The New York Knicks might be chuckling over the Los Angeles Clippers being recently sold for $2 billion. Because a new report suggests the iconic franchise could be worth up to $3 billion.
According to a valuation from Albert Fried & Company analyst Rich Tullo, the Knicks could fetch 50 percent more at an open auction than Donald Sterling did for the Clippers. Tullo justifies his valuation by referencing New York's historic venue, the highest recorded operating income in the history of the NBA, the largest television market and the increased interest in professional sports franchises.
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. 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.
This $3 billion price tag is a far cry from the $1.4 billion Forbes estimated the Knicks to be worth back in January. Of course, that was well before the whole Sterling scandal went down and forced the 80-year-old to sell the Clippers.
Would the Knicks actually sell for $3 billion right now if put on the market?
Via Bleacher Report