Newark Airport Ban Struck Down Means Newark Medallion Value Struck Down

According to the Medallion Financial (TAXI) 10-K annual report released on March 7, 2016:

The Newark Market: We estimate that Newark medallions sold for approximately $321,000 as of December 31, 2015.

TAXI management and the Board’s Audit Committee used $321,000 as the mark to market value of Newark taxi medallions.

This egregious overvaluation yielded a total value of $24,585,000 for TAXI’s 115 Newark medallion loans held on their balance sheet.


When was the last time a Newark medallion was transferred for a price anywhere near $321,000 in an arm’s length transaction?

Given the striking down of the Newark Airport ban, what rational taxi business owner would pay over $300,000 for a Newark medallion?

An honest disclosure by TAXI management would cite the destruction of Newark medallion value on their balance sheet as a obviously material Subsequent Event in the 10-K that took place after December 31, 2015,

For an excellent description of this issue by KPMG, see:

FASB 165 Statement On Subsequent Events

TAXI should also include in their Subsequent Event Disclosure, the devastating effect on their balance sheet on the plummet of medallion values in New York, Chicago and Boston compared to the overinflated values used to mark to market assets on the balance sheet as of December 31, 2015.

Here’s the Newark Airport article:



Agencies Won’t Uphold Ban On Uber, Lyft At Newark Airport

By By Paul Milo
NJ Advance Media for
February 19, 2016

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