If you’ve walked past 4 Penn Plaza recently, you’ve probably felt that energy. It’s not just the steam from the vents or the frantic pace of Midtown. It’s the fact that the New York Knicks are finally, finally good again. But for the suits in the boardrooms and the investors tracking ticker symbols, the "Nova Knicks" and Jalen Brunson’s heroics are just the tip of a very expensive iceberg.
So, how much is the New York Knicks worth?
If you check the latest 2025-2026 valuations from heavy hitters like Forbes and Sportico, the number is staggering. We are talking about a cool $9.75 billion to $9.85 billion. Think about that. Nearly ten billion dollars for a basketball team.
Honestly, it’s a bit of a mind-melt. Especially when you realize James Dolan and Madison Square Garden Sports (MSGS) paid about $300 million for the whole kit and kaboodle back in 1997. That is a return on investment that would make even the most aggressive crypto bro weep.
The Math Behind the $9.8 Billion Curtain
Why is a team that hasn't won a title since 1973 worth more than most mid-sized countries' GDPs? It isn't just about the orange ball going through the hoop. It's the ecosystem.
The Knicks are basically a real estate and media company that happens to play basketball. Their value is carved up into four main pillars, and the numbers are massive. Forbes breaks it down like this: the "Market" itself—just being in New York—accounts for over $4.1 billion of that value. The "Sport" segment (league-wide revenue sharing) is worth about $2.3 billion. Then you’ve got the brand and the arena economics.
💡 You might also like: Huskers vs Michigan State: What Most People Get Wrong About This Big Ten Rivalry
Even though MSGS doesn't "own" the dirt under the Garden in a traditional sense, the arena deal and the premium seating revenue are gold mines. In 2024, the Knicks pulled in roughly $193 million from gate receipts alone. That includes those eye-watering club seat prices that most of us can only dream of.
Revenue vs. Operating Income
It’s easy to look at a $532 million annual revenue and think they’re swimming in Scrooge McDuck gold coins. But owning the Knicks in 2026 is expensive. Between the massive contracts for Karl-Anthony Towns and OG Anunoby, and the looming luxury tax bills, the "profit" (operating income) is actually around $98 million.
- Total Revenue: $532 million
- Operating Income: $98 million
- Player Expenses: $190 million (and rising)
You’ve got to spend money to make money, and the Knicks are currently deep in the "spending" phase. With a total cap allocation of over $209 million for the 2025-26 season, they are hard-capped at the second apron. It’s a high-stakes game.
Why Some Experts Say the Knicks Are Still "Cheap"
This is where it gets weird. How can something worth $9.8 billion be a bargain?
Investment analysts at firms like Boyar Value Group have been banging this drum for a while. They point out that while the Knicks are valued at nearly $10 billion, the parent company, MSG Sports, often trades at a much lower market cap. In mid-2025, while the team was surging, the stock was essentially saying the Knicks and the Rangers combined were worth less than the private valuation of just the Knicks.
📖 Related: NFL Fantasy Pick Em: Why Most Fans Lose Money and How to Actually Win
There’s a "Dolan Discount" at play. Investors are sometimes wary of the management structure, but the assets themselves? They're one-of-one. You can't just build another New York Knicks.
The Lakers Benchmark
In 2025, the Los Angeles Lakers hit a $10 billion valuation after a major stake sale. That changed everything. If the Lakers—who don't even own their arena—are worth 10 yards, what is a team that controls the "World's Most Famous Arena" worth? Many insiders believe if James Dolan actually put the Knicks on the open market today, a bidding war could easily push that price past $11 billion or $12 billion.
Steve Ballmer bought the Clippers for $2 billion a decade ago, and everyone thought he was crazy. Now? He looks like a genius.
The Regional Sports Network (RSN) Headache
It’s not all sunshine and expensive jerseys. The business of watching the Knicks is changing. In early 2025, MSG Sports had to take a 28% cut in rights fees from MSG Networks.
Why? Because the old cable model is dying. People are cutting the cord, and the regional sports networks are feeling the squeeze. This restructuring means the Knicks won't see rights fee increases through the 2028-29 season.
👉 See also: Inter Miami vs Toronto: What Really Happened in Their Recent Clashes
That’s a big deal. Local media rights used to be a guaranteed ATM. Now, the team has to find that money elsewhere—like international sponsorships or the $12.8 million per-game revenue they saw during the 2025 playoff run.
What This Means for the Average Fan
Look, most of us aren't buying shares in MSGS or bidding on the team. But how much is the New York Knicks worth matters to the product on the court.
A high valuation gives the team the "dry powder" to absorb massive luxury tax hits. It's the reason they could go out and trade for a superstar like KAT without blinking at the tax bill. When your franchise is worth $10 billion, a $45 million tax penalty is just the cost of doing business.
It also means the tickets aren't getting cheaper. With an average ticket price hovering around $195 (and that's for the "cheap" seats), the Knicks are a premium product in a premium market.
Actionable Insights for the Savvy Follower
- Watch the Cap, Not Just the Score: If you want to know if the Knicks can keep this core together, track their "Second Apron" status. Being over this limit restricts their ability to trade and sign players, regardless of how much cash Dolan has.
- Monitor MSGS Stock: If you’re into the business side, keep an eye on the gap between the stock price and the Forbes valuation. Activist investors are constantly pushing for a spinoff of the Knicks to "unlock" that value.
- The Media Shift: Keep an eye on the MSG+ streaming app. The team’s future value depends on how many fans they can migrate from cable to their own direct-to-consumer platform.
The Knicks are no longer a laughingstock or a tax write-off. They are a financial juggernaut that finally has the wins to match the wallet. Whether they ever actually sell is anyone's guess, but for now, they remain the most valuable "trophy asset" in the world of sports.
To keep tabs on how these numbers shift with the next TV deal, you should regularly check the MSG Sports investor relations page and the annual Sportico NBA valuation reports which usually drop in the fall.