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Madison Square Garden only requested a permit for 999 fans and that was approved by the mayor's office. Dolan was responsible for canceling the watch party that left New Yorkers heartbroken that they could not watch the game outside the Garden.
Mamdani's statement is disingenuous as it was his office that imposed the restriction on fans. Madison Square Garden decided not to proceed as it would not be fair to admit a limited number of fans while turning away thousands of others.