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Dolan tactics questioned as Sanders trial goes on

BY ANTHONY M. DESTEFANO | anthony.destefano@newsday.com

September 18, 2007

When Madison Square Garden Chairman James Dolan heard in late 2005 that one of his executives was asking for more than $6 million to leave her job and settle a sex harassment complaint, he thought it was a shakedown and wouldn't pay her a cent. Instead, Dolan ended up firing her.

But in the very public way things have been playing out in federal court for MSG and the Knicks, some trial observers think it would have been easier for Dolan to have written her a check and be done with it.

Anucha Browne Sanders, the fired director of marketing for MSG, and Dolan and Knicks coach Isiah Thomas are embroiled in a messy federal sexual harassment trial, replete with tales that make the Garden look like one big frat house.

Browne Sanders also alleges unlawful termination, claiming she was fired because she brought her complaint to MSG officials. She is seeking more than $10 million.

Thomas and MSG have denied that Browne Sanders was sexually harassed, saying she was fired because of poor job performance and her interference in an internal investigation of her own harassment complaint.

Dolan's videotaped deposition is expected to be played today in federal court in Manhattan.

"From strictly public relations, it looks terrible," said Ken Sunshine, a PR specialist who isn't involved in the case.

"It is somewhat surprising it has gone as far as it has," Garden City attorney Glenn Franklin, who specializes in sexual harassment cases, said of the suit.

Since the trial began, MSG officials have refrained from comment. "We will stay focused on presenting the facts to the jury and have no further comment" is all MSG has said.

Last week's testimony alleged Thomas verbally abused Browne Sanders with obscenities such as "bitch" and "ho" and had unwanted physical contact with her. Thomas has denied most of the charges but admitted he once tried to kiss her on the cheek. A teary-eyed Browne Sanders told jurors that team captain Stephon Marbury had a sexual encounter after a night of drinking at a strip club with her college-age intern.

Browne Sanders also reportedly has unearthed a book compiled by MSG officials describing sex acts they would like to perform with New York Rangers ice dancers. The Rangers are part of the MSG sports empire.

Added to all that were allegations Browne Sanders made during testimony - which Thomas had denied - that he said "I don't give a -- about the white people," referring to ticket holders.

Whatever the sexual antics of Marbury or other MSG officials' leering behavior, Thomas isn't looking good in this, said Bob Liff, senior vice president of George Arzt Communications, a Manhattan public relations firm.

"The image of the Knicks from the top down is one of arrogance that is not backed up on the [basketball] court, and if you believe Browne Sanders, it damages the front office as well," he said.

In the face of so many bad headlines, why didn't Dolan, MSG and Thomas settle the case? After all, the team gave an $18.5 million buyout in 2006 to ex-coach Larry Brown following his firing on the heels of the Knicks' dismal 23-59 season.

The answer may lie in the fact that Dolan believed from the beginning that Browne Sanders was trying to squeeze the company for a big payout. In his deposition in December, the same one expected to be played today, he said that the $6 million request, which has been characterized as being either a settlement or severance demand, was an effort to "extort" MSG. Browne Sanders threatened to "make a big stink" if she didn't get the money, Dolan testified.

Court records show that Browne Sanders' lawyers dropped the demand from $6.5 million to $5.9 million the last week of December 2005. Browne Sanders' attorneys based those figures on an assumption that she wouldn't be able to duplicate for 20 years the money and position she had at MSG, an assertion the company didn't buy.

What Dolan said finally pushed him to fire Browne Sanders in early 2006 was a report, which he learned from a subordinate during a helicopter ride from his office in Bethpage to Manhattan in late December 2005, that she had tried to undermine a company probe of her harassment complaint by taking statements from her staff, according to the Dolan deposition.

Dolan said he alone decided to fire Browne Sanders.

"All decisions at the Garden I make on my own," Dolan said in his deposition.

But the firing, coming so soon after the harassment allegations, might be suspicious to the jury.

"Oftentimes, retaliation can be a tougher claim to defend," said Bill Nolan, a Cleveland attorney who deals in sexual harassment issues.

No substantive settlement talks were under way, said a legal source familiar with the case who didn't want to be identified.