Madison Square Garden Could Lose Liquor License After Billionaire CEO’s Discriminatory Ban on Lawyers

(Photo: ANGELA WEISS/AFP/Getty Images)

The New York State Liquor Authority has released a statement indicating that the Dolan company’s unique lawyer ban could lead to Madison Square Garden (MSG) losing its liquor license.

Currently, MSG Entertainment chairman and CEO, James Dolan is one of eight people listed on the liquor license. The company first announced the ban on lawyers back in June. The ban includes all firms representing plaintiffs suing MSG or its affiliates. However, it applies only to lawyers.

According to a letter obtained by Reuter and written by an in-house lawyer for MSG Entertainment Hal Weidenfeld, the company decided to bar lawyers, “because of the adversarial nature inherent in litigation proceedings, and because of the potential for contact with the company’s employees and disclosure outside proper litigation discovery channels that could result from the presence of any of your firm’s lawyers at the company’s venues, neither you, nor any other attorney employed at your firm, may enter the company’s venues.”

It turns out this could be considered a form of discrimination and could result in the venue losing its liquor license.

The statement from the liquor authority said, “as a condition of your [liquor] license your premises must remain open to the public.” It continued, “groups or individuals cannot be excluded on the basis of criteria that are not directly related to your duties under your license.” Violations of this principle could result in “disciplinary action against your license.” 

According to Forbes, there have been reports of individuals being denied entry for months at MSG, Radio City Music Hall, the Beacon Theater and the Chicago Theater. These are all popular venues for NBA and NHL games along with famous shows like the Rockettes. 

An MSG spokesperson told Forbes that: “We are confident that our policy is in compliance with all applicable laws including the New York State Liquor Authority.”

If MSG loses its liquor license it could result in millions of dollars in lost revenue. 

The Dolan family collectively owned shares of MSGE are worth as much as $360 billion, depending on where the market is at the time. The Dolan family’s lead patriarch is Charles Dolan. He is known for being the founder of Cablevision and HBO. 

The Dolan family also owns the Knicks and Rangers through their sister company MSG Sports which is valued at $4.6 billion. 

Last month, New York State Supreme Court Justice Lyle Frank of Manhattan ruled that the MSG ban, “[individuals] may not be denied entry into any show where they possess a valid ticket.” Although, Justice Frank also determined that MSG can refuse to sell tickets to certain people. This was the result of a lawsuit by Davidoff Hutcher & Citron. 

The most surprising aspect of this is MSGE’s ability to enforce its ban. 

According to an affidavit filed in November, a lawyer at the firm Grant & Eisenhofer stated that while attending a Concert at MSG she was identified using face-recognition software. The lawyer explains that she was approached by employees and asked to present her identification. She refused but was still correctly identified before being removed from the venue. 

James Dolan has publicly feuded with fans and former Knicks players at the Garden previously and has threatened lifetime bans on multiple occasions. 

Time will tell if the New York State Liquor Authority decides to press the issue. MSGE appears confident they can win in court and they certainly have the money to see it through. 

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