NHL Eyes Disciplinary Proceedings That May Strip MSG Of Rangers
By Tripp Mickle and Eric Fisher, Staff Writers, SportsBusiness Journal
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MSG Could Lose Ownership Of Rangers
As A Result Of Legal Spat With NHL |
The NHL has proposed disciplinary proceedings against MSG that could result in the suspension or termination of their ownership of the NHL Rangers, according to a draft letter written by NHL Commissioner Gary Bettman that was filed in New York district court late yesterday. The letter, part of the league's ongoing legal fight against MSG, alleges that MSG -- by suing the NHL -- has violated the league constitution. The letter was part of a counterclaim the NHL filed asking the court to issue a judicial declaration allowing the NHL to discipline the Rangers and MSG internally. If the court fulfills that request, the league will immediately begin disciplinary proceedings against MSG. "By calling into question the League's ability to market and exploit various rights on a collective basis, MSG has also damaged the League in its dealings with third parties and the Member Clubs in their dealings with third parties and/or prospective purchasers in an amount not present known," the NHL's filing reads in part.
WHAT COULD HAPPEN: The NHL BOG would hear the case against MSG and an affirmative vote of three-fourths of the members present would be required to sustain a charge. The board also would vote on appropriate sanctions, which could include: suspension or termination of MSG's membership in the NHL; a fine; or any other action the board deems appropriate. If the NHL does begin disciplinary proceedings against the NHL, MSG would be able to present a defense to the BOG, but it would not be allowed to challenge a termination of its Rangers ownership in court.
MSG STANDS BY CASE: MSG stands by its case against the NHL asserting that the league is in violation of anti-trust laws. It believes that anti-trust laws trump NHL internal business agreements. In a statement, MSG said, "Every American citizen or business has a right to go to court and have its dispute heard by an impartial judge. The NHL shouldn't be afraid of the judicial system. We will pursue our case vigorously and will not be intimidated by the NHL's bullying tactics."
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