THE OLIGARCH OF CLASSICAL MUSIC
Billboard, May 15, 2021
After wresting control of IMG Artists in an internal power struggle, Russian-born tycoon
Alexander Shustorovich has kept the agency alive through the pandemic to become the world’s largest manager of classical music talent. Billboard investigates the secretive CEO’s unlikely path — from building a publishing fortune to igniting a U.S.-Russia summit crisis over uranium — to classical prestige.
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BY FREDRIC DANNEN
IN THE SPRING OF 2008, James Dolan, the CEO of Cablevision, called an employee for advice. Dolan was never a man who did things by halves. When he discovered a passion for yachting, he was not content merely to sail for pleasure, but instead put himself through the grueling regimen of competitive racing. Now he was driven by a different ambition — to make a success of his rock band, JD & The Straight Shot, for which he sang lead vocals, played guitar and wrote songs. Dolan believed the time had come for professional management, and he asked his employee, who was knowledgeable about such matters, to recommend someone. “Irving Azoff,” the employee told his boss, to which Dolan unexpectedly replied, “Who is Irving Azoff?”
Cablevision owned Madison Square Garden, so it was surprising that Dolan didn’t know the name of perhaps the most powerful talent manager in the music business. He got a firsthand answer to his question a few weeks later, when he and Azoff were formally introduced in New York. The Eagles, a band Azoff had managed since the 1970s, came to the Garden, and MSG Entertainment’s then-president Jay Marciano, who had once reported to Azoff, set up a meeting between his former boss and his present one. If Dolan’s original purpose in meeting Azoff had concerned his band, the discussion soon turned into something bigger. “Jay introduced me to Irving,” Dolan recalls in a rare interview with Billboard, “and Irving did eventually for a while take us on” as manager of JD & The Straight Shot. But, Dolan says, “Irving and I were more interested in our business relationship.”
The Dolan-Azoff business relationship has not only had a significant impact on their respective companies, but could change the shape of the post-pandemic live-music industry. Five years after the two men were formally introduced, MSG paid $125 million for 50% of Azoff’s Los Angeles-based artist management company, which was renamed Azoff MSG Entertainment and billed as a joint venture. Azoff continued to call his own shots, however, while MSG provided him with $63.5 million in additional financing, which he used to diversify, making his company less dependent on live music. He formed an arena-development partnership called Oak View Group, which has undertaken construction projects for venues in the United States and Europe — all to be used for sports as well as concerts. In the meantime, Dolan unexpectedly began taking MSG in the opposite direction, pouring his company’s resources into concert arenas free of sports. With that decision, Dolan today stands alone against the dual-purpose venue model embraced, it seems, by everyone else — Azoff included.
Yet it was Azoff who first nudged Dolan in that singular direction by urging him to buy The Forum in Inglewood, Calif. Once the home of the Los Angeles Lakers, the building was remodeled by MSG as the only arena-size concert venue in the United States lacking a sports franchise. With its warm interior and superlative acoustics, the modernized 17,800-seat Forum became one of the best-attended entertainment venues in the world, grossing $491.3 million and selling 5.4 million tickets for 506 shows since it reopened in January 2014, according to Billboard Boxscore. The Eagles christened the renovated arena with a six-night run. The warmup act — the first group to perform at the new Forum — was Dolan’s band, JD & The Straight Shot.
But amid the success, trouble was brewing. MSG had leased land in Inglewood for overflow parking for The Forum. The lot was seldom used because it was an inconvenient mile or so from the venue, and in 2017, when the mayor of Inglewood asked MSG to terminate its lease so the land could be sold to an undisclosed buyer, MSG complied. The buyer turned out to be Steve Ballmer, the former CEO of Microsoft and billionaire owner of the Los Angeles Clippers, who planned to build an arena complex for the NBA team that could also be used for concerts. Dolan was furious, and MSG sued the city and the mayor personally. In his deposition for what was called “the Clippers lawsuit,” Azoff admitted that Dolan had had misgivings about giving up the land, but had gone along with the lease termination at Azoff’s urging. “It was a mess,” said Azoff.
The mess came to an end in the spring when Ballmer took The Forum off MSG’s hands for $400 million. The sale came just as MSG, in the face of the worldwide pandemic, temporarily shuttered all of its venues — including Madison Square Garden and the Chicago Theatre, which MSG owns, and New York’s Beacon Theatre and Radio City Music Hall, which MSG leases. The annual Christmas Spectacular at Radio City, featuring the Rockettes, was canceled for the first time since the show debuted in 1933. The New York Knicks and New York Rangers, who play at the Garden, are sitting out the current season. While Dolan insisted on paying all his employees through May 3, the harsh economic realities of the coronavirus crisis could not be avoided for long. On Aug. 4, MSG Entertainment disclosed plans to lay off 350 people, roughly one-third of its corporate workforce, while MSG Sports will cut another 50 jobs, about 15% of its staff. Though the sale of The Forum wasn’t connected to the pandemic, it’s not a bad time to be divesting a performance arena for a sizable profit.
Except the profit is not quite as sizable as it might have been. Once MSG’s investment in The Forum — $120 million, including the original purchase price of $23.5 million — is subtracted, as well as taxes and other liabilities, the company comes out ahead by about $138 million. MSG’s net gain could have been higher, and the reason it wasn’t is hiding in plain sight in MSG Entertainment’s Form 8‑K, filed on May 1 with the U.S. Securities and Exchange Commission (SEC). Azoff, who never invested a dime of his own money in The Forum and who admitted in his deposition in the Clippers lawsuit that he had blundered badly by encouraging MSG to terminate its land lease, is nevertheless pocketing $48.7 million from the sale to Ballmer. (Azoff declined to be interviewed for this article.)
