not involved with her firm’s litigation with MSG and was not knowledgeable of the coverage, alleged in a sworn affidavit that the venue applied face-recognition program to establish her, according to Reuters. Even though attending a live performance at MSG with her husband, she stated, she was approached by workforce and requested to existing identification. She refused and was appropriately determined ahead of getting removed from the arena. MSG did not reply to a ask for for remark on this specific incident.

With additional reporting by Hank Tucker.