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

Madison Square Garden Entertainment Corp. has announced a lawsuit against the New York State Liquor Authority for threatening a ban on alcohol sales at company venues.

The filing is the latest in an ongoing feud between New York Knicks owner James Dolan and the SLA, which has been investigating MSG for banning attorneys involved in litigation against the company.

New York law stipulates that retail venues that are licensed to sell alcohol are required to allow access to the general public.

However, MSG has steadfastly refused to allow rival attorneys inside company venues during ongoing litigation.

‘This gangster-like governmental organization has finally run up against an entity that won’t cower in the face of their outrageous abuses,’ Dolan, who also owns the NHL’s Rangers, said in a statement. ‘While others that have been subject to this harassment may have been forced into submission or silence, we are taking a stand on behalf of our fans and the many small businesses who have long been subject to the SLA’s corruption.’

Fans walk past closed concession stands prior to the game between the New York Rangers and the Philadelphia Flyers at Madison Square Garden

The lawsuit has not yet been served to the SLA, the organization said in a statement Saturday: ‘As the agency has not been served in this suit at this time, we cannot comment on it directly, but we stand ready to vigorously defend our processes, actions, and dedicated staff.’

In February, the SLA charged MSG with four violations for the ‘adverse attorney policy,’ which has also drawn 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 the SLA’s charges.

The company claims the SLA is misrepresenting its rules by mandating venues that sell liquor to be open to the public, while night clubs and bars have ‘far more exclusionary policies.’

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

‘If you’re suing us, we just asking you please don’t come until you’re done with your argument with us – the end,’ Dolan told Good Day New York. ‘And yes, we’re using facial recognition to enforce that.’

When asked if he would back down from this position, Dolan emphatically responded: ‘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 Chief Executive, Sharif Kabir (right)

Dolan was speaking to Good Day New York after James warned MSG that it may be violating anti-bias laws with its practice of barring lawyers from its venues if they work for firms suing the company. James’ interest in the case comes after the SLA threatened MSG’s license, prompting Dolan to directly attack the group’s Chief Executive, Sharif Kabir, during his Good Day New York interview in late January.

‘They they’re being extremely aggressive, and they’re saying ”we’re going to take away your liquor license,”’ Dolan said.

‘So I have a little surprise… because they’re basically doing this for publicity, so we’re going to give him some publicity,’ he continued, raising a small flyer featuring an image of Kabir and his contact information.

‘What we’re gonna do right is, we’re going to pick a night, right? Maybe a Rangers game, and we’re going to shut down all the liquor and alcohol in the building now.

‘This isn’t going to bother me because I’ve been sober 29 years. I don’t need the liquor. But instead what we’re gonna do is where we serve liquor, we’re going to put one of these up, which says ”if you would like to drink it a game, please call write Sharif Kabir, chief executive officer or write him an email at this number… and the and tell him to stick to his knitting.”

‘Stop grandstanding and trying to get press.’

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

Dolan was speaking to Good Day New York after state attorney general Letitia James (pictured) warned MSG that it may be violating anti-bias laws with its practice of barring lawyers from its venues if they work for firms suing the company

The attorney general’s office said in a letter to MSG Entertainment that the ban — and the company’s use of facial recognition technology to enforce it — may violate anti-discrimination laws and may dissuade lawyers from taking on cases such as sexual harassment or job discrimination claims against the company.

‘MSG Entertainment cannot fight their legal battles in their own arenas,’ James, a Democrat, said in a statement. ‘Madison Square Garden and Radio City Music Hall are world-renowned venues and should treat all patrons who purchased tickets with fairness and respect.’

The lawyer ban came to light in October 2022 when attorney Larry Hutcher, a longtime New York Knicks season ticket holder, was told that his seats had been revoked because his law firm was representing ticket resellers suing MSG. He filed a lawsuit in response.

Since then, other lawyers have come forward with stories about being blocked from concerts, sports events and shows including the Rockettes’ Christmas Spectacular.

The policy potentially affects thousands of lawyers at scores of firms and is being enforced through the use of technology that scans the faces of people entering venues owned by MSG and checks them against a databank of lawyers from banned firms.