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Madison Square Garden Sues NHL, Labels It a `Cartel' (Update1)

By David Glovin

Sept. 28 (Bloomberg) -- Madison Square Garden LP, the Cablevision Systems Corp. unit that runs the New York Rangers, asked a judge to block the National Hockey League from seizing control of team-related businesses.

Madison Square Garden today sued the NHL, saying in a complaint filed in federal court in New York that the NHL has threatened to impose ``abusive and outrageous fines'' unless the Garden surrenders control of team merchandising, licensing and advertising.

``The NHL has become an illegal cartel,'' the Garden said in its complaint.

The lawsuit comes as jurors in a separate federal case in Manhattan are deliberating whether Madison Square Garden and New York Knicks coach Isiah Thomas sexually harassed former team Executive Vice President Anucha Browne Sanders.

The Garden says the NHL threatened last week to impose a $100,000 per-day fine, beginning today, until the Cablevision unit gave it ``virtually complete control'' over the Rangers' Web site.

NHL spokeswoman Bernadette Mansur declined to comment.

Madison Square Garden says in its antitrust lawsuit that it seeks to ``establish the appropriate bounds of the NHL's conduct.''

Wants Control

The Garden claims the NHL wants control over business opportunities that should be left to individual hockey clubs. According to the suit, the NHL is asserting authority over team Web sites, licensing agreements and advertising and sponsorship deals.

The Cablevision unit says the NHL, though unable to win a significant national television contract, is making ``unnecessary and disproportionate incursions'' into the local broadcasting rights of teams.

``The NHL has unreasonably restricted a team's ability to distribute its own live games through the team's Web site and/or the Web site of its local television holder,'' according to the complaint.

The Garden seeks a judge's order barring the NHL from interfering in team-related businesses. It doesn't seek money damages.

The case is Madison Square Garden v NHL, 07-cv-8455, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporters on this story: David Glovin in U.S. District Court in New York at dglovin@bloomberg.net.

Last Updated: September 28, 2007 18:01 EDT

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