Azoff’s take, which Dolan defends as a sweat-equity payment, enforces a widely held view that Dolan is enthralled with him and willing to give him anything he wants. No question, he speaks of Azoff with gushing admiration, using such phrases as “the expert” and even “one of the true giants of the industry.” He also calls Azoff “one of my closest friends.” But viewed another way, Dolan’s extravagant regard for Azoff’s business acumen illustrates just how seriously Dolan is committed to his vision of arena-size venues in the service of music. His strategic divergence with Azoff in that sense led him, in December 2018, to sell back — for the original purchase price of $125 million and repayment of the loans — his 50% interest in Azoff MSG Entertainment, which is now called The Azoff Company. Further evidence of Dolan’s commitment to live music came in April, when the Madison Square Garden Company was split into two public companies, one for sports and the other for entertainment. Dolan appointed someone other than himself to be CEO of the sports entity.
Dolan wants nothing less than to revolutionize live entertainment with immersive media technology, and to that end, he has a new West Coast venue in the offing, not in Los Angeles but Las Vegas: a 34-story colossus called the MSG Sphere. It will house the world’s largest LED screen — the size of three football fields, arcing around the audience planetarium-style and creating an experience akin to virtual reality without the goggles. The Sphere, which is being built just off the Strip in partnership with the Las Vegas Sands Corp., was supposed to have opened in 2021, but the pandemic has delayed construction and the costs keep rising.
Dolan is undeterred. In fact, the Sphere in Vegas is being built as a prototype, to be followed, if Dolan has his way, by another Sphere of comparable size in London and smaller versions around the globe. With 17,500 front-facing seats, the MSG Sphere is by design unsuited for sporting events, and in order to gain an adequate return on investment, Dolan will have to attract bankable musicians eager to take full advantage of the technology. For that, he says he’s counting on assistance from Azoff, who remains a well-paid consultant to MSG Entertainment. The industry is watching, with a mixture of fascination and skepticism, to see if Dolan can pull it off.
“Jim wants to reinvent the live-entertainment experience,” notes a former MSG executive. “He couldn’t care less about sports.” That entails more than a little irony because the public and the New York tabloids persist in seeing Dolan through the lens of MSG’s sports franchises, the Knicks in particular. His passion is music — a passion inflamed further, thanks to Azoff, by his getting to tour and perform with some of his idols. Dolan has lived the life of a working musician, and his long absences on the road with his band have been well noted, sometimes with wry amusement, by his employees. Says a former colleague, “It would be easier for all of us to accept if he was just a weekend warrior and making music was just a hobby.” But it isn’t. Those who do not understand that do not understand James Dolan.
DOLAN seldom speaks to the media, but he gave three interviews via Zoom for this article. In late March, he contracted a mild form of the coronavirus, and on the day of the first interview, he tested negative and was able to reunite with his sons, whom he had not seen in over a month. For the second and third interviews, Dolan appeared before a virtual background image — an artist’s dramatic rendering of the as-yet-unfinished MSG Sphere in Las Vegas. An ex-smoker, he took short drags on a vape pen. Though initially guarded and a bit testy — Dolan is reputed to have a hair-trigger temper — he grew increasingly gracious, particularly when the subject turned to his music.
“There’s a lot of misconception out there about me,” he says. “But if you want to know who I am as a person, it’s all in that music. I pour myself completely into those lyrics and into those songs.”
Dolan is a compact five feet six, with a gruff baritone voice, a full head of wavy brown hair and a trimmed goatee. He is the third of six children born to Charles Dolan, the self-made billionaire who founded Cablevision. Twice divorced at age 65, James Dolan is father to six sons. He is one of the most recognizable chief executives in New York, but for all the wrong reasons. Dolan is a familiar figure to long-suffering Knicks fans, who see him sitting courtside at home games at the Garden, often with his arms folded and his face wearing a frown. The Knicks haven’t made the NBA finals for the past two decades, and sports writers treat him with the same hostility they once had reserved for New York Yankees owner George Steinbrenner, who was similarly castigated — until the Yankees started winning.
The attacks on Dolan for the Knicks’ losses occasionally border on the absurd. In the tabloids, he has been condemned as a “sports villain”; his stewardship of the Knicks has been described as “putrid” and “sabotage”; a New York Daily News sports writer encouraged him to “consider running for president of Russia.” He has been called “New York’s MVP” — most vilified person. Dolan has had hecklers at his band’s concerts demanding that he sell the team.
One could almost take pity on him — except that, at times, Dolan seems to go out of his way to court criticism. Two years ago, JD & The Straight Shot released “I Should’ve Known,” a song Dolan wrote to rebuke his former friend Harvey Weinstein for sexual misconduct. (“I should’ve thrown myself across his tracks/Stopped him from these vile attacks.”) The song was pilloried because in 2007, Dolan was forced to pay a multimillion-dollar legal settlement for firing a woman employee after she accused Knicks general manager Isiah Thomas of sexual harassment. The band’s 2015 album Ballyhoo! includes “Under That Hood,” a Dolan-penned protest song about the shooting death of unarmed Black teenager Trayvon Martin. In June, Dolan faced intense criticism for not similarly raising his voice in protest when the Knicks franchise was one of only two in the NBA to stay silent about the killing of George Floyd.
