Observer » Charles Dolan

Charles Dolan Has Made Nearly $20M in Stock Gains Off the New York Knicks’ Winning Streak

Foster Kamer — Wed, 15 Feb 2012 17:06:34 -0400

If you think sports betting is fun, you should try sports investing.

On Monday, we looked into the publicly-held MSG Entertainment's stock price increase since the New York Knicks' winning streak—and Linsanity—has taken hold.

It looked like this:

And like this:

On Monday, $MSG had closed at $32.28. Trading closed today at $31.91, down from a morning rally that took it to a new high at $32.92. Even at the stock's closing price today, however, the gains made off of Jeremy Lin's entry to the team and their brand new (but already mythologized) winning streak is still great news for $MSG. How great?

Charles F. Dolan—the founder of Cablevision and Madison Square Garden Inc., the director of the company, and father of MSG Chairman and Cablevision President James L. Dolan—holds 6,298,253 shares of common stock in $MSG.

That 11.189% increase the stock gained over the last week has resulted in the value of his holdings increasing by $19.78 Million. James Dolan, by comparison, holds 1,174,092 shares of common stock in $MSG, netting himself a gain of about $3M

The other largest holders and their gains, via Standard & Poor's:

Southeastern Asset Management, Inc. $18.65M
T. Rowe Price Group, Inc. $17.00M
GAMCO Investors, Inc. $10.04M
Clearbridge Advisors, LLC: $8.92M
The Vanguard Group, Inc. $8.59M
Burgundy Asset Management Ltd. $7.63M
Ariel Investments, LLC $7.16M
River Road Asset Management, LLC $7.15M
Dolan, Helen A. (Former Director) $6.12M
BlackRock, Inc. (NYSE:BLK) $5.89M

In light of all that new Knicks money, a reminder of just how much Jeremy Lin is going to make this season from the New York Knicks:

$762,195, or the minimum for an NBA player in his second year.

fkamer@observer.com | @weareyourfek

Game Time: Match the Mogul with His Net Worth!

John Koblin — Thu, 23 Sep 2010 20:05:13 -0400

Forbes came out with its rich people in America list, so let's play a little game among the media set. Here are 5 media moguls, and here are 4 figures that represent their net worth. See how many you get right!

1. Rupert Murdoch

2. Ted Turner

3. Si Newhouse

4. Charles Dolan

5. Barry Diller

A. $1.9 Billion

B. $6.2 Billion

C. $2.5 Billion

D. $1.2 Billion

Answers: (1.B); (2.A); (3.B); (4.C); (5.D)

Note to the Tennis Channel: The Dolans Probably Don’t Care

John Koblin — Tue, 01 Sep 2009 17:59:52 -0400

The execs at the Tennis Channel need a little lesson on how the Dolans work. We're here to help you!

First, a little background. The Tennis Channel is a relatively new, 24-hour tennis network, much in the same style as the NFL Network. They're out here at the U.S. Open and broadcasting matches on the back courts (ESPN2 gets the bigger matches). They even have Martina Navratilova as a color analyst, which makes us nostalgic for HBO's coverage of Wimbledon back in the 90s.

The only problem is not many people can see it. Cablevision subscribers don't have the option of picking it up (unlike Time Warner viewers, who could get it if they shell out a little extra money).

So the Tennis Channel has been taking out ads in the Times and on the radio, with the slogan "Cablevision, Thanks for Nothing!" This ad helped generate some publicity and some low-level controversy when The Tennis Channel tried to buy space in the Dolan-controlled Newsday.

But the Dolans aren't going to be scared off by Poytner Institute journo-ethics handwringers.

A lesson for The Tennis Channel folks: The Dolans love to fight. These are the same guys who, for years, imposed absurd restrictions on beat reporters for the Knicks, and who responded to complaints by making the restrictions even tighter. And their track record of engaging in public fights with fledgling sports channels is well documented.

So bravo and all for running that ad, but it's probably not going to achieve the desired effect. Some people just don't get embarrassed by anything.

Dolans Cutting 5 Percent of Newsday Workforce; More Than Two Dozen Job Cuts Expected in Newsroom

John Koblin — Fri, 05 Dec 2008 17:07:07 -0400

The Dolans are enacting their first big job cuts at Newsday.

In total, 5 percent of the workforce will be reduced with hits on both in the newsroom and on the business side. For editorial, the sports department, photo department and newsroom editors will be hit hardest. The position of sports columnist will be entirely eliminated, which affects three positions.

