Shareholders say that Dolan’s pay is “excessive” and his job is only “part-time” considering how much he tours with his band JD & the Straight Shot.
“James Dolan, the executive chairman and CEO of Madison Square Garden Company, is ridiculously overpaid,” claims the new lawsuit imposed by shareholders of the sports and entertainment company.
According to the complaint, Dolan allegedly earns far more than others in his industry. Shareholders state that Dolan “works at MSG only part-time,” with much of his work oriented toward touring and recording as the frontman and guitarist for his band JD & the Straight Shot.
James Dolan, the CEO of msg and owner of knicks is condemned by shareholders for having received more money than deserved. SOURCE: North Jersey
In a statement, MSG told the Financial Times that “This lawsuit amounts to nothing more than corporate harassment. The company stands by its policies and practices.” (insiders for MSG and Dolan did not immediately answer to Pitchfork’s request for comment, nor did the shareholders’ lawyers.)
Over the last three fiscal years, MSG paid Dolan $75.6 million, according to the organization's filings. “By comparison, MSG’s peer companies paid their CEOs an average of $17 million for the same three-year period,” the complaint added.
“The highest-paid peer CEO received $32.4 million, over $43 million less than James.” The lawsuit claims Dolan’s pay is “excessive” and “far from fair.”
Several individuals of Dolan's family being the board members of MSG has also been indicted to the lawsuit. And as for their own defense, the family says “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 a conclusion. We will never settle nor give in to this corporate extortion.” (back in 2015, a Delaware judge ruled out a similar lawsuit at Cablevision.)
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In addition to Madison Square Garden and Radio City, MSG’s live music venues contain the Forum in Los Angeles, the Chicago Theatre, and the Las Vegas clubs TAO and Marquee.
As per further documents, the reports state, “JD & the Straight Shot travels and performs extensively domestically and internationally.”
MSG stockholders are complaining that their CEO James Dolan is mostly paid for his musical chores. SOURCE: Deadspin/ Richard Drew
The statement has also claimed, “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. In late 2017, the band released its sixth album, and is in the process of recording a seventh.”
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The lawsuit was filed in late March in Delaware court and the subsequent complaint was brought by the Norton C. Willcox Testamentary Trust on behalf of all the stockholders.