Tuesday, October 02, 2007

MSG; Isiah Thomas Found Liable In Sexual Harassment Trial

This case should have never gone to trial because it was a PR nightmare from the outset and the trial only extended and exposed the mess for all the world to see. MSG and Isiah Thomas should have settled this thing out of court. Their failure to do so will cost them dearly.

Both were found liable for sexually harassing Anucha Browne Sanders. Thomas got a victory of sorts since the jury could not agree on whether punitive damages should be imposed against Thomas. The judge ruled that count a mistrial.

MSG wasn't so lucky. The jury found that they could be liable for punitive damages in addition to compensatory damages.

The jury will hear brief arguments on punitive damages before deliberating on what it will cost MSG and James Dolan.

For video reactions, see here.

UPDATE:
$11.6 million. Ouch.
The jury, in federal district court in Manhattan, also ruled that the former executive, Anucha Browne Sanders, is entitled to $11.6 million in punitive damages from the Garden and James L. Dolan, the chairman of Cablevision, the parent company of the Garden and the Knicks.

Of that figure, $6 million was awarded because of the hostile work environment Mr. Thomas was found to have created, and $5.6 million because Browne Sanders was fired for complaining about it. Mr. Dolan’s share is $3 million; the Garden is liable for the rest.

The judge will decide on compensatory damages, covering actual economic harm suffered by Browne Sanders, like back pay and benefits.

Keep in mind that this is the minimum. Sanders is going to get more as a result of the compensatory damages for back pay and benefits.

So, the next question is whether MSG should fire Thomas because of what had transpired. Considering that the team has performed so poorly under his watch, MSG would be justified to give him the boot on those grounds alone. The sexual harassment case and the hostile work environment should be cause for concern for the NBA as well, since the Knicks are in the largest media market and it harms the league's branding opportunities if the team suffers as a result.

Thomas should go.

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