Knicks’ Century-Old MSG Found Guilty Alongside Billionaire Owner James Dolan in “The Dumbest Suit Yet”

The home court of the NBA’s New York Knicks, the Madison Square Garden, is in the midst of a legal lawsuit. And the Executive Chairman and Chief Executive Officer of the MSG James Dolan is caught in the middle of the fiasco. The American businessman is facing criticism for his dubious use of facial recognition software to deny critics and attorneys access to Radio City Music Hall and the MSG.

The civil rights suit was filed in March last year in the Manhattan Supreme Court, and Dolan was accused of violating a city privacy law that forbids the use of biometric data for financial gain. MSG and Dolan tried to dismiss the allegations, but it appears that the odds are not in their favor.

The law is against Dolan

While a spokesperson from the MSG referred to the lawsuit as “the dumbest suit yet,” a federal judge has approved of the data-privacy lawsuit against owner Dolan and Co. In recent developments, U.S. Magistrate Judge James Cott rejected MSG’s move to dismiss a class-action lawsuit alleging that billionaire Dolan violated a city privacy law. Lewis Kaplan, a federal Manhattan federal judge, will look into James Cott’s recommendation and present a decision soon.

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However, considering that federal judges generally support magistrates’ opinions, it might take a nasty turn for Dolan. The Garden may be required to pay compensation money to millions of people who have been to MSG-owned venues since the law’s implementation in July 2021. So what is the MSG’s counter-argument in all this mess?

MSG asserts they do not sell information

The Garden and owner Dolan argued that the case does not hold any water because they do not sell the biometric data to third parties. One of their spokespersons said, “Our policies and practices are 100% legal, and as we’ve always made clear, we don’t sell or profit from customer data.” However, Magistrate Cott dismissed these claims.

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He instead went with plaintiffs Jacob Blumenkrantz and Aaron Gross’ assertion that MSG derives profits from disclosing the data collected through the technology “by deterring litigation, and in turn, reducing MSG’s significant legal expenses.” It is to be noted that both Jacob and Aaron are New Yorkers who have been to shows held at the venue. If the case turns in their favor, it might affect businesses in that they could be barred from using facial recognition tech to identify potential shoplifters. Nonetheless, this is an interesting case, the outcome of which could change how law and technology interplay.

Do you think the case against James Dolan is justified? Or has he stepped over a line here? Share your thoughts!