A little more context on the sale of the Dolphins.
H Wayne bought 15 percent of the Dolphins and 50 percent of the stadium from team founder Joe Robbie's family in 1990 for $30 million.
He bought the remainder of the team and stadium in 1994 for $138 million, and bought some additional land in the late 90s for around $10 million.
That means he spent $178 million for everything.
He completed the sale yesterday for $1.1 billion. That means he made about $900 million dollars in profit over the course of the 20 years. That's not a bad return on investment (a whopping 500% return!!!)
Plus...according to published reports "Last year Forbes Magazine valued the Dolphins at $1 billion, with a revenue stream of about $232 million."
That revenue stream is astounding. Let's think about that for a moment.
Based on revenue sharing, the Dolphins get about $100 million (after player payouts)
From parking, its 20,000 spaces x $20 x 10 games = $4 million
From club seats, its 10,000 x $200 x 10 games = $20 million
From concessions, a total guess $10 million
From suites, 193 of them, another guess, $20 million
and that totals to $154 million, by that calculation. There are other sources, of course, through advertising, some merchandising, and the like. So $232 million is probably a good guess.
Figure that between costs, salaries, taxes, and other expenses, the Dolphins pay out 70% of the revenue. That leaves maybe $70 million in profit annually to the owner.
Even if we assume he averaged somewhere around $30 million a year in profit, over 20 years, that's still $600 million in profit!!!
So wayne went in with less than $200 million, and walks out with $1.8 billion. 900% return, anyone?
...and by keeping 5%, he assures himself that he will continue to make $4 million annually for doing....nothing.
Yeah, I'm feeling bad about him having to pay $15 million more in taxes, aren't you?