Newsroom cuts will impact travel budgets and lead to significant cuts in the freelance budget. Editor John Mancini wrote in a memo to staff, "Travel, entertainment and supply budgets have been reduced. Open positions have been eliminated and the freelance budget has been cut dramatically."

The newsstand price of Newsday will increase—how high it will go hasn't been announced yet—starting next week.

We're hearing from a source that the newsroom will cut more than two dozen jobs, and the number circulating around the newsroom is 27 positions. Buyouts will be offered to some.

Mr. Mancini explained, "These decisions will mean further job reductions or will require staffers to move into other job categories. Starting today, we will discuss details with the affected departments and individuals. These circumstances are always difficult. Valued friends and colleagues who did not contemplate making a change will face giving up jobs they have been devoted to for years."

Here's his entire memo:

To: Staff

From: John Mancini

What's Going On

The outlook for revenue requires further expense cuts in the newsroom.

Travel, entertainment and supply budgets have been reduced. Open positions have been eliminated and the freelance budget has been cut dramatically.

In addition, we will be reorganizing Photo, resulting in a significantly smaller staff. We will also eliminate the Sports Columnist category, which includes three staffers, and the research position in Albany. These decisions will mean further job reductions or will require staffers to move into other job categories.

Starting today, we will discuss details with the affected departments and individuals.

These circumstances are always difficult. Valued friends and colleagues who did not contemplate making a change will face giving up jobs they have been devoted to for years.

As always, we ask that the privacy of those who must weigh difficult choices be respected.

Thank you once again for your dedication and effort during these challenging times.

And here's the memo from Newsday publisher Tim Knight:

Dear fellow Newsday Media Group employee,

It is well documented by now that the newspaper industry continues to experience significant upheaval. The current economic difficulties have increased the challenges for newspaper and other advertising businesses, and Newsday is no exception.

When we began our 2009 budget process, we were anticipating a tough year, and since then, the newspaper advertising market has continued to decline. With that in mind, Newsday's executive team has undertaken a thorough review of our plans for the coming year. As a result, we concluded that we need to take some significant steps in order to weather these difficult times and meet the changing dynamics of our industry so that we can continue to grow.

As part of this process, we have had to make some extremely hard decisions about how our business will operate. Beginning next week, like many other papers, we are increasing the single copy price of our daily and Sunday Long Island editions, and both Sunday editions in the boroughs. We are also taking a number of measures to reduce our costs. This includes eliminating most of the open positions from the 2009 budget and cutting back on non-essential internal programs.

Still, unfortunately, we cannot avoid job reductions. Today we posted a notice of union job reductions in Editorial and Operations. Within the next week, there will additional job eliminations across the company. In total, we expect to reduce about 5% of our workforce.

I know the next few days and weeks will be challenging as the resulting operational restructuring takes effect, especially having friends and colleagues leave Newsday. The dedication and professionalism of Newsday employees is always valued, but especially at times like this. I will communicate additional details about our actions and how we will go forward in the coming weeks.

Tim

Araton Asks: Did the Chinese Borrow Their Media Policies from the Dolans?

John Koblin — Tue, 05 Aug 2008 18:18:41 -0400

After a trip to Tiananmen Square, Times columnist Harvey Araton wrote about the media policy for reporters covering the Knicks that the Observer chronicled back in November (quick refresher: reporters were restricted from speaking to a player or an MSG employee without a P.R. person present with a BlackBerry in hand to take notes).

On a trip to Tiananmen organized by the Main Press Center for the Olympics, Mr. Araton learned of a newly installed rule:

On the bus, the project manager of the news desk at the Main Press Center, Wu Kun, aka Roy, announced that there was a new system in place for conducting interviews inside Tiananmen. Something about a day’s advance notice, an application, a sanctioning office with a fax machine.

Knowing that reporters from the New York Times staff had already visited the Square the last two days and had encountered little difficulty in getting people to talk, I asked how new the policy was: Brand new or created-specifically-for-our-group new.

“Two days, I think,” he said.

By time Mr. Araton reached Tiananmen, media organizers lectured about 208 species of flowers that had been planted and then were let loose to walk around. By that point, after sitting in traffic after a long bus ride on a hot, muggy afternoon, he was a little too overheated to test that policy. But he promises: "We’ll go back soon to test the new policy, though, and we’ll find out if the Chinese are as vigilant as [Knicks PR man Jonathan] Supranowitz was until [new Knicks GM] Donnie Walsh hit New York and called off the dogs."

Newsday Says Goodbye, Zell; Hello, Dolan!

