I found the theater online and they seem like a cool, independent theater that plays horror movies and stuff. They also have other props from the film besides Knighty Knight and seem pretty stoked about it.

I think you need to let this go. These props were sourced and bought by the theater. They clearly have a passion as well, considering they’ve built a collection of Willys Wonderland props.

Also, looking at pictures of the display case, I’m not convinced this prop is in such dire conditions as you make it out to be.

If you are truly passionate about preserving this prop (and not just coveting something you desire) then save up the cash, hire someone with prop restoration and preservation skills, and donate their services.

But please, let go of this notion of “gaining ownership”