Madison Square Garden Sues New York Liquor Authority in Escalating Spat

Madison Square Garden Entertainment Corp. said it filed a lawsuit against the New York State Liquor Authority, accusing the regulator of threatening a ban on the consumption of alcohol at its venues.

(Bloomberg) — Madison Square Garden Entertainment Corp. said it filed a lawsuit against the New York State Liquor Authority, accusing the regulator of threatening a ban on the consumption of alcohol at its venues.

The lawsuit escalates a spat between MSG and the SLA, which is probing the company after a complaint from lawyers engaged in litigation with MSG who said they had been prevented from entering its properties. 

Under New York law, retail venues that are licensed by the state to sell alcohol must allow access to the general public. MSG has defended the policy of banning opposing attorneys, saying they aren’t welcome while litigation is ongoing. 

In a statement Saturday, MSG Chairman James Dolan accused the SLA of “outrageous abuses,” saying the regulator’s threat to revoke the company’s liquor licenses is a direct assault on fans who attend events at its venues, which include Madison Square Garden and Radio City Music Hall. 

“While others that have been subject to this harassment may have been forced into submission or silence, we are taking a stand on behalf of our fans and the many small businesses who have long been subject to the SLA’s corruption,” said Dolan, who has previously threatened to halt alcohol sales at New York Rangers hockey games. 

The SLA, in a statement Saturday, said “as the agency has not been served in this suit at this time, we cannot comment on it directly, but we stand ready to vigorously defend our processes, actions, and dedicated staff.”  

The spat between MSG and New York has been brewing for months and the agency last month charged MSG with four violations over its so-called “adverse attorney policy.” MSG has until March 15 to respond to the charges. Separately, Attorney General Letitia James said in January her office was looking into reports of the use of facial-recognition technology. 

MSG said on Saturday the SLA has misinterpreted its own rules requiring venues with liquor licenses to be open to the public and points to other premises such as night clubs and private clubs that have “far more exclusionary policies.”

(Updates with statement from SLA.)

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