There’s also the 2011 song Dolan wrote called “Fix the Knicks,” a nod to the carping over his team’s failure to recapture its past glory. (“Fix the Knicks and make them shine/Get ’em to win like it’s ’69.”) It didn’t go over well. He has tried to shield his band from the vitriol of irate sports and music fans, who propose that Dolan, himself a billionaire, has simply bought his way into the limelight. Erin Slaver, a violinist-singer who has recorded and toured with the band, says she was disheartened by critics who she believes “didn’t pay any attention” to the music and were “just being hateful to be hateful.” Between 2005 and 2019, JD & The Straight Shot, which bills itself as an Americana band, released seven albums and got some positive reviews. AllMusic Guide awarded three and a half stars to 2008’s Right on Time, praising the “earthy, down-home bar band” aesthetic that Dolan seems to be striving for. JD & The Straight Shot’s songs are mostly originals, often composed in the studio and credited to multiple band members. The group has an uncommon penchant for minor modes — on its 2019 album The Great Divide, only two of the 11 tracks are in major keys, and one of those is an Allman Brothers Band cover. “We’re all just cynical musicians,” says Slaver, laughing.
Dolan carries a journal with him to jot down ideas for song lyrics. His lead vocals are steady and dependable. For 15 years, he has been taking voice lessons with fabled coach Don Lawrence, whose clients include Mick Jagger, Axl Rose and Lady Gaga. Lawrence has called Dolan “damn good” and his hardest-working student. Dolan still has had far less musical training than Slaver and other Straight Shot band members, who include guitarist Marc Copely and bassist Byron House, but Slaver says it was never an issue. “Jim’s ear is pretty detailed,” she says. “It’s amazing what he would pick out.”
Dolan loves to be onstage, where he exudes happiness and displays a self-deprecating sense of humor. He often performs in a fedora, although on one tour, when he sang the title track from the Ballyhoo! album, he swapped it for a carnival barker’s top hat. His song “Governor’s Blues,” a jab at former New Jersey Gov. Chris Christie, includes a kazoo solo. Dolan’s zest for performing is evident in his touring schedule. In 2017, his busiest year on the road, JD & The Straight Shot performed some 50 concerts throughout the United States and Europe.
During the band’s first decade, Dolan clearly got a kick out of opening for famous acts and performing for large crowds. An experiment to see if his group could draw on its own didn’t work so well. Last year, SiriusXM sponsored a 20-city tour that featured JD & The Straight Shot alongside singer-songwriters Matt Costa and Matt Hartke. It proved a disappointment for all three acts.
“Sirius was playing the hell out of our music,” recalls Dolan. “And we’d still end up with 30 people in the room. That was a good night sometimes.”
Dolan is thinking about possibly starting a new band with his second-eldest son, Aidan, an accomplished guitarist who shares his own musical tastes and who for a time was a member of JD & The Straight Shot. (Dolan’s eldest son, Charlie, is the bassist for TAUK, a progressive rock fusion band.) Amid the coronavirus crisis, Dolan is weighing his options. With or without The Straight Shot, it’s a safe bet he will find an outlet for his need to make music.
EVEN BEFORE DOLAN formed his band, MSG employees knew they had a musician for a boss. As recounted in a story in Sports Illustrated, in 2000, Dolan put together a makeshift band at a corporate retreat in Florida and serenaded the Garden’s then-president Dave Checketts with a “Born to Run” parody: “Dave, this company rips the bones from your back/It’s a death trap, it’s a suicide rap/You should have got out while you were young/Because I have something to tell you/I’m Chuck Dolan’s son!”
Chuck Dolan’s son. Those three words defined James Dolan for his first decade at the helm of Cablevision. Charles Dolan, who at 93 still lives next door to James in Oyster Bay, Long Island, is something of a legend in the cable TV industry. A college dropout from Cleveland, Charles moved to New York in 1952 and became one of the first to see the potential of cable TV, then a relatively new technology. In 1965, he was awarded the franchise rights to wire Lower Manhattan and founded the network that became HBO, which he sold to Time Warner in 1973. That year, he also launched Cablevision with 1,500 customers on Long Island. By the mid-1990s, Cablevision had 3 million subscribers in 19 states. Charles was known for his outward gentility and inward determination. “Getting cable franchises is very hard,” says a family friend. “Chuck is very gracious and philanthropic, but nobody should suggest he isn’t tough.”
James, his youngest son, had musical ambitions. At 15, he mowed lawns to raise the $200 he needed to buy a used Gibson J‑50 guitar. Though his mother, Helen, who also is still living, played piano and cello, his parents were “not very enthusiastic about my music when I was a teenager,” says Dolan. He took music courses at SUNY New Paltz but switched his major to communications after considering his prospects as a musician.
“I was taking guitar lessons from a guy who was really good,” recalls Dolan. “He also played pedal steel and sang — all the things I wanted to do. He was charging me $5 for my guitar lessons. And I realized it was going to take me 10 years to get as good as this guy so I could give $5‑an-hour guitar lessons. I mean, that is the nature of the music business, isn’t it? You’re not rewarded for your proficiency like you are in other industries.”
