Madison Square Garden announces lawsuit against New York liquor board over licensing threats

Madison Square Garden Entertainment Corp. announced a lawsuit against the New York State Liquor Authority for threatening to ban the sale of alcohol on company premises.

The filing is the latest in ongoing litigation between New York Knicks owner James Dolan and the SLA, which was investigating MSG for barring attorneys involved in litigation against the company.

New York State law states that retail stores licensed to sell alcohol are required to allow access to the general public.

However, MSG has steadfastly refused to allow rival lawyers to enter the company’s premises during pending litigation.

“This gangster-like government organization has finally encountered an entity that will not cower in the face of their outrageous abuses,” Dolan, who also owns the NHL’s Rangers, said in a statement. “While others who have been subject to this harassment may have been forced to surrender or remain silent, we are taking a stand on behalf of our fans and many small businesses that have long been subject to SLA corruption.”

New York Knicks owner James Dolan watches a Milwaukee Bucks game during the first half of an NBA basketball game, Wednesday, Nov. 30, 2022.

New York Knicks owner James Dolan watches a Milwaukee Bucks game during the first half of an NBA basketball game, Wednesday, Nov. 30, 2022.

Fans walk past the closed concession stands ahead of a game between the New York Rangers and the Philadelphia Flyers at Madison Square Garden

Fans walk past the closed concession stands ahead of a game between the New York Rangers and the Philadelphia Flyers at Madison Square Garden

The lawsuit has yet to be served on SLA, the organization said in a statement Saturday: “Since the agency has yet to be served on this lawsuit, we cannot comment directly on it, but we stand ready to vigorously defend our processes, operations and dedicated staff.”

In February, the SLA charged MSG with four violations of its “opposing attorney policy,” which also caught the attention of New York Attorney General Letitia James, whose office is investigating the use of facial recognition technology to enforce the policy.

MSG has until March 15 to respond to SLA allegations.

The company says the SLA misrepresents its policies by ordering establishments that sell alcohol to be open to the public, while nightclubs and bars have “much more exclusionary policies.”

In January, the usually media-shy Dolan addressed the controversy at Good Day New York.

“If you’re suing us, we’re just asking that you don’t come until you’re done arguing with us – it’s over,” Dolan told Good Day New York. “And yes, we use facial recognition to enforce that.”

When asked if he would step down from that position, Dolan firmly replied, “Not at all.”

James' interest in the case comes after the State Liquor Authority threatened MSG's license, prompting Dolan to directly attack the group's CEO, Sharif Kabir (right)

James’ interest in the case comes after the State Liquor Authority threatened MSG’s license, prompting Dolan to directly attack the group’s CEO, Sharif Kabir (right)

Dolan spoke to Good Day New York after James warned MSG that he may be violating anti-discrimination laws through his practice of banning lawyers from their premises if they work for companies posing for the firm. James’ interest in the case came after the SLA threatened MSG’s license, prompting Dolan to directly attack the group’s CEO Sharif Kabir during his Good Day New York interview in late January.

“They’re very aggressive and say ‘we’ll take away your liquor license,'” Dolan said.

“So I have a little surprise… because they’re basically doing it for publicity, so we’re going to give him some publicity,” he continued, holding up a small flyer containing Kabir’s photo and his contact information.

“What we’re going to do right is choose the night, right? Maybe a Rangers game and we’ll shut down all booze and booze in the building now.

“It won’t bother me because I’ve been sober for 29 years. I don’t need alcohol. But what we’re going to do instead is where we serve alcohol, we’ll put one that says, “If you want a drink, write to Sharif Kabir, the general manager, or email him to this number… and tell him to keep knitting.”

“Stop boasting and trying to get the press.”

Kabir did not immediately respond to DailyMail.com’s request for comment.

Dolan spoke to Good Day New York after State Attorney General Letitia James (pictured) warned MSG that it may be violating anti-discrimination laws by its practice of banning lawyers from its premises if they work for firms posing for the company

Dolan spoke to Good Day New York after State Attorney General Letitia James (pictured) warned MSG that it may be violating anti-discrimination laws by its practice of banning lawyers from its premises if they work for firms posing for the company

The Attorney General’s office wrote in a letter to MSG Entertainment that the ban – and the company’s use of facial recognition technology to enforce it – could violate anti-discrimination laws and could deter lawyers from pursuing cases such as sexual harassment or workplace discrimination against the company.

“MSG Entertainment cannot fight legal battles in its own arenas,” Democrat James said in a statement. “Madison Square Garden and Radio City Music Hall are world-renowned venues and should treat all ticket-buying customers with fairness and respect.”

The lawyer’s ban came to light in October 2022, when attorney Larry Hutcher, a long-time New York Knicks season ticket holder, was told that his seats had been revoked because his law firm represented ticket sellers suing MSG. In response, he filed a lawsuit.

Since then, other lawyers have come forward with stories of concerts, sporting events and shows being blocked, including the Rockettes Christmas show.

The policy potentially affects thousands of lawyers at dozens of firms and is enforced with technology that scans the faces of people entering MSG-owned facilities and compares them with a database of lawyers from banned firms.

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