How much are the NY Knicks Worth? Analyst says up to $3 Billion.
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In the wake of Steve Ballmer's agreement to purchase the Los Angeles Clippers for $2 billion, the value of the other NBA franchises is being re-evaluated. Today, Rich Tullo of director of research for Albert Fried & Co. issued a report on the New York Knicks. His report concluded that the Knicks are worth 50% more than the Clippers. His report further concludes that the Clippers' "true intrinsic value" is only $1 billion, so the floor for the Knicks is $1.5 billion. The top of the range is $3 billion - 50% more than the $2 billion that the Clippers just fetched. The greater value ascribed to the Knicks than the Clippers is counter-intuitive since the Clippers are one of the best teams in the NBA, while the Knicks failed to make the playoffs. The structural advantages held by the Knicks (better city, better TV deal, better stadium deal) as a wholly-owned subsidiary of the integrated Madison Square Garden Company outweigh the detriment of the Knicks' comically bad roster management. Below the fold, I breakdown why the Knicks hold so much more value than the Clippers.
How much are the NY Knicks Worth? Analyst says up to $3 Billion.
How much are the NY Knicks Worth? Analyst…
How much are the NY Knicks Worth? Analyst says up to $3 Billion.
In the wake of Steve Ballmer's agreement to purchase the Los Angeles Clippers for $2 billion, the value of the other NBA franchises is being re-evaluated. Today, Rich Tullo of director of research for Albert Fried & Co. issued a report on the New York Knicks. His report concluded that the Knicks are worth 50% more than the Clippers. His report further concludes that the Clippers' "true intrinsic value" is only $1 billion, so the floor for the Knicks is $1.5 billion. The top of the range is $3 billion - 50% more than the $2 billion that the Clippers just fetched. The greater value ascribed to the Knicks than the Clippers is counter-intuitive since the Clippers are one of the best teams in the NBA, while the Knicks failed to make the playoffs. The structural advantages held by the Knicks (better city, better TV deal, better stadium deal) as a wholly-owned subsidiary of the integrated Madison Square Garden Company outweigh the detriment of the Knicks' comically bad roster management. Below the fold, I breakdown why the Knicks hold so much more value than the Clippers.