Knicks owner James Dolan is one happy man right now. It’s not that he has any intention of selling the Knicks anytime soon, but just to know what his team his worth I am sure has him smiling. After the Clippers were sold last week for $2 billion dollars, which was a number much higher than it’s actual worth at the moment, people started to wonder how much some of the more high profile teams are worth as well. Dolan got his answer today when it was revealed the team could be worth as much as $3 billion! Hit the jump.
@IamJoeSports
Last week, former Microsoft CEO Steve Ballmer agreed to buy the Clippers from the Sterling family for a record $2 billion. Forbes magazine previously had assessed the team’s value at $545 million. “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.”
Rich Tullo is part of an accounting group that is researching the value of MSG stock. 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.
Reports say the land itself where MSG current sits is worth $2-3 billion itself if the Knicks ever moved!
Odds are that the value will even head higher in the future, regardless if the Knicks team is any good.
