Forbes magazine has just released their latest list of most valuable NBA franchises, and the New York Knicks have topped the list. Forbes states that the Knicks are now worth $1.1 billion dollars, narrowly beating out the Los Angeles Lakers, who come in at second with a value of $1 billion.
The Knicks saw the value of their team go up 41 percent over the last year thanks to the ongoing upgrades to Madison Square Garden, higher television ratings and merchandising sales, as well as the success they’ve been having on the court.
According to Forbes, the $980 million renovation currently being done to Madison Square Garden. which will be completed this summer, helped the Knicks generate $243 million in revenue, the highest profit in the NBA. A majority of seats inside the garden have been moved closer to the court thanks to the renovations, which allowed the Knicks to raise the price of season-tickets by an average of 49 percent after the 2010-11 season.
The renovation also gave MSG an opportunity to generate revenue from new advertising opportunities and revamp its luxury boxes, thereby increasing the prices for them. The average NBA team is now worth $509 million, up 30 percent from last season, says Forbes.
The Knicks ranked second in the NBA valuation last year, behind the Lakers. They were worth $780 million, according to Forbes.