Madison Square Garden Sports CEO and executive chairman James Dolan received a contract extension through June 2027, according to a new SEC filing on Thursday.
The deal takes effect July 1 with terms that are “consistent with his current agreement,” per the filing. They include a base salary of at least $1.6 million and an annual target bonus “equal to not less” than 200% of his annual salary. He is also eligible to participate in a long-term incentive program that will pay out an aggregate of not less than $7.8 million.
The deal allows Dolan to serve on outside boards under certain circumstances.
MSG Sports is the publicly traded entity that owns the New York Knicks and New York Rangers, who both just reached the second round of the playoffs, an MSG first since 2013. The Dolan family controls the voting stock of MSG Sports, as well as MSG Entertainment, which owns sports and concert venues, such as Madison Square Garden. Dolan is also CEO and chairman of MSGE. He holds those same titles at Sphere Entertainment, which owns MSG Networks and the $2.3 billion Las Vegas Sphere.
The Knicks ($7.43 billion) and Rangers ($2.45 billion) rank as the second-most valuable teams in their respective sports leagues, but Wall Street values MSG Sports at a steep discount to their private valuations. The current enterprise value of MSG Sports is $5.5 billion.
(This post has been updated in the second paragraph to clarify Dolan’s base salary.)