Madison Square Garden Chairman James Dolan benched President and CEO Hank Ratner because he wouldn’t get with a new program to ramp up deal-making, The Post has learned.
Dolan’s desire to do bigger, showier deals to expand his sports and live-entertainment empire diverged from Ratner’s more conservative approach to building the business, sources said.
Ratner, who had been president and CEO since 2009, stepped down from the post last month and was given a new title as vice chairman, along with a seat on MSG’s board. While the two men played nice in public, Dolan was done with his deputy, according to sources.
“[Ratner] was thrown out,” a source close to the situation said.
A spokesman for MSG declined to comment. Ratner couldn’t be reached for comment.
Ratner, who had just overseen a $1 billion renovation of the famed Garden arena, was skittish about spending during the prolonged downturn and didn’t want to borrow money to do splashier deals, according to sources.
MSG’s recent purchase of a 50 percent stake in Tribeca Enterprises, the company that runs the Tribeca Film Festival, underscored his cautious approach. The relatively small $20 million deal was nearly three years in the making, according to sources.
Dolan has been eyeing much bigger targets. He was interested in AEG — which handles concert promotion and manages arenas around the country, including the Barclays Center in Brooklyn — before the sale was pulled last spring, sources said. AEG was expected to fetch as much as $7 billion.
Meanwhile, MSG, whose holdings include the namesake arena, Radio City Music Hall, the New York Knicks and the New York Rangers teams, has no debt and $120 million in its coffers. That cash pile is expected to rise by $266 million with the recent sale of its Fuse music network.
The money is clearly burning a hole in Dolan’s pocket as shareholders are starting to clamor for the return of that cash. MSG is facing more pressure given the proceeds from the Fuse sale to NuvoTV, a group backed by singer Jennifer Lopez.
“Our call is at some point over the next 12 months MSG will move to declare a dividend or buy back shares given the Fuse sale,” Richard Tullo, an analyst at Albert Fried, wrote in a note to clients.
The MSG chairman’s acquisitiveness also reflects the growing influence of Irving Azoff, his long-time ally and business partner, according to sources. Among other things, Azoff manages Dolan’s blues band, JD and the Straight Shot.
In September, MSG threw its weight behind a new entertainment venture with the former executive chairman of concert giant Live Nation, kicking in $125 million for a 50 percent stake in Azoff MSG Entertainment. MSG also agreed to provide as much as $50 million in loans.
Frustration with Azoff’s sway over Dolan was said to be a factor in Ratner’s decision to step aside.
“I just think at the end of the day Irving’s got Dolan’s ear,” said one source. “It was very challenging for Hank.”