Knicks’ Dolan, Isiah Thomas Sued Over MSG Affiliate Merger (1)

A pension fund filed suit in Delaware against New York Knicks owner James L. Dolan, eight members of his family, and other board members at Madison Square Garden Entertainment Corp., including former NBA star Isiah Thomas, in a challenge to the company’s planned merger with another Dolan affiliate.

The lawsuit, filed in Delaware Chancery Court, accuses the board of seeking to fund the “rapid” post-pandemic growth of MSG Entertainment, which owns entertainment venues and sponsors events, by merging it on self-dealing terms with MSG Networks Inc., a “shrinking business that creates cash flow.”

“The Dolans, who had every incentive” to ...