The New York Knicks Are the NBA's Most Valuable Franchise
By Rob Perez
Per a report released by Kurt Badenhausen at Forbes.com today, the New York Knicks are the NBA’s most valuable franchise — valued at an absolutely ridiculous $3 Billion.
" The New York Knicks reclaim the top spot from the Los Angeles Lakers after a one-year hiatus, thanks to a new cable deal and the highest premium-seating revenue in the league at almost $90 million. The split of the media and sports assets of Madison Square Garden Company in September precipitated a new media rights deal for the Knicks with the MSG regional sports network. The 20-year pact kicks off this season and is worth $100 million in the first year. We value the Knicks at $3 billion, up 20% and fourth most among U.S. sports franchises behind only the Dallas Cowboys ($4 billion), New England Patriots ($3.2 billion) and New York Yankees ($3.2 billion). "
I’m sure James Dolan is pleased with this valuation, but, you know being $1 billion behind Jerry Jones is just eating at him. Or maybe not, maybe he doesn’t even know because he’s sleeping in his suite during a playoff game again:
Anyways, rounding out the top 5 most valuable NBA franchises:
- 2. Los Angeles Lakers ($2.7 billion)
- 3. Chicago Bulls ($2.3 billion)
- 4. Boston Celtics ($2.1 billion)
- 5. Los Angeles Clippers ($2 billion)
and the bottom 5:
- 26. Charlotte Hornets ($750 million)
- 27. Minnesota Timberwolves ($720 million)
- 28. Philadelphia 76ers ($700 million)
- 29. Milwaukee Bucks ($675 million)
- 30. New Orleans Pelicans ($650 million)
The Forbes article concludes with the hypothesis that the NBA is the healthiest its ever been, financially-speaking:
"The average NBA franchise is now worth $1.25 billion, up 13% over last year on the heels of a 74% gain the previous year after the national media deals were completed. Thirteen teams are worth at least $1 billion, up from just three two years ago. The league’s 30 teams generated $5.2 billion in revenue last season and $900 million in operating profit (earnings before interest, taxes, depreciation and amortization). Both are records. The NBA’s 2011 collective bargaining agreement, which enhanced revenue sharing for poorer small market teams and cut player costs, means that every team except one—billionaire Mikhail Prokhorov’s Brooklyn Nets—turned an operating profit last season. "
Love it or hate it, the NBA is only getting bigger and there appears to be no end in sight.