John Koblin — Tue, 29 Jul 2008 16:57:09 -0400

Newsday, you're free of Sam Zell!

The $650 million transaction that has brought the Long Island daily into the hands of Charles and Jim Dolan closed today.

It should be cause for grand celebration. But then again, only days after the deal was announced, a Newsday reporter told The Observer, "People are so beaten down here there’s not much of anything that could cause much of a reaction."

Dolans Meet with Pesky Shareholders! ‘Did I Hit You Where It Hurts?’ Asks One

John Koblin — Fri, 23 May 2008 18:48:40 -0400

Yesterday at Cablevision's annual shareholders meeting, Cablevision boss Charles Dolan acknowledged that he's not quite sure what he got himself into with buying Newsday.

"We're very aware of our inexperience with newspapers," he said.

But!

"We plan to consult widely and seek advice from people who have backgrounds and are professionals in the field."

Then his son, James Dolan, got into an entertaining dust-up with an unhappy shareholder. Newsday reports:

Gloria Parker, a Laurel Hollow musician, called on Cablevision to "immediately" give up its pursuit of Newsday because it would "monopolize and cripple vital news coverage on Long Island." Her criticism included "shock" at the Newsday purchase price and a swipe at the management of Cablevision's New York Knicks.

That's when chief executive James Dolan indicated her speaking time was up. "I think you just reached your two minutes," he said.

"Did I hit you where it hurts?" retorted Parker.

Dolan told her, "You don't get to speak anymore," and gave her "one more opportunity to sit down." When she didn't, he said, "Sit down please."

Parker then took her seat.

And remember: it took the Dolans only two days to rankle the masses in the newsroom at Newsday.

The Dolans Officially Bag Newsday for $650 Million

John Koblin — Mon, 12 May 2008 12:55:09 -0400

The Dolans win the bidding for the Long Island daily for $650 million. The deal is structured the way Sam Zell needed it to be--the Dolans pick up 97 percent of the company, while the Tribune company retains 3 percent. Here's the release:

CABLEVISION TO ACQUIRE 97% STAKE IN NEWSDAY MEDIA GROUP THROUGH PARTNERSHIP WITH TRIBUNE COMPANY IN A $650 MILLION TRANSACTION

Returns Newsday to Long Island-based Ownership After Nearly 40 Years

Addition of Complementary Print and Online Assets Provides Unique Opportunities to Grow Cablevision’s Advertising, Subscription and Content-Based Businesses

Bethpage, NY, and Chicago, IL, May 12, 2008 – Cablevision Systems Corporation (NYSE: CVC) and Tribune Company today announced a definitive agreement to form a new partnership through which Cablevision will acquire approximately 97% of Newsday Media Group (“Newsday”). Newsday was valued at $632 million in the transaction, and Tribune Company will also receive $18 million at closing as prepaid rent under certain leases of property used in the business, bringing the total transaction value to $650 million. The partnership will add a complementary print and online media group with diverse, quality local content to Cablevision that generates substantial operating cash flow and that creates opportunities to grow Cablevision’s advertising, subscription and content-based businesses.

Newsday is one of the nation's largest daily newspapers, serving Long Island and New York City. In addition to the newspaper and Newsday.com, Newsday Media Group includes amNewYork, the fast-growing free daily in New York City with an average weekday circulation of 335,000, plus the Star Community Publishing Group of weekly shoppers and Island Publications' portfolio of lifestyle magazines.

Cablevision Chairman Charles F. Dolan said: “Newsday is one of the great names in the history of American journalism and it is both an honor and privilege to return Newsday back to Long Island-based ownership after nearly 40 years. We admire Newsday’s strong editorial voice and reputation for quality as well as its leadership in print and online journalism. We are committed to maintaining Newsday’s journalistic integrity and important position in the marketplace.”

Tribune Chairman and CEO Sam Zell said: “This agreement enables us to maximize the value of Newsday and still retain an interest in this valuable asset. The newspaper has a unique circulation base and a tremendously strong local brand—I expect them to grow and flourish as a result of this new partnership.”

Cablevision President and CEO James L. Dolan continued: “Both Cablevision and Newsday are in the content, customer relationship and advertising business and we see this as a wonderful fit. Adding Newsday Media Group’s superb assets to Cablevision’s portfolio presents a multitude of opportunities: to provide consumers with additional quality content on multiple platforms; expand advertising opportunities for both entities; and attract a larger audience than either company could on its own. We strongly believe Newsday Media Group and Cablevision share the same consumer-focused values, and we look forward to building on our mutual history in the New York area with these wonderful assets under the same umbrella.”

