What is the NBA to do about New York Knicks Owner James Dolan?
The New York Knicks principal owner, James L. Dolan was unequivocally clear in his statement to his team and staff. The Knicks will not discuss the George Floyd tragedy or related social justice efforts. Part of his statement was that “we are not any more qualified than anyone else to offer our opinion on social issues.”
This is the same James Dolan that offered his checkbook to the tune of hundreds of thousands of dollars to help elect Donald J. Trump. He is the same James Dolan that offered up a song about Trayvon Martin with his band. The lyrics, according to the New York Times, includes this passage,
“Who is that walking?
A shadow in the street
Looks like trouble from a judgement seat
There’s no good under that hood.”
There have been fan uprisings over the years. It has been an indistinguishable mix of his mostly two decades of losing and his icy relationships with highly visible African Americans among the Knicks fan base, including Spike Lee who vowed not to return to the Knicks games even if the season is salvaged.
The NBA is the rare league that actively encourages its clubs and players to participate in social justice causes. African Americans comprise about 75% of NBA players. Dolan has elected to shun that policy, and offend most of the Knicks players, in all likelihood.
Yet, he has broken no law. He has not violated any express provision of NBA governing documents. Saliently, he has not yet been caught saying the same type of racist remarks that prompted NBA Commissioner Adam Silver to ban then Los Angeles Clipper owner Donald Sterling for life, except perhaps the lyrics he chose to sing. But that’s old news.
Article 35 of the NBA Constitution gives the Commissioner considerable power to make the call. There is also a potential ouster and divestment of ownership interests in the Knicks from the other NBA owners. But that would take 23 of the 30 NBA’s principal owners.
These NBA franchises are not public companies. As with most private enterprises in America, long-standing policy provides entrepreneurial freedom to run your business as you see fit. Let the market determine your fate. Consistent with that underlying principal, the owners approve each other to enter the fraternity, and approve of the rare ouster. Owners are probably thinking,
“Let’s not be narrow-minded about ousting another owner. The next time, it may be me that has three too many, and says something I can’t walk back. We don’t dictate a particular pollical allegiance. We don’t dictate profitability thresholds. We don’t measure your ‘hug-ability’ with your fan base.”
Silver is a strong and skilled Commissioner. But he serves at the pleasure of the owners. He must use good judgement, at least as so considered by the majority of the owners. And that circuitously leads back to the owner discretion to be imperfect and nonuniform. So maybe a technical foul to the only owner to go rouge on social policy. But Referee Silver does not appear poised to throw him out of the game.
Of course, inaction can have consequences. Every year that the Knicks fail, an opportunity cost is incurred. The Kicks disproportionately affect the entire league because after all the venue is hoops-loving New York City. A great Knicks team is exponentially better for the League than small market success by any other club.
NBA times are good, trending up financially beyond any of North America’s pro sports leagues. But the growth is on the wings of international markets that are black and brown. The harder decisions about owner cultural competency do not have to be made – yet. Even with this truncated season, which will not be as profitable, billionaire owners have staying power and confidence that they are capable financial stewards of their own best interests. Dolan is not waving a white flag to the market.
So, the short answer to the question of what is the NBA to do about James Dolan is: “Nothing”. And most certainly no forced ownership ouster is forecasted based on the facts accumulated to date.
If Dolan takes punitive action against players who participate in social action, laced with Donald Sterling-ish comments, the conversation can change dramatically.
Roger M. Groves is a Washington DC attorney and Florida business consultant. Formerly a tax judge, he is nationally networked with law firms and financial advisors in the sports and entertainment industry. He can be reached at (571) 228-0871, roger@sports-apps.com or 1629 K Street N.W., Suite 300, Washington DC, 20006.