ADVERTISEMENT

Win Or Lose, the Knicks and Lakers Are Worth Billions

548
SHARES
2.5k
VIEWS


Much like home valuations on on-line actual property websites, they’re based mostly on a number of components, together with location, who owns the enviornment the crew performs in, and the crew’s native tv offers. James L. Dolan, the proprietor of the Knicks, additionally owns Madison Square Garden, whereas the Lakers lease the house at Staples Center, which is able to turn into often called Crypto.com Arena on Christmas Day.

If you have two teams, let’s say one owns the building and the other leases it, what I’m valuing is the economics,” stated Mike Ozanian, a managing editor at Forbes who compiles its valuations. “In other words, what are the revenues that the team generates at the building versus its expenses?”

Assets associated to the crew don’t essentially think about, no less than not utterly. In the case of the Knicks, whereas Dolan owns MSG Networks, the regional cable channel that broadcasts video games for the Knicks and a number of different New York-area sports activities groups, that doesn’t determine into the valuation of the crew. However, the income generated from the community does.

Valuators evaluate public data on crew funds, seek the advice of bankers concerned in related transactions, and take into account earlier gross sales and the shortage of the product.

The franchise price modifications, Cuban stated, based mostly purely on “supply and demand against cost and availability of money versus expected cash flows, if any, and expected appreciation.”

In 2014, Forbes valued the Los Angeles Clippers at $575 million. Later that yr, Steve Ballmer bought the crew for greater than $2 billion. Much like when shopping for a home, generally it’s tough to account for simply how keen a given purchaser will probably be.