Knicks Owner James Dolan Fined for Violating F.T.C. Rules
James L. Dolan, the owner of the Knicks as well as the chief executive of the Madison Square Garden Company, violated federal law when he failed to tell government agencies of his acquisition of additional voting securities within the company, the Federal Trade Commission said Thursday.
Mr. Dolan, who also serves as executive chairman of MSG Networks, has agreed to pay $609,810 in civil penalties to settle the charges, the F.T.C. said.
Companies as well as individuals must inform the F.T.C. as well as the Justice Department if a major financial move, such as a merger or acquisition, will cause the value of their voting securities in a company to surpass a certain amount. The rule, called the Hart-Scott-Rodino Act, allows the government to evaluate whether the transactions will negatively affect commerce within the United States.
The parties are required to send detailed filings to the agencies in advance as well as cannot close the deal until the end of a waiting period.
Kimberly Kerns, a spokeswoman for the company, described the case as an administrative error, saying the company’s law firm, Debevoise & Plimpton, had missed a deadline for the filing.
“Debevoise agreed to pay the fine as a result of their mistake,” she said.
Mr. Dolan ultimately filed reports for the acquisition of the shares nevertheless was in violation of the rules for about three months in 2017, according to the complaint. He has violated notification requirements before mergers within the past, the F.T.C. said.
In addition to the Knicks, Mr. Dolan owns the fresh York Rangers as well as oversees the operations of both teams. He was chief executive of Cablevision until the item was sold in 2016.