Tuesday, November 01, 2005
Edward Bennett Williams Buys Orioles
Now, to be fair, Williams is not the best example of this, he didn't strictly speaking sell the team; it was sold by his estate in 1993. However, the profit made reflects just how good an investment a sports franchise can be. Adjusted for inflation, Williams' 1979 purchase of the Orioles cost roughly $26.5 million in "1993 dollars." However, the team was sold was to a Peter Angelos led group for $173 million, a pure profit of $160.7 million and one adjusted for inflation at $146.5 million. Williams then, could've lost nearly ten and a half million a year running the team and still broken even upon its sale. As I said, Williams' estate rather than the man himself was the beneficiary of the profit, but it is a number worth remembering the next time your local team owner cries poverty.