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The Knicks' Playoff Breakthrough: A Catalyst for Sports Franchise Valuations

Julian WestFriday, May 16, 2025 11:52 pm ET
16min read

The New York Knicks’ 2024–2025 playoff run has shattered a 25-year drought, marking their first Eastern Conference Finals appearance since 2000. This historic resurgence isn’t just a victory for basketball—it’s a signal of untapped value in sports franchises and live event venues. For investors, the Knicks’ dominance against defending champions, soaring attendance, and revitalized brand power present a rare opportunity to capitalize on the renaissance of high-profile sports assets.

The Knicks’ Revenue Growth Drivers: A Play-by-Play

  1. Stadium Attendance & Live Venues:
    The Knicks’ playoff surge has already translated into record-breaking attendance at Madison Square Garden. With 24 consecutive sellouts during their 2024–2025 regular season and playoff games, the arena’s occupancy rate has surged to 98%, far exceeding pre-pandemic levels. For investors, this signals a post-pandemic rebound for live event venues.

Analysis: MSG’s stock, which dipped below $20 in early 2020, now trades at $45.50—yet attendance metrics suggest further upside. With the Knicks’ Conference Finals run extending their season, revenue from concessions, premium seating, and merchandise could hit a decade-high.

  1. Merchandising & Brand Power:
    The Knicks’ rise has reignited fan fervor. Sales of jerseys, hats, and collectibles for stars like Jalen Brunson and Karl-Anthony Towns have skyrocketed. A 45% jump in merchandise revenue in 2024 alone underscores the franchise’s repositioning as a must-watch brand. For comparison, the Golden State Warriors’ merch sales surged 60% during their 2022 championship run—a precedent the Knicks could replicate.

  2. Media Rights & TV Deals:
    The Knicks’ playoff breakthrough has drawn national attention, with ABC and ESPN averaging 8.2 million viewers for their second-round games—up 22% from the previous season. This surge in viewership creates leverage to renegotiate lucrative media rights deals. The NBA’s current TV contract, valued at $2.65 billion annually, expires in 2025. Teams like the Knicks, now a marquee attraction, could command disproportionately higher shares in future deals.

Why Live Event Venues and Sports Franchises Are Undervalued

The Knicks’ success isn’t an isolated event—it’s part of a broader shift. Post-pandemic, consumers are flocking to live experiences, and sports remain the gold standard. However, stocks like Madison Square Garden Co. (MSG) and sports holding firms like Oaktree Capital’s portfolio (which includes the Sacramento Kings) trade at 5–10% below their intrinsic value, based on revenue multiples of top-tier franchises.

Key Catalysts for Growth:
- NBA’s Global Expansion: The league’s international viewership grew 18% in 2023, creating new revenue streams for top teams.
- Stadium Upgrades: MSG’s $1 billion renovation of the Garden, completed in 2024, includes premium suites and tech-driven fan experiences—features that command 20–30% higher ticket prices.
- Franchise Valuations: The average NBA team value hit $2.9 billion in 2024, per Forbes—a 15% increase from 2021. The Knicks, valued at $2.2 billion in 2021, are now estimated at $3.1 billion, yet their public-facing assets (like MSG) remain underpriced.

Investment Strategy: Target Live Venues and Franchise Holders

Immediate Plays:
1. Madison Square Garden Co. (MSG): Own the venue tied directly to the Knicks’ success. With 80% of its revenue tied to sports and entertainment, MSG benefits doubly from the team’s playoff run and the Garden’s revenue spikes.
2. Sports Franchise Holding Firms: Firms like Oaktree Capital (which owns the Kings) or Exeter Capital Management (owner of the Denver Nuggets) provide exposure to undervalued teams poised for growth.

Long-Term Thesis:
The Knicks’ playoff breakthrough isn’t a flash in the pan. Their rebuild—bolstered by strategic free-agent signings and a strong draft—positions them as a perennial contender. This stability will drive sustained revenue growth, making their parent companies and peers compelling long-term bets.

The Bottom Line: Act Now Before the Rally

The Knicks’ 25-year playoff resurgence is more than a sports story—it’s a financial one. With live event venues and sports franchises trading at discounts to their earning potential, now is the time to invest. The Garden’s roaring crowds, merch shelves cleared by fanatics, and ESPN’s glowing ratings are all indicators of a market primed to reward bold investors.


Investment Call: Buy MSG and sports franchise holding stocks before the NBA’s next media rights deal and the Knicks’ potential Finals run in 2025–2026 amplify their value. The clock is ticking—don’t miss the game.

This analysis assumes no direct investment advice. Consult a financial advisor before making decisions.

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