SBD/6/Sports Industrialists


     With the headline "Compounded Interest Are Our Favorite
Words," FORBES looks at sports stars who "favor equity instead of
cash for endorsement deals."  Using such well-known personalities
as Isiah Thomas, the cover story documents the investments trends
of some of today's biggest stars.  "You can become truly rich in
the (sports) business now, but your playing life is over.  The
wise athlete treats his cash not as spending money, but as
capital to secure his future."  Curtis Polk, Exec VP of Falk
Associates Management Enterprises, says "athletes are a lot more
sophisticated than they are given credit for."  If athletes go it
alone and don't "run a business," they must turn to "passive
investments" of managing firms.  Of the top agencies:  IMG runs
"portfolios worth $150 million and claims to advise on more than
$1 billion worldwide"; Falk manages $80M.  Their charge?  At IMG,
"$6,000 for the first $1 million and $5,000 for each additional
$1 million for money management."  Falk "charges a flat $12,000
fee to $75,000 for its services."  Even NationsBank and Brown
Brothers Harriman are "trying to muscle their way into the
business," setting up management units for athletes (Machan &
Contavespi, FORBES, 12/19).
     GOLF WARS: FORBES also looks at golf legends Jack Nickalus
and Arnold Palmer and their business "competition." Nickalus'
Golden Bear International will earn $25M pretax this year and
Arnold Palmer Enterpirses' will earn $20M. The two cashed in big
when "they figured out how to convert themselves from mere
athletes into brand franchises."  Their international licensing
agreements are detailed, as well as their many lucrative
endorsement deals.  Alastair Johnston, who handles Palmer's
licensing and endorsements: "Lots of people in Asia buy Arnold
Palmer mercandise who don't know who Arnold Palmer is" (Randall
Lane, FORBES, 12/19 issue).
     JERRY COLANGELO:  Calling Suns Owner Jerry Colangelo a
"rarity in professional sports management," FORBES' Neil Weinberg
notes that NBA Commissioner David Stern credits Colangelo with a
"meticulous attention to every aspect of a franchise operation,
venue and a place in the community."  Stern: "If you take all the
aspects of the Suns' operations together with the arena, stadium-
building and team ownership in baseball, they are in the 99th-
plus percentile in diversification into sports."  After lining up
$278M for a retractable-roof stadium and $150M in capital,
Colangelo expects to gain an expansion baseball franchise once
that sport's labor troubles are resolved (FORBES, 12/19 issue).
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