Report: Knicks Could be Worth $3 Billion
The jaw dropping sale of the Clippers has called attention to attention to the steadily increasing value of sports franchises. It also had people asking the question…If the Clippers are worth $2 billion what would franchises like the Lakers or the Knicks be worth.
Well, now we have an idea. Analyst Rich Tullo recently reported that he believes the Knicks could be worth as much at $3 billion.
“While much of the Clippers premium is excessive in our view, we think the bid does suggest the market for iconic sports franchises is robust,” Tullo wrote. “We argue despite the recent sale value, intrinsically the New York Knicks as part of MSG are worth at least 50 percent more than the Clippers because MSG operates a regional sports network and owns its arena.”
Tullo estimated that the Knicks generated more than $100 million in ticket sales this season, which he says was double what he estimates the Clippers did. The Knicks also get 100 percent of the money they make off suites, some leased at $1.8 million a year. Sources tell ESPN.com that the Clippers make no more than 10 percent of suite sales because of their lease with the Staples Center, which is owned by AEG.
Tullo noted that it was his belief that Madison Square Garden was worth $2 billion to $3 billion, with the land alone being worth that even if the Knicks move.
Although the sale price of the Clippers was surprising, this valuation of the Knicks isn’t. As the stock market continues to rebound strongly, so will the price of these sports franchises whose value only stands to increase in the foreseeable future.