James Dolan Arrives

ITT-Cablevision Deal Reported To Buy Madison Square Garden

The New York Times

By MURRAY CHASS

Published: August 28, 1994

Madison Square Garden and its properties -- including the Knicks, the Rangers and the MSG network -- will be sold to Cablevision Systems, a cable television giant based on Long Island, and the ITT Corporation, executives of a rival bidder said yesterday.

Officials of the Garden's owner, Viacom Inc., did not announce a deal today, but executives of the competing bidder, the Liberty Media Corporation, said they were told they had lost the bidding contest. Viacom acquired the Garden and its related properties when it merged earlier this year with Paramount Communications Inc.

"They said Viacom told them it's a done deal -- it's over," said a New York business executive who also has sports interests and is close to Liberty Media officials.

Although several companies had previously expressed interest in the arena and sports franchises, the final negotiations had come down to ITT-Cablevision and Liberty, which is owned by Tele-Communications Inc., the nation's largest operator of cable television systems.

Cablevision, which would appear to be the operating partner in the deal, has no experience at running a team, although Charles F. Dolan, the head of Cablevision, tried unsuccessfully to buy the New York Islanders from John Pickett last year. Nor has it run a sports arena like Madison Square Garden.