New York Knicks and New York Rangers owner James Dolan is in the news, and it doesn't put him in a positive light.
Not one bit:
FTC charges executive whose company owns New York Knicks, New York Rangers with violations of U.S. premerger notification requirements. To settle charges, Madison Square Garden Company Executive Chairman James L. Dolan will pay $609,810 in civil penalties: https://t.co/nkJYfssjcI— FTC (@FTC) December 6, 2018
Dolan, who is also the Executive Chairman of the Madison Square Garden Company, has agreed to pay $609,810 in civil penalties after allegations by the Federal Trade Commission (FTC) that he violated the Hart-Scott-Rodino Act, meaning he failed to report in a timely fashion about the acquisition of voting securities in MSG Company.
Moments ago, The Madison Square Garden Garden Company sent 12up the following statement:
“Any shareholder whose stockholdings exceed certain thresholds is required to make an HSR filing. Debevoise & Plimpton is the law firm responsible for making timely HSR filings relating to Jim Dolan’s MSG stock. Debevoise inadvertently missed a required HSR filing deadline, for a second time, which resulted in a fine by the FTC. Debevoise agreed to pay the fine as a result of their mistake.”
BREAKING: James Dolan, exec. chairman & CEO of the Madison Square Garden Company, which owns the New York Knicks and Rangers, agrees to pay $610K to settle FTC securities violations charges https://t.co/ki1ZlDeP8Q— CNBC Now (@CNBCnow) December 6, 2018
Dolan did end up filing the acquisition of these additional shares that pass the threshold and mandates a notification and approval by the FTC and DOJ, but according to the FTC, he was in "continuous violation" of the rules for several months back in 2017.
Dolan won't be selling the teams, which would delight fans for both the Knicks and Rangers, but this latest report will certainly raise some eyebrows.