Dolan joined his father’s company three days after graduation and started learning the business from the ground up. He trimmed trees to clear the way for cables, sold subscriptions and knocked on the doors of deadbeat customers. Charles sent him to Cleveland to manage a family-owned sports radio station. Little by little, over 20 years, Charles groomed James to succeed him as the head of the company. Why James and not his two older brothers or three younger sisters? Charles has explained his decision exactly once, over 20 years ago, in an interview in the Long Island newspaper Newsday: “Mostly, it was because nobody else wanted it,” he said.
James was a hard worker, but it became increasingly apparent that he was also an alcoholic and drug addict. In August 1993, a few months after his 38th birthday, he hit bottom. Charles put his son on a plane and sent him to the Hazelden clinic in Minnesota. Dolan is open about his past substance abuse and says he has been clean and sober since his treatment there. He believes his recovery taught him to be true to himself. His band’s name, The Straight Shot, is “sort of a reference to drinking and honesty,” he says.
In 1995, James was promoted to CEO of Cablevision. Charles was chairman. No one doubted who was in charge. Cablevision gave a news conference in March 1997 to announce that it had bought out ITT’s majority ownership of Madison Square Garden, which the two companies had jointly purchased three years earlier. Throughout the entire presentation, James sat mute. When a reporter for Newsday tried to question him afterward, he glanced nervously at his father and muttered, “As Dad said…”
Overshadowed by his father, James Dolan seemed to be looking for a way to distinguish himself outside the family business. His sister Deborah had done precisely that by becoming a champion horse jumper. James had started racing yachts in the 1980s, and by the 1990s, he was competing in regattas around the world, having assembled a topflight sailing crew. He wanted to win, not merely as a crewman but as the skipper, and he steered his own boat. The big win never came. Dolan’s last race, from Newport, R.I., to Bermuda on a yacht called Encore, was in 2002, after which he quit the sport. Three years later, JD & The Straight Shot released its debut album, Nothing to Hide.
The year proved to be a turning point in his career. Cablevision had always been a family business and, more specifically, Charles Dolan’s company. But James and the board were losing patience with Charles’ futuristic pet project, Voom, which beamed high-definition TV programs to subscribers via a satellite the company had launched in 2003 from Cape Canaveral, Fla. The technology was sound; a four-star review in CNET rated Voom superior in picture quality compared with its larger competitors, Dish Network and DIRECTV. The problem was the cost: In its first year, Voom burned through $660 million.
By December 2004, James was in a bind. With a projected loss of over $1 billion and no end in sight, Voom no longer had the support of the board or James himself, and he had to break the news to his astonished father. In January 2005, the board voted to sell the satellite to EchoStar. Charles fought back — and lost. On April 30, Voom officially ceased operations. The internecine struggle caused deep divisions and hurt feelings inside the Dolan family, but Charles never publicly criticized his son. (Those wounds have long since healed. During the third Zoom interview for this article, which was conducted from Dolan’s home, Charles made an unscheduled appearance. James regarded him adoringly and said, “Everything I do that’s good is attributable to him.”)
While challenging his father, James was waging a separate battle against New York City Mayor Michael Bloomberg. The New York Jets, whose home base was the New Jersey Meadowlands, wanted to build a stadium on Manhattan’s West Side, only blocks from Madison Square Garden. Bloomberg lauded the project and offered to contribute $600 million of taxpayer money. He believed the new stadium would pay off in jobs, tax revenue and urban development, and give the city a shot at hosting the 2012 Summer Olympics. Dolan was hell-bent on stopping construction. He bankrolled an anti-stadium civic group and pumped upward of $12 million into TV and radio attack ads, accusing Bloomberg of wasteful spending.
Dolan prevailed. In June 2005, only weeks after his decisive win in the boardroom showdown with his father, the West Side stadium was pronounced dead.
The stress of the year was tremendous, and perhaps it was no coincidence that in October, Dolan underwent heart bypass surgery. But he was his own man at last. His then-friend Harvey Weinstein, in an interview for New York Magazine, called the double victory “Jim’s defining moment” and his “coming-out party.” Dolan would emerge from his father’s shadow once and for all a decade later, when he orchestrated the $17 billion sale of Cablevision to European telecom giant Altice, shedding the family’s core business. James Dolan was no longer simply Chuck Dolan’s son.
Since then, two other words — “Knicks owner” — have, unfortunately, come to define him negatively in the eyes of the public. Often overlooked is that despite the team’s losing streak, the Knicks, which Cablevision bought in 1997 for $300 million, has a market valuation (as calculated by Forbes) of $4.6 billion, the highest in the NBA.
Indeed, until the pandemic, Knicks fans reliably filled the Garden, disgruntled or not. A key reason was Dolan’s three-year, billion-dollar renovation of the venue that rebuilt much of the interior by the time it was completed in 2013. The costly project, which the company dubbed “the Transformation,” was greeted with apprehension, and Dolan has never received due credit for ignoring the naysayers and pushing ahead. His decision to pull the plug on Voom also looks good in retrospect. And considering the decline of cable in recent years, his sale of Cablevision to Altice could hardly have been better timed.
The well-considered criticism of James Dolan as the head of a large public company is his temperament. He can erupt with anger, and he scares people who work for him. He pays his executives well but burns through them. Madison Square Garden had three CEOs — Hank Ratner, Tad Smith and David “Doc” O’Connor — between 2009 and 2017, after which Dolan assumed the CEO title along with his existing title of executive chairman. Formerly a managing partner of Creative Artists Agency, O’Connor was concerned about what he perceived as a “culture of fear” inside MSG, a description he used at town hall meetings for employees. (A defender of Dolan says, “Jim’s a very smart man, and when he says, ‘I want X, Y and Z,’ and you bring him A, B and C, there’s a line of frustration. And sometimes, unfortunately, you do get to that point of breaking because no one’s listening. It’s like, ‘Hey, class! Pay attention!’ That’s the way Jim talks.”)
