James Dolan, president and chief executive officer of Cablevision Systems Corporation was elected to the Live Nation board of directors on Tuesday, according to documents filed with the SEC Thursday.
The addition adds substantial media heft to the company's board. Dolan is also executive chairman of The Madison Square Garden Company, which Cablevision spun off as a separate, public company in 2010. MSG owns such venues as Madison Square Garden, Radio City Music Hall, the Beacon Theater and the Chicago Theater. It also owns sports teams (New York Knicks, New York Rangers, New York Liberty) and media properties (MSG, Fuse).
Cablevision is the eighth largest cable TV provider in the U.S. Its Rainbow Media Holdings subsidiary owns such cable channels as AMC, IFC and Sundance Channel. The company also owns Newsday Media Group, owner of the Long Island newspaper Newsday and other media properties.
To acquire and retain Dolan, the board passed resolutions that waive Dolan's duty to first present corporate opportunities to Live Nation "except in limited circumstances." This refers to the corporate opportunity doctrine. This means that directors, officers and controlling shareholders must give the corporation the right of first refusal for business opportunities rather than take them for themselves. However, Dolan apparently required a waiver to join the board because Cablevision and Madison Square Garden have businesses opportunities that are in line with those of Live Nation.