‘Stars are aligning’ for James Dolan to sell New York Knicks stake amid $9.2bn reveal
· Yahoo Sports
Defeat in game three of the NBA Finals is just a flesh wound for the New York Knicks and James Dolan, whose stock is booming.
The Knicks, a sleeping giant on the court for so long, have awoken. Already impressive commercial and ticketing revenues are swelling as a result.
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Madison Square Garden is estimated to have generated around $20m as the Knicks were narrowly beaten by a San Antonio Spurs inspired by an imperious Victor Wembanyama.
That is a frankly extraordinary sum – and the market thinks so too.
The share price of Madison Square Garden Sports Corp, which houses both the Knicks and the NHL’s Rangers, has reached an all-time high.
Their market cap now sits around $9.3bn, with the Knicks component of MSG Corp accounting for the lion’s share.
Dolan meanwhile wants to spin the Knicks and Rangers out as entirely separate, New York Stock Exchange-listed businesses.
Photo by Dustin Satloff/Getty ImagesSpeaking to Front Office Sports, at least one expert expects that Dolan could sell a minority stake in the Knicks as part of that process.
Jonathan Boyar, president of Boyar Value Group, says: “The stars are aligning for some sort of transaction. This playoff run has shown what the team is worth. People aren’t shelling out $5,000, $10,000, or $50,000 for seats in other cities. That demonstrates to anyone who might want to buy the team just how valuable it is.”
The Knicks’ geography and brand are two of the most important elements combining for an estimated enterprise value of $9-10bn.
Their playoff run – which another expert, Seaport Research Partners analyst David Joyce, says will generate $145m in revenue – will only help to further inflate that number.
A first Championship since 1973 would be a boon for Dolan and, potentially, the investors who bought their shares on the New York Stock Exchange.