Dolan expresses no regrets in having taken over the stewardship of the company his father founded, though he acknowledges that had he stuck with majoring in music at SUNY New Paltz in the ’70s, “it would have been a very different life for me.” Some observers, while recognizing that he has proven himself capable, question his decision. “I never saw an unhappier executive than Jim Dolan,” says a former Cablevision board member. “He’s happy when he’s playing music. His sister Debbie followed her passion. I never could understand why Jimmy didn’t simply follow his.”
TWO THOUSAND AND FIVE was also a milestone year for the man who would help give Dolan his first real taste of musical stardom: Irving Azoff. Azoff had been a big deal in the music industry since the 1970s, when Rolling Stone dubbed him “rock’s most influential mega-manager.” (The magazine also called the five-foot-three Azoff “Big Shorty.”) He had started Front Line Management with the Eagles, Joe Walsh, Dan Fogelberg and REO Speedwagon, and picked up numerous other star clients before taking a detour to run MCA Records and then Giant Records for Warner Music Group. By 2001, he had returned to talent management full time, with the goal of vastly enlarging his artist roster by buying up other management companies. Four years later, Front Line received a $200 million infusion from private equity firm Thomas H. Lee Partners, giving Azoff the capital he needed to create his management powerhouse.
Azoff has a nasal tenor voice that can rise to a full-throated roar when his anger is aroused, although in contrast to Dolan, his tantrums are often calculated. His reputation for bending the truth — something he has more than once admitted — has earned him the nickname Swerving Irving. Azoff is a strategist, a deal-maker gifted with a remarkable memory; a man who can either charm or terrify those with whom he does business. He has the bearing of someone less interested in the art of music than the art of conquest. He once made a T‑shirt for his employees emblazoned with the words “He who dies with the most toys wins” on the front. The back read, “Irving wins!”
Azoff is now 72, but as a younger man, he was notorious for his rock-star antics. He was kicked off airplanes for starting food fights and once bought Joe Walsh a chain saw to carve a passageway between adjoining hotel rooms. On another occasion, he and a client were watching Johnny Carson and decided the talk show host looked thirsty; they poured water down the back of the TV set until it exploded.
From his earliest days in the business, Azoff has delivered for his artists, who appear to adore him. Given a choice between having a fan or a killer for a manager, most performers would choose the latter. Dolan is more of a fan; he speaks of his musical idols — Eric Clapton, the Allman Brothers Band and Little Feat, among others — with reverence.
By the time Azoff and Dolan were formally introduced in May 2008, Front Line was managing over 100 acts, including the Eagles, Van Halen, Christina Aguilera, Neil Diamond, Fleetwood Mac and Steely Dan. Dolan was immediately taken with Azoff. “Jim loved everything Irving could bring him,” recalls a music executive with ties to both men. “Irving could introduce him to his idols. Despite his profile in New York City, Jim didn’t have deep relationships with the music community, and he wanted that.” Less than a month later, MSG bought 10% of Front Line. MSG sold its shares for a profit that same year to Ticketmaster, the world’s largest ticketing company, which bought a controlling interest in Front Line. Then, in February 2009, Ticketmaster merged with Live Nation, the world’s largest concert promoter, creating the behemoth Live Nation Entertainment. Azoff was made chairman of the combined company.
Azoff never gave up his first business — managing talent — and in late 2009, his relationship with Dolan solved a problem for an important client, Don Henley of the Eagles. Henley was embarking on a solo concert tour to cities as far flung as Boston, Chicago and Windsor, Ontario, but as a solo act, his ticket sales did not justify transportation more costly than a tour bus. “So Irving says to Don, ‘I can get you a private plane, but you’re going to have to let Jim Dolan’s band open for you,’” recalls an insider. “Jim had the Gulfstream. Don said fine. Don gets on the plane, and from the back, he waves at Jim. That’s how the tour went.”
Dolan may not have struck up a friendship with Henley, but he grew close to the Eagles’ Joe Walsh, a fellow recovered alcoholic and drug addict. Walsh appeared as a guest artist on JD & The Straight Shot’s Right on Time album and produced the band’s 2014 release, Where I’ve Been. “Joe and I hit it off,” says Dolan. “As a producer, he pushed us pretty hard: ‘That wasn’t tight enough.’ ‘Rework that solo.’ He must have made me do a thousand frigging vocal takes for some of the songs. But in the end, we were proud of what we did.”
Azoff was not having quite as much fun as chairman of Live Nation, and on the last day of 2012, he resigned, declaring in an interview with The Wrap that running a public company “sucks if you’re an entrepreneur.” He cashed in his Live Nation stock, and a handful of marquee clients followed him from Front Line, which he no longer owned, to Azoff Music Management. Dolan made his move. Within months, the Madison Square Garden Company put out a press release announcing the advent of Azoff MSG Entertainment.
AZOFF’S INFLUENCE over Dolan extended beyond music. At a 2013 Christmas party at his home, Azoff introduced Dolan to Phil Jackson, the former coach of the Los Angeles Lakers. Three months later, Jackson had a five-year, $60 million contract as president of the Knicks. The contract was terminated early after the Knicks set franchise records for straight losses.
