MSG Files Suit Against NHL Over Control Of Rangers' Web Site

MSG Suing NHL Over Control Of Rangers' Web Site

THE BIGGER PICTURE: In N.Y., Larry Brooks wrote the suit represents "the first public evidence of the schisms evolving within the [NHL BOG] and that are threatening [Commissioner] Gary Bettman's reign." The Rangers are "no longer amenable to ceding control of their business to [the league], and neither are a growing number of the big-market teams."  In a fax Friday to the 29 other NHL owners, MSG Chair James Dolan wrote, "We fundamentally object to forced consolidation of core club rights in the League's hands. Key among our concerns has been the NHL's new media plan and the takeover of all club Web sites." More Dolan: "We have repeatedly expressed our belief that individual clubs could achieve the same or better results by entering the new media business on their own terms, rather than being mandated to submit to a league-wide initiative. Moreover, the NHL's projection of revenues and implementation of this plan has been flawed  - the June projected results were already $12.6[M] behind plan for the first two years, even after reducing spending by $2.7[M]."  He added, "We believe that the League continues to squander opportunities to improve our business and solidify and grow our fan base." The lawsuit and Dolan's letter both cite the $200,000 fines the NHL assessed the Rangers "for implementing revenue-generating initiatives on their Web site including merchandise sales, virtual signage insertion and limited in-marketing streaming of home games." Brooks noted the fines were "imposed despite the Rangers' belief they'd been granted permission by Bettman to implement those programs on a test basis." NHL Deputy Commissioner Bill Daly said in an e-mail, "We will [respond] at the appropriate time and in the appropriate forum." Brooks also noted that "while Bettman had been granted previous authority" by the BOG to proceed with the league's business plan, the commissioner "has proceeded to implement and expand the plan without the necessary vote that would allow him to do so" (N.Y. POST, 9/30).

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