Surprisingly, the New York Knicks are now the most valuable team in basketball, topping the list at $655 million. Their 12% increase in value since last year certainly has something to do with the impact of Amar’e Stoudemire, who has raised both the team’s competitiveness and marketability. The fact that the Knicks carry no debt probably plays a part in their high valuation as well.
It appears as though the Knicks’ signing of Stoudemire last year to a 5-year, $100 million contract was a good move after all, despite my strong belief that it was a mistake.
It’s no surprise that LeBron James’ decision had serious financial ramifcations for both teams involved. The value of the Miami Heat rose 17% to $425 million. That’s an increase of nearly $60 million. The value of the Cleveland Cavaliers dropped 26% to $355 million, a decrease of nearly $130 million.
One might wonder where that extra $70 million in value went!