1 million becomes 800 million! The strongest investment in the NBA, which lasted for 38 years before

Mondo Finance Updated on 2024-02-01

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There is a very classic investment in the history of the NBA, the two team owners in the story actually did nothing, and they made $800 million for $1 million, which is indeed very powerful and unique.

Edit. In 1974, brothers Ozzie and Daniel Silna, who produced polyester fabrics, used the first pot of gold they earned, that is, $1 million, to buy the Carolina Pumagars, which were still in the ABA league at the time, and then relocated the team to St. Louis and renamed the St. Louis Spirits.

The Sillna brothers didn't run the team too much, as the ABA league was going to merge with the NBA two years later. However, at that time, the NBA was only willing to accept the four teams of the ABA, namely the New Jersey Nets, Denver Nuggets, Indiana Pacers and San Antonio Spurs.

In return, the St. Louis Spirits can get a $3 million dissolution fee, which is not bad for the Silna brothers, because it only took 2 years to turn 1 million into 3 million, which is already a very successful investment. But instead of asking for all the money, the Sillna brothers chose to take only $2 million, and then asked for a 1 7 permanent television share of the four teams that joined the NBA.

Edit. This "permanent" is clever, because as long as the Nets, Nuggets, Pacers, and Spurs have not disbanded, they will have to pay for the Silna brothers. In the beginning, it was only $200,000 a year, but as the NBA continued to grow, broadcast rights increased almost every year, reaching $20 million in 2014, and the Sillna brothers shared a total of $300 million over the course of 38 years.

Edit. In 2014, the NBA sold the broadcast rights for a sky-high price, so they wanted to buy out the contract and ended up paying $500 million. In this way, the Sillna brothers relied on a single investment vision, and in 38 years, they did nothing, and they collected $800 million from the NBA.

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