After the Los Angeles Lakers were sold last year to Mark Walter, valued at a massive $10 billion, the New York Knicks have also received a similar offer. An activist investor, Boyar Value Group, has reportedly shown interest in acquiring majority stakes in the franchise. However, James Dolan earlier cleared his stance on the matter.
If we look closely, there is more in common between the Knicks and the Lakers than we know. The Lakers were run by the Buss family, while the Knicks’ legacy is owned by the Dolan family. MSG Sports, which trades at an enterprise value of $six billion, as per recent numbers, owns the Knicks, who are valued at $7.5 billion (via Forbes).
However, Boyar Group believed that the Knicks’ owner, James Dolan, should consider splitting the company (MSG Sports and MSG Entertainment) or selling the franchise. Jonathan Boyar, President of Boyar Sports Group, said, via Front Office Sports:
“The Lakers sale highlights how cheap MSG Sports is relative to the value of its assets. It’s a clear [comparison]. Both don’t own the arena, both are marquee assets with rich histories in major media markets.”
Boyar Sports Group issued an open letter to James Dolan and said that a spin-off should be considered, as the franchise deserves better valuation on the table. However, Dolan has already made his feelings clear on the matter.
Is James Dolan interested in selling the Knicks?
The Knicks owner, James Dolan, was featured on The Roommates Show with Jalen Brunson and Josh Hart a few months back, where he was asked about the idea of selling the franchise. He outright denied the suggestion and said:
“No. I could pass it on, right? But I could never walk away. … These are one-of-a-kind assets… Everyone loves to hate the Dolans, although we give them more credit than most people”
While investor activism is not that common in sports, the Boyar Group’s suggestion might be considered by the ownership group and shareholders. The activist investor also believed that Dolan had a responsibility to its investors and should seek to improve the team’s value.
Whatever the situation might be, the Knicks are looking great on the court and will look to make another deep postseason run this season.
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