The Dolan household made its cash — the cash used to buy the Knicks and Madison Sq. Backyard — as a result of Charles Dolan based Cablevision, one of many nation’s largest cable tv corporations. The Knicks are owned by the Cablevision spin-off Madison Sq. Backyard Firm (MSG), the place James Dolan is the CEO. That firm spun off Sphere Leisure, which owns the MSG Community, on which New York Knicks video games are broadcast regionally. Protected to say, Dolan is invested within the success of cable and the MSG Community.
That’s the background to grasp why Dolan is reportedly opposing the NBA’s working funds for the approaching season, one thing he introduced to the opposite house owners in a letter, reviews Adrian Wojnarowski of ESPN.
In a letter despatched to the NBA’s Board of Governors and obtained by ESPN, Knicks proprietor James Dolan continues to take problem with the league workplace and tells groups that he’ll vote no on the league’s proposed working funds for 2024-2025 and the election of a brand new BOG chair. Dolan… pic.twitter.com/DJvuLS7Mdh
— Adrian Wojnarowski (@wojespn) September 9, 2024
This shall be Dolan’s newest hole protest vote, the Knicks had been reportedly the lone no vote on the huge new nationwide tv broadcast deal accredited in July and can kick in for the 2025-26 season (not the approaching one, however a yr from now).
That new tv deal pushes ahead the league’s technique of leaning into streaming its video games, with some video games completely on NBC’s Peacock and Amazon Prime, and it follows a technique the NFL and MLB are utilizing as effectively. As shoppers are slicing the wire and transferring away from conventional cable, sports activities leagues are transferring to fulfill viewers the place they’re.
The tv deal shouldn’t be Dolan’s solely grievance, he additionally shouldn’t be a fan of the league’s income sharing plan, which faucets a number of the group’s native broadcast and sponsorship income. Dolan shared his view of the NBA world in a letter to the other owners opposing the new television deal that ESPN’s Wojnarowski obtained in July (when the published plan was accredited).
“The NBA has made the transfer to an NFL mannequin — deemphasizing and depowering the native market. Quickly, your solely income concern would be the sale of tickets and what coloration subsequent yr’s jersey shall be. Don’t be concerned, as a result of resulting from income pooling, you’re assured to be neither a hit nor a failure. In fact, to get there, the league should take down the profitable franchises and redistribute to the much less profitable. This new media deal goes an extended method to carrying out that purpose.”
Dolan sees the monetary benefits he had because the proprietor of the group within the nation’s largest media market slipping away, as are the cable-based regional sports activities networks carrying NBA video games (though that will continue this season with the league reaching a deal with Diamond Sports, which is in chapter). The opposite house owners didn’t share his view. Dolan stepped down from a number of Board of Governors committees final November and reportedly has not attended any BOG occasions since, sending MSG normal counsel Jamaal Lesane as his proxy.
The Knicks are additionally within the means of suing the Toronto Raptors over the alleged theft of mental property in an uncommon case, with New York saying it wanted to go to courtroom as a result of NBA Commissioner Adam Silver shouldn’t be a impartial arbitrator.
The irony is that for a few many years the Knicks — typically due to Dolan’s choices — did not use their massive market benefits effectively and the group floundered. Now, because the league strikes towards streaming and income sharing, Dolan has handed basketball decision-making over to former agent Leon Rose, who has turned the Knicks right into a title contender behind Jalen Brunson.
