A lawsuit filed in late March in Delaware by the shareholders accuses the Knicks owner of spending too much time with his blues band and not enough time in the front office, according to Pitchfork.com.
According to the lawsuit, Dolan, 63, spends far more time touring and recording as the frontman and guitarist for his band JD & the Straight Shot.
“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," the lawsuit states. “In late 2017, the band released its sixth album, and is in the process of recording a seventh.”
The suit also claims that Dolan, who is also the CEO of Madison Square Garden Company, is grossly overpaid for his position.
Dolan has been paid $75.6 million over the past three years, which shareholders say is too much for the amount of work he does. In comparison, the average CEO is paid $17 million per year, according to the lawsuit.
It also called Dolan’s pay “excessive” and “far from fair.”
In a statement to Agenda, MSG blasted the filing, saying, “This lawsuit amounts to nothing more than corporate harassment. The company stands by its policies and practices.”
Dolan’s family also harshly criticized the suit, saying the shareholders will lose this fight:
“These [law] firms represent the worst in our legal system. They manufacture complaints and then advertise for clients, also known as trolling. Members of these firms tried the same tactic at Cablevision [where Dolan previously served as CEO]. They lost and will lose again. We look forward to fully litigating this matter to conclusion. We will never settle nor give in to this corporate extortion.”
Dolan has been a polarizing person in the NBA — the owner was criticized for missing the 2017 NBA Draft so he could play in a show with his band and has been noted for his long-running feud with former player Charles Oakley. He also raised eyebrows last month when he banned a Knicks fan for life from Madison Square Garden for yelling at Dolan to sell the team.
