Thursday, April 17, 2014

A nice return on an investment.

In 1985, former Wisconsin Senator Herb Kohl purchased the Milwaukee Bucks basketball team for $18 million. According to ESPN, Senator Kohl is now selling a majority interest in the team for $550 million. The Bucks had a record of 15-67 this year, which is the worst record of any team in the NBA. I know the value of an NBA franchise is not based entirely on the team's record but one wonders what price Senator Kohl could have gotten for the team if it had been good.
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2 comments:

  1. Bart TorvikApril 17, 2014 at 3:42 PM

    Yeah, but inflation.

    ReplyDelete
  2. Adam GilletteApril 18, 2014 at 11:59 AM

    According to the BLS CPI inflation calculator, the present day value of $18 million in 1985 dollars is a little over $39 million in 2014. So, still a pretty good return,

    ReplyDelete

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