Tuesday, June 12, 2007

Value of a name

According to the Wall Street Journal,
"Golf icon Jack Nicklaus is selling a substantial minority stake in his company to New York real-estate mogul Howard Milstein to expand the Nicklaus empire around the world, extending its reach in golf course-designs, clothing, equipment and real-estate… The Nicklaus name on any course significantly increases its worth to developers, because it allows them to sell the accompanying real estate or resort properties at a higher price. Under the traditional business model, Mr. Nicklaus got only the design fee and in some cases also a small cut of the developments' profits."

That is pretty remarkable...that people are willing to pay extra to say that they live next to a Nicklaus course means something...I'm not sure what...

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