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Knicks, Rangers owner Dolan to pay $609K to settle securities violations

December 6, 2018

James Dolan, the CEO of the company that owns the New York Knicks and Rangers will pay $609,810 in civil penalties to settle Federal Trade Commission and Justice Department allegations he violated securities rules, the departments said Thursday.

Mr. Dolan is the CEO of the Madison Square Garden Co. and executive chairman of MSG Networks. The FTC said he failed to report in a timely manner his acquisition of additional voting shares in Madison Square Garden Co.

The FTC said Mr. Dolan did make a filing, but was in “continuous violation” of the rules for about three months in 2017. The maximum fine for the violation of the Hart Scott Rudino Act is roughly $41,000 a day, the Justice Department said.

In a statement, the company said Dolan relied upon the law firm of Debevoise Plimpton to make the filing, but it had “inadvertently missed” the deadline for a second time, triggering the fine. Debeveoise Plimpton have agreed to pay the fine as the result of their mistake, the statement said.

The settlement must be approved by a federal court in Washington, D.C., after a 60-day comment period, the Justice Department said.

Madison Square Garden Co. also owns the New York Liberty basketball team and Radio City Music Hall and the Radio City Rockettes.

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