For Cablevision, the Newsday partnership adds a complementary print and online media group with diverse, quality local content in the New York area. The combined company will gain significant opportunities in its advertising-based businesses and subscription-based businesses, while also adding to its content portfolio and enhancing its commitment to the local community. These opportunities include: Marketing Newsday more effectively with the ability to reach directly hundreds of thousands of Long Island households currently served by Cablevision -- the majority of whom do not currently subscribe to Newsday
Providing enhanced news gathering resources and expertise to better serve the New York metro area
Promoting Cablevision’s live sports and entertainment assets through Newsday’s publications, particularly amNewYork, with its New York City circulation of more than 300,000
Offering advertisers a selection among various media outlets that enables each advertiser to most efficiently and effectively target its audience
Using Newsday's expertise in developing innovative solutions for advertisers with its newspapers, magazines and Web sites to ensure the best approach to promoting ad insertions on Cablevision's 70 most popular cable channels
Increasing classified advertising reach through Newsday, Cablevision’s Optimum Homes and Optimum Autos interactive television classified services, and Newsday’s Star (181 shopper editions with a weekly circulation of 2.6 million)
Under the terms of the transaction, Cablevision will have approximately 97% and Tribune will have approximately 3% of the equity in a partnership that owns Newsday. To form the new partnership, Tribune will contribute the Newsday assets, and Cablevision will contribute newly issued parent company bonds with a fair market value of $650 million on the contribution date. Bank of America has provided a firm commitment to provide $650 million of senior debt financing, guaranteed by CSC Holdings, Inc., to the new partnership. Of that amount, Tribune will receive $612 million in cash, an equity stake in the partnership valued at $20 million and another $18 million in prepaid rent under leases for certain facilities used in the business. In addition, Cablevision will provide additional funds to pay certain transaction costs.

Cablevision Chief Executive James Dolan indicated that the Newsday businesses will report to Cablevision Chief
Operating Officer Thomas Rutledge. Banc of America Securities LLC acted as lead financial advisor to Cablevision, and Merrill Lynch & Co. also provided financial advisory services on the transaction. Both Hughes Hubbard & Reed LLP and
Sullivan & Cromwell LLP acted as legal counsel to Cablevision. Citi acted as the financial advisor to Tribune, and McDermott Will & Emery, Sidley Austin and Paul Hastings acted as legal counsel to Tribune.
The completion of this transaction is subject to certain customary closing conditions, including regulatory approval.
The Newsday Media Group Assets

Newsday - provides award-winning news and information, reaching 1.5 million Long Island adults each week

amNewYork- launched in 2003, has quickly become the largest free daily newspaper in NYC with an average weekday circulation of 335,000
Newsday Interactive - includes Newsday.com and other local information sites such as ExploreLI.com and Newsday.com/NZone, the popular high school sports destination. In March 2008, Newsday.com reached 3.2 million monthly unique visitors and delivered over 66 million page views Star Community Publishing -- the Northeast's largest weekly shopper group with 181 editions and circulation of more than 2.6 million
Island Publications -- produces targeted lifestyle magazines including Distinction, Wellness, Parents & Children, LI Weddings and This Month on Long Island

Dolans on the Brink of Owning Newsday

John Koblin — Mon, 12 May 2008 12:13:47 -0400

Later this morning, Newsday should belong to the Dolans.

Their $650 million bid will likely be accepted by Tribune owner Sam Zell later this morning, and the only thing that stands in the way are "minor details," said Charles Dolan in an interview last night with Newsday. The Times reports that Charles and James Dolan were in Chicago two weeks ago talking to Sam Zell, and Cablevision bankers and lawyers are there now hashing out the final terms of the deal.

"I think they're just finishing things and we should hear something shortly," said Charles Dolan.

Tim Arango and Richard Perez-Pena report that Wall Street is baffled with why the Dolans want to own the newspaper. And Mort Zuckerman seems totally satisfied that the paper will belong to them and not Rupert Murdoch. The Journal reports:

For his part, Mr. Zuckerman seemed unfazed by the outcome. Reached at his home Sunday, Mr. Zuckerman said he was taking a piano lesson, adding that his daughter had just expressed admiration for his rendition of Andrew Lloyd Webber's "Memory."

Dolans Buy The Sundance Channel for $496 Million; Newsday Next?

John Koblin — Wed, 07 May 2008 21:01:48 -0400

The Dolans bought the Sundance Channel today for $496 million. And what of Newsday? They still have the leading bid.