MSG Entertainment sues Wired over hacked data allegations

Madison Square Garden Entertainment Corp. has made good on its promise to sue Wired, reporter Noah Shachtman, and "related parties" over an article published last week. The report alleged the company maintained a database of LGBTQIA celebrities, a claim the venue operator strongly denies.

In a press release, MSG accused Shachtman of using stolen information to build a misleading narrative. The company stated the reporter "combed the dark web, obtained data stolen from MSG by an extortionist hacking group, and cherry-picked fragments of that data to manufacture a false narrative portraying MSG as targeting the LGBTQIA community for discriminatory purposes."

Rather than discrimination, MSG asserted the information was actually used for "further inclusion, including by extending invitations to LGBTQIA support events, identifying sales and sponsorship opportunities, and facilitating charitable donations and community outreach." The company further alleges that Wired and its associates are "knowingly promoting a falsehood" by continuing to push the story.

For investors and the broader live events sector, the lawsuit underscores the mounting reputational and legal hazards tied to corporate data collection. MSG, owned by James Dolan, operates a portfolio of lucrative properties including Manhattan's Madison Square Garden, Radio City Music Hall, and the Beacon Theatre, as well as the Chicago Theatre. Its parent company, Sphere Entertainment, owns and operates the Sphere in Las Vegas. These venues rely heavily on corporate sponsorships and exclusive events, markets where public perception of invasive surveillance can quickly impact revenue.

The litigation unfolds against a well-documented history of aggressive security measures at MSG properties. The company confirmed several years ago that it uses facial recognition technology. Dolan has reportedly used this system to ban his personal adversaries from the premises. Earlier this year, Wired detailed how this same surveillance infrastructure was used to track the movements of a trans woman at the Manhattan arena over a two-year period.

While the legal battle plays out in American courts, the underlying issues resonate in European markets. Data privacy and corporate surveillance remain highly regulated and sensitive topics for European audiences, artists, and regulators, making the data practices of global entertainment conglomerates a continuing area of scrutiny.