James Dolan’s MSG threatens to sue Steve Ballmer’s Los Angeles Clippers

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This story requires a little background.

The Forum in Inglewood was best known for decades as being both fabulous and the home of the Los Angeles Lakers, back from the Jerry West era and through Magic’s “Showtime” teams. Then in 2001 the Lakers moved downtown to Staples Center, and after that the Forum went through some rough times. It was a number of things, including a mega church for a while, but mostly it was empty. Then several years ago the Madison Square Garden company (owned by Knicks owner James Dolan) bought the Forum, fixed it up, and started booking it again. Now the Forum is one of the hot major concert/event spaces in Los Angeles again, and it’s about to get a boost because it’s adjacent to where Stan Kroenke is building the new Los Angeles Rams stadium. Hello gentrification!

Now enter Steve Ballmer. The Clippers’ owner wants out of Staples Center and the Lakers’ shadow, so he has proposed to build his new arena in Inglewood in another space adjacent to the Rams stadium — land that MSG used to lease. As you might imagine, Dolan’s MSG is not thrilled — they are already battling with Staples to fill their space, now a state-of-the-art arena is moving in down the street.

In a proxy Knicks/Clippers battle, MSG may sue to Clippers and Inglewood in an attempt to block the new building. Here is what Dolan’s attorney in the case, Marvin Putnam, told the Daily Breeze in Los Angeles.

“The mayor made it extremely clear that he needed that piece of land back for a kind of ‘Silicon Beach,’ ” said Marvin Putnam, a partner with the law firm Latham & Watkins, which filed the damage claim that serves as a precursor to a lawsuit. “They’re attempting to flat-out trick people.”

(Inglewood Mayor James) Butts declined to comment, and there is no proof that he made those statements. But when Madison Square Garden Co. relinquished the parking lease to the city, its approved contract states that the land would not be used for anything that would hurt the Forum’s business, according to documents.

Right now the Clippers and Inglewood are in an exclusive negotiating agreement to come to terms on the sale and plans for the property. Putnam told the paper — and the Inglewood City Council — that if the deal goes forward they will sue to block it.

It’s impossible to say how this will turn out, although as a former government reporter I will say these cases tend to be decided in favor of the side about to spend a ton of money on a new building.