James Dolan’s rare TV interview didn’t help Madison Square Garden in court

Madison Square Garden CEO James Dolan’s rare television interview earlier this year didn’t do his company any favors in court, according to a judge’s ruling.

Late last week, State Supreme Court Justice Arthur Engoron threw out MSG’s lawsuit against the State Liquor Authority, which sought to block the authority from punishing the company for using facial recognition technology to prevent certain lawyers from entering events at the famed arena, and other MSG-owned venues including Radio City Music Hall and the Beacon Theatre.

In his ruling, Engoron found MSG’s lawsuit is premature because the company hasn’t suffered “an actual concrete injury” yet. While the SLA has filed disciplinary charges that could result in the company’s venues losing their liquor licenses, it hasn’t yet finalized any penalties.

But in a footnote, Engoron also pointed to Dolan’s January interview with Fox 5 New York, in which Dolan cast doubt on whether losing the liquor license would harm MSG.

“In any event, there is a factual issue as to whether MSG will suffer irreparable economic damages as MSG’s principal, James Dolan, has publicly stated ‘people [sic] still gonna come to the games right … and you know honestly but alcohol, we don’t make a lot of money on alcohol,’” Engoron wrote on Thursday, quoting from Dolan’s Jan. 26 television interview.

MSG’s attendance ban, which has been in place since at least late last year, applies to attorneys who work at firms suing the company.

In February, the SLA charged MSG with violating its rules in connection to banning certain guests. Rules require the venues to be “open to the public.” Those disciplinary charges, in theory, could result in the venues having their liquor license revoked or suspended.

MSG sued the authority in early March, accusing the state regulators of overstepping their bounds. They asked the court to block the SLA’s investigation and prevent it from imposing penalties. That led to Thursday’s ruling, in which Engoron dismissed MSG’s lawsuit in its entirety, in part by citing Dolan’s interview with Fox 5.

Engoron’s footnote pulled Dolan’s quote from a previous court filing by state Attorney General Letitia James’ office, which seems to slightly misquote him. Dolan actually said MSG doesn’t “make all our money on alcohol,” rather than “a lot of money on alcohol.”

Still, Engoron dismissed MSG’s request to block the SLA from taking action, arguing the company’s potential damages were purely financial. Engoron also rejected MSG’s argument that, based on court precedent, the SLA’s “open to the public” rule applies only to restaurants, not all entertainment venues.

“(This) court believes that to be a distinction without a difference,” Engoron wrote.

In a statement, SLA spokesperson William Crowley said the authority was “pleased and not surprised” with the court’s ruling.

“The SLA will continue our disciplinary process to ensure that (Madison Square Garden Entertainment Corp.) complies with its duties under the law,” he said.