In today's Knicks news update, the New York Knicks could be worth upwards of $3 billion dollars in the wake of the Los Angeles Clippers fetching $2 billion on the open market from Microsoft CEO Steve Ballmer.
Per Steven Russolillo of the Wall Street Journal, "the Knicks could be worth as much as $3 billion “based on percentage premiums to recent sale prices for franchises such as the LA Clippers, The Bucks, and New Orleans,” says Rich Tullo, director of research at Albert Fried & Co."
Ballmer's $2 billion purchase price for the Clippers was over 300% higher that Forbes' estimated value for the team ($575 million). The Bucks sold for $550 million recently, while the New Orleans Pelicans went for $338 million.
According to Tullo, its the Los Angeles Clippers' sale which signals such a potential sharp increase in value for the Knicks.
“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,” Mr. Tullo stated in a research note on Friday, via Russolillo.
“We argue despite the recent sale value, intrinsically the New York Knicks as part of MSG are worth at least 50% more than the Clippers because MSG operates a regional sports network and owns its arena.”
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