A rabid Lakers fan, Azoff had in 1999 seen his favorite team depart its longtime home, The Forum in Inglewood, for the new Staples Center in downtown Los Angeles. The move cost The Forum dearly. In its glorious past, the venue had hosted concerts by the likes of Elvis Presley, Jimi Hendrix and The Rolling Stones. Since the loss of the Lakers, it had fallen into decay. In late 2000, the Faithful Central Bible Church purchased the building. In 2009, Azoff’s friend Jerry Moss, the co-founder of A&M Records turned philanthropist, was looking for a place in Los Angeles to set up a free medical clinic. “Irving suggested I call the church, and I did,” recalls Moss.
Azoff soon learned that the church administration was struggling to pay the mortgage on the building. The Forum could be purchased inexpensively, perhaps at a foreclosure price. The cost of renovation was another matter. Azoff, then the chairman of Live Nation, tried to persuade his board to buy and restore the historic arena. Two independent sources believe Azoff’s real motive was personal. Live Nation’s biggest rival, Anschutz Entertainment Group, owned the Staples Center, and at the time, Azoff was feuding with AEG chief executive Tim Leiweke. (Leiweke has since become Azoff’s partner in Oak View Group.) “Irving thought the best way to hurt Tim was to get The Forum,” proposes one source. (Through a spokesman, Azoff disputes that account.) The Live Nation board opposed the purchase. So in 2010, Azoff brought the idea of buying The Forum to Dolan. “He got very excited,” recalled Azoff eight years later in his deposition for the Clippers lawsuit.
Meanwhile, in 2010, James T. Butts Jr., the former chief of police of Santa Monica, Calif., ran for mayor of Inglewood. The small city — about nine square miles, with a population of roughly 100,000 — was not flourishing. “We had a Sizzler, a Big Donut and an $18 million structural deficit,” recalls Butts. He immediately saw the value of the Forum project. Azoff opened up his home to throw a fundraising party for the candidate. JD & The Straight Shot provided live music. Butts narrowly won the election.
MSG purchased The Forum in June 2012 for $23.5 million, about $4.5 million above the foreclosure price. (Butts says he insisted that the church make back what it had originally paid for the building.) A former top officer at MSG claims Dolan told him in a private conversation that Azoff had been invited to invest his own money in The Forum, and that Azoff had declined. (Through a spokesman, Azoff denies receiving such an invitation. He does not dispute that he made no investment.)
The lack of any ownership did not prevent Azoff, with Dolan’s consent, from treating The Forum as his fiefdom. In 2015, when David “Doc” O’Connor became president/CEO of the Madison Square Garden Company, says a well-placed source, “Doc learned that Irving had no financial investment in The Forum. It was 100% an MSG asset, and he thought as CEO he needed to run it.” To O’Connor’s surprise, says this source, “Jim told him, ‘You know what? You’ve got plenty to do in the company. Leave The Forum alone.’” Dolan reasoned that Azoff and his associates worked on the West Coast and were better equipped to oversee the asset. It was yet another example of his unwavering faith in Irving Azoff.
That faith was not altogether misplaced. Under the auspices of Azoff MSG, The Forum underwent a renovation that was more of a rebirth. The scoreboard was ripped out and the locker rooms replaced with plush dressing rooms and lounges. The exterior was painted California sunset red, the hard plastic seats removed for high-back upholstered ones. No element of décor, from the selection of the rugs to the fabric on the walls, was overlooked. Once The Forum opened, Azoff “fought very hard to get the bookings” to make the arena a success, says a former top manager at MSG. Since 2018, the building has been the world’s third-highest-grossing concert venue with a 15,001-plus capacity, after Madison Square Garden and London’s O2 Arena. “On the other hand,” continues the source, “Irving didn’t run The Forum very efficiently.”
The lack of a clear management structure at The Forum created its own problems. A number of key managers left, complaining of a dysfunctional work environment. In the end, MSG paid out-of-court settlements totaling millions of dollars to at least half a dozen aggrieved employees.
Even the high attendance at The Forum came at a cost due to the lack of adequate parking. Mayor Butts was promoting economic growth in Inglewood, and available land was becoming scarce. MSG worked out a deal to lease a portion of land within walking distance to the venue that real-estate billionaire Stan Kroenke had purchased in Inglewood’s Hollywood Park section for large-scale development. Kroenke charged MSG $25,000 per night. After MSG ran up an unpaid bill of $325,000, he imposed a lockout.
Butts stepped in and negotiated a barter deal between Kroenke and The Forum. The parties would use each other’s parking lots for free when otherwise unoccupied. Butts recalls it took “at least five” tries to clinch the deal. As Azoff stated in his deposition for the Clippers lawsuit, “Mr. Dolan and Mr. Kroenke…are not the best of friends.” Butts found additional parking for Forum patrons wherever he could — at a high school and even at a cemetery where his own mother was buried.
Butts’ intervention alleviated The Forum’s parking problem, and he wanted something in return. MSG had been leasing land off West Century Boulevard in Inglewood, about a mile from The Forum — and used it perhaps twice. With Azoff’s blessing, Butts got the land back to sell to a buyer whose identity was shielded, said the mayor, by a confidentiality agreement. On June 15, 2017, the purchaser’s name was revealed to be Steve Ballmer, the billionaire owner of the Los Angeles Clippers basketball team. The land would be used to construct an 18,000-seat sports and entertainment arena. Dolan did not take the news well — “to say it mildly,” testified Azoff in the resulting lawsuit.
