The Knicks don't deserve the absurd tax break they get on Madison Square Garden
For the New York Knicks, the going rate for a win this season is a little more than $2 million. But owner James Dolan probably isn't sweating those costs thanks to a loophole that reportedly saves him more than twice Carmelo Anthony's annual salary.
According to the New York Daily News, Dolan is the beneficiary of a "special property tax exemption" for Madison Square Garden that was worth approximately $48.5 million for the most recent fiscal year.
The tax break has been enshrined in law since 1982, when mayor Ed Koch approved it to keep the Garden's owners from acting on a threatened move to New Jersey. But despite local and state politicians pushing to have the tax break removed, any legislation ultimately has stalled in Albany, keeping the Garden's 34-year (and counting) tax free streak alive.
Two years ago, the New York City Council passed a resolution asking Gov. Cuomo to sign legislation to repeal MSG's real property tax exemption, but Cuomo has gone on the record saying he is not in favor of removing the tax relief. In a recent sign that MSG is trying to bolster its efforts on the issue, one of Cuomo's trusted advisers, Joseph Percoco, left his post as Cuomo's executive deputy secretary in December to work for MSG as a senior vice president.
The Knicks aren't alone here; when the Milwaukee Bucks put together a proposal for their upcoming arena, a provision was included to exempt the team from property tax that would reportedly total $21 million per year in Milwaukee. Dolan's savings, of course, are the result of New York City's much higher property tax rates.
Maybe that explains why Dolan seems so willing to fire and hire front-office staff as if the Knicks were his own personal plaything. Sure, it's a splash in the bucket for the Dolan family's reported $5.1 billion net worth, but it's not exactly chump change. Meanwhile, Knicks fans -- you know, the people paying the bills and helping Dolan generate all his revenue -- are left twisting in the wind. First, they had to watch Derek Fisher get sent packing even though the Knicks were actually watchable in the first half of this season. Remember when Kristaps Porzingis was a thing? Man, those were good times.
"What? Promoting Rambis was a bad idea? Can't hear yooooooouuuuuuuuu."
Fisher, of course, was replaced by Kurt Rambis, who sent the Knicks into a nosedive like it was his job. Except New York doesn't have a draft pick this summer, so tanking doesn't do them any good. Yet for some reason, there are indications that the Knicks might look to keep Rambis. Oh, wait, it's not "for some reason"; it's clearly because Rambis is a stand-in for Phil Jackson, who wants the Knicks to play as if he's coaching them but isn't healthy enough to actually take the job on the bench.
Even Phil isn't safe, however, as reports leaked on Wednesday that Dolan already has Jackson's replacement in mind -- current Raptors GM Masai Ujiri. Would that be a smart move? Sure, probably. Ujiri is really good at his job. But at some point, the Knicks need to stop.
Just stop, JD. Take a few minutes and go do some band rehearsals or something. The most important thing in the NBA after having players with skill is organizational consistency. And until Dolan stops rearranging deck chairs on his perpetually sinking ship, things aren't going to get any better for the Knicks.
But at least mediocrity is tax-free.
