Friday, February 6, 2015

The Absurdity that is the New York Knicks




I didn't react to this Forbes' explanation about the New York Knicks high valuation, in the aggressive, offensive way that this YouTuber did.  But I did wonder how in the world can a perennially dysfunctional, oft losing team be the second most valuable in the NBA - at a cool $2.5 billion - just behind the Los Angeles Lakers ($2.6 billion) and well ahead of the Chicago Bulls ($2 billion).  
Revenue: $278 million*
Operating income: $53 million

The Knicks drew the biggest TV audience in the NBA at 163,000 viewers per game on average last season despite their 37-45 record. The teams' operating income fell 45% after missing the playoffs and incurring a $36 million luxury tax bill. *Revenue and operating profit/loss are for the 2012-13 season.
Reference: #2 New York Knicks.

There is something to be said for scores of fans who love their team, no matter win or lose. There is something to be said for the biggest city, hence largest market, that is their home.  There is something to be said for the lore and culture, the moxie and sentiment, even the tragedy that define New Yorkers.


I think this YouTuber is spot on, as far as Forbes' intent with its sardonic explanation.  Of course, there are business underpinnings why the Knicks are worth so much.  But even though he is easily the King of Dysfunction in the Big Apple, maybe James Dolan knows more about how to run a NBA team than many of us give him credit for. 

Boom clap, there it is!  That has to be an absurd thought, isn't it.  You see, Forbes had it right.  Now go read Albert Camus' The Myth of Sisyphus
 

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