Azoff further testified that he was so “embarrassed” by the Clippers deal that “I offered my resignation to Dolan.” (Azoff was referring to his work with The Forum. He was not offering to resign from a consulting arrangement with MSG that paid him an annual $2 million. In any event, the resignation offer was declined.) “I’ve never been blindsided like this before in my entire career,” Azoff recalled telling Dolan. His blunder would have been inconsequential had MSG not failed to protect its turf. Its development agreement with Inglewood contained no exclusivity clause that would have barred a competing arena from being built within city limits. When relinquishing the land, MSG could have negotiated terms for its subsequent use, but neglected to do so, and it did not exercise an option to buy the land for $6.9 million, a fraction of what it would be worth today, even without the Clippers deal.
Butts has been criticized for his secret negotiations with the Clippers, but he was under no legal obligation to reveal confidential information that could have cost his city a significant asset. Because of the lack of a noncompete clause in the agreement between MSG and Inglewood, the company’s breach-of-contract lawsuit against the city and its mayor largely depended upon a fraud claim. Azoff insisted that Butts had promised him that the West Century land would be developed into a technology park, although he admitted in his deposition that he had not a shred of proof to support that — not so much as an email or a text message.
Butts is still angry. “I never told Irving Azoff I was going to put a technology park there,” he says. “That’s a total canard. The lease termination was a real-estate deal that I negotiated for the city. On the other side is a multibillion-dollar-valued company,” he says, referring to MSG. “They could have put in a right of first refusal at any time. If I were a white person, they wouldn’t be embarrassed to admit they negotiated poorly. But because I’m Black, I must have tricked them.” Butts has not forgotten the effort he invested in finding a parking solution for The Forum. “And my reward for that was to get sued — not just as a city official, but personally, in an attempt to intimidate me,” he says.
Ballmer — whom Azoff referred to in emails as “Ballz” — needed to have his new stadium built by the end of 2024, when the Clippers’ contract with the Staples Center was set to expire. MSG’s lawsuit may have been calculated to delay the stadium to death — one of the strategies that Dolan had employed with the Jets and Mayor Bloomberg in New York.
Dolan appeared to be sticking by that playbook. In 2005, MSG had funded an anti-stadium community group. This time around, a group called IRATE — Inglewood Residents Against Takings and Evictions — filed lawsuits challenging the legality of the Clippers’ stadium on the grounds that secrecy about the intended buyer violated California’s open-meetings law, known as the Brown Act. Attorneys for Inglewood alleged in a pretrial motion that IRATE was a front group created by and acting for MSG.
In 2018, as the lawsuit dragged on, Butts ran for reelection and found himself facing an improbable opponent: Marc Little, a sports and entertainment attorney who had been a pastor for the Faithful Central Bible Church and was a signatory to MSG’s purchase of The Forum. Little, a religious conservative running in a liberal city, had amassed nearly $1 million in campaign contributions from MSG, Dolan, Azoff and such Hollywood players as David Geffen, then-NBCUniversal vice chairman Ron Meyer and Kris Jenner — an enormous war chest for a mayoral candidate in a town that small. Butts still crushed Little and his other opponents in the 2018 election.
A week later, on Nov. 13, 2018, Dolan gave his deposition in the Clippers lawsuit, which was recorded on video. He proved a surly witness with an inattention to detail. It was one year to the day since David “Doc” O’Connor had been forced out of MSG — most likely for his strenuous opposition to the Sphere project — yet Dolan was unable to recall his ex-CEO’s name. He was unaware that MSG’s development agreement for The Forum granted no exclusivity. “I’ve never looked at the agreement,” he said.
Louis R. “Skip” Miller, the lead attorney for the city, pressed him. “Did you ever read contracts, important contracts your company entered into after you became the head of the company?”
“No,” replied Dolan.
“So in the 16 years you’ve been the top officer of the company, the chairman of the board, you’ve never read an important, material contract that your company entered into?”
“No,” reiterated Dolan.
“OK,” said the attorney. “That’s certainly going to shorten the deposition a little bit.”
“Good,” said Dolan.
Miller seemed incredulous. “I can’t wait to show this video at the trial,” he said.
There would be no trial, however. Earlier this year, on March 24, Ballmer unveiled plans to buy The Forum for $400 million; the purchase was completed May 4. His agreement requires him to maintain the venue and its staff until a contractual sunset date, which has not been disclosed. After that, should he choose, Ballmer can raze the historic building. “My suspicion is that Steve will fall in love with The Forum because it’s hard not to,” says Dolan. Selling it, he adds, “was, businesswise, the right thing to do. But heartwise…”
Given the distinct possibility that the Clippers arena could not have been stopped, the sale of The Forum seems logical. Dolan’s generosity toward Azoff has puzzled some of the insiders who knew about it even before it was disclosed in an SEC filing. The agreement Dolan made with Azoff — a handshake deal rather than a written agreement, according to pretrial testimony in the Clippers lawsuit — granted Azoff 25% of the profit of any sale of The Forum over $200 million. MSG made a similar-sounding deal with Azoff, to share in the upside of the sale of certain unspecified Azoff Music businesses. (Through a spokesman, Azoff insists the two deals were entirely unrelated.) MSG’s upside deal with Azoff expires Oct. 8, and to date, it has amounted to naught. Azoff, for his part, ends up $48.7 million richer.
