James Dolan, who serves as chief executive of the Madison Square Garden Company and owner of the New York Knicks, has been hit with a hefty fine for violating Federal Trade Commission rules, according to a report from Emily Baumgaertner of The New York Times.
On Thursday, the FTC noted that Dolan failed to tell government agencies that he and his company had acquired additional voting securities.
Via Emily Baumgaertner of The New York Times:
Companies and individuals must inform the F.T.C. and the Justice Department if a major financial move, such as a merger or acquisition, will cause the value of their voting securities in a company to surpass a certain amount. The rule, called the Hart-Scott-Rodino Act, allows the government to evaluate whether the transactions will negatively affect commerce in the United States.
According to The New York Times, Dolan has agreed to pay $609,810 in civil penalties to settle the charges. A spokeswoman for the case labeled the mishap as an administrative error. It seems the company's law firm, Debevoise & Plimpton, missed a deadline for the filing.
“Debevoise agreed to pay the fine as a result of their mistake,” she said.
The Knicks will be back in action on Saturday night, when they'll square off against their crosstown rivals, the Brooklyn Nets. Tip-off is set for 7:30 p.m. ET.
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