“My personal belief is that a $50 million high-five is something the stockholders should be very interested in,” says Andrew Holmes, a partner at the law firm of Holmes Taylor Cowan & Jones and a former SEC investigator, who was asked to comment on Azoff’s take. And not only the stockholders: Azoff’s payout translates to nearly $122,000 for each of the 400 employees MSG is now letting go. Azoff has made no public statement about the MSG layoffs, but in the July 22 edition of Pollstar, a publication his company owns, he said he was “disappointed to see the big layoffs at AEG,” adding, “The owner of that company [Philip Anschutz] is one of the richest men in the world; what’s he saving, $10 [million]-$20 million by laying off all these people?”
Dolan defends Azoff’s “not insubstantial” payment. “I don’t want to get deep into it,” he says. “Let me put it this way: He most definitely deserved what he earned at The Forum because without Irving, it would not have been a success.”
THE FORUM REMAINS the only arena-size venue in the United States with no sports franchise. The MSG Sphere in Las Vegas will be the next. Dolan could have gone a different way. Indeed, former MSG CEO O’Connor had urged him to finance the venue development and investment plans of Oak View Group, the partnership between Azoff and his former rival Tim Leiweke. Oak View’s projects include the Climate Pledge Arena in Seattle, along with other sports and entertainment venues in Manchester, England; Palm Springs, Calif.; Milan; and elsewhere. Dolan wouldn’t hear of it — the cost of those projects would have ruled out his investment in the Sphere. Oak View is today supported by financing from private equity group Silver Lake.
Dolan confirms that his “divergence” with Azoff — as he terms it — came down to a difference over “resources and vision.” He says, “If the Sphere is successful — which I believe it will be — it will totally change the venue business.” The large venues being built today, he continues, “are all dual-purpose. Sports and entertainment. Inside of that compromise, you lose something big. And I think The Forum proved that somewhat. The Sphere will really prove it. If it’s successful, we’ll be building a lot more. We need Irving’s expertise — all those artists and everything. But the Sphere is a whole new platform. And that’s not the business that Irving’s in.”
The MSG Sphere is Dolan’s futurist dream project much the way Voom was his father’s. Because the Sphere is not being constructed on a fixed-bid contract, there is no telling what it will cost to complete. (The official company estimate is $1.66 billion, but the on-and-off work stoppages caused by the coronavirus crisis could easily augment that figure.) The Dolan family has traditionally held a minority position in MSG but a majority of the voting stock. Should James ultimately face resistance from his family and board of directors over the rising cost of the Sphere, he will, in a most ironic way, be following in Charles Dolan’s footsteps.
To be sure, Jim Dolan’s high-tech venture is more of a groundbreaker than his father’s was. While Voom was a late entry into an existing market, the world of entertainment has never witnessed a fully immersive experience on the scale of the Sphere. The interior bowl of the Las Vegas arena will hold the highest-resolution LED screen on earth, to display both live-action and computer-generated content. Beamforming technology, a means of transmitting sound with laser-like precision, will target each individual audience member, putting every guest, in the words of a corporate press release, in the auditory “sweet spot.” MSG Ventures, a live-entertainment technology division, was launched in 2016 as an adjunct to the Sphere; in September, the division will open a Burbank, Calif., studio to help artists create visual content to go with their music.
No one doubts the MSG Sphere will be spectacular, but its success may depend as much on nonmusical events, such as esports tournaments, as musical ones. (Dolan says MSG Ventures has a subdivision for mass gaming.) The Sphere will have about the same seating capacity as The Forum — but unlike the latter, it won’t be suited to touring bands. “You won’t have someone coming in for a day and then leaving because there’s no sense playing the Sphere without using the immersive media,” says Dolan. Instead, he is counting on residencies, an arrangement that has served him well before; until the pandemic hit, Billy Joel had a monthly residency at the Garden for six years running.
The Vegas entertainment scene is already largely built on music residencies. Dolan believes he can lure talent away from other venues. “The Sphere will give the artist a whole other palette to work with,” he says. “Music creates imagery in the mind. Now the artist will have the ability, more than ever before, to create imagery around their music. If it’s Sting and he’s singing about saving the Earth, we can put him in the middle of the Amazon rainforest. If it’s a spacey rock song, we’ll put you on Mars.”
FOR THE MOMENT, no one is going anywhere. As the pandemic rages on, the two public companies created from Madison Square Garden’s mitosis in April, MSG Sports and MSG Entertainment, are essentially idle.
Dolan, whose public approval ratings were at their highest after 9/11 when he organized The Concert for New York City, was hoping he could reopen Madison Square Garden this year — at least for one night. He had an idea for a COVID-19-related benefit show at the Garden, accessible to anyone who passed an antibody test his company would administer for free. Dolan’s plan tanked when he couldn’t get government approval.
“They won’t let us do it,” he says. “I spoke to all the people on the state level, all the people on the federal level. I went to Washington. I argued why the city needed this, the country needed this, and it would be a great way to lift everybody’s spirits. And I just got stonewalled.”
Dolan is straining with impatience — not just as a businessman, but as a musician. After making the tough decision to cancel the Rockettes holiday show, he started writing a wistful new song called “Nobody’s Coming for Christmas.” He says, “I miss playing for people. And I miss my old bandmates. I’ll just keep writing and waiting for a chance to get everybody in the studio. Maybe we’ll do one more record. All I have to say is, I’m picking up my guitar again and giving it another shot.” ♦