Two Regular Brothers Netted $800 Million From The NBA In History's 'Greatest Sports Deal'

In 2007, the NBA made a $7.4 billion deal with ABC/ESPN and TNT for broadcasting rights over eight seasons. 

The arrangement involved monthly payments to the league’s team owners. An intriguing aspect of the payout was the inclusion of an extra recipient beyond the 30 NBA teams — brothers Ozzie and Daniel Silna.

Born to Latvian immigrants in New Jersey, the Silnas had taken over their father’s textile business before venturing into the polyester industry. Their successful polyester business, driven by the disco fashion trend, amassed their considerable wealth. With this fortune, they pursued their dream of owning an NBA team, but their bid to buy the Detroit Pistons in 1974 was unsuccessful.

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Undeterred, the Silnas turned to the American Basketball Association (ABA), a rival league to the NBA. They acquired the Carolina Cougars, which they moved to St. Louis and renamed the Spirits of St. Louis. Despite initial success, including making the playoffs in their first season, the ABA eventually folded in 1976. Most ABA teams were absorbed into the NBA, but the Spirits, along with a few others, were left out.

During the negotiations for the ABA-NBA merger, the Silnas made a crucial deal. They agreed to dissolve their team in exchange for a share of future TV broadcast revenues from the four ABA teams joining the NBA. This deal, initially seen as inconsequential, turned out to be incredibly lucrative. As the NBA’s popularity and TV contracts grew, so did the Silnas’ earnings from this agreement. The arrangement eventually became known as what Forbes referred to as "the greatest sports deal of all time." 

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By 2013, they had earned about $300 million from the arrangement. The NBA, recognizing the ongoing financial impact, sought to buy out the Silnas. According to The New York Times, a final agreement was reached in 2014, with the NBA paying $500 million to settle the contract. This brought the total payout to the Silnas to approximately $800 million.

Ozzie Silna died in 2016, having reaped the benefits of this historic agreement. Daniel Silna, still alive, never owned an NBA team but secured a significant fortune from the league’s TV revenue. Their journey from textile businessmen to unlikely NBA revenue beneficiaries stands as a testament to strategic foresight and the unpredictable nature of sports business dealings.

While the brothers never owned a high-profile team like the Lakers or the Bulls, their savvy decision-making mirrored the foresight seen in successful startup investments. Their ability to recognize and capitalize on a unique opportunity, even with a lesser-known entity like the Spirits of St. Louis, demonstrates that success in the business realm often comes from innovative thinking rather than just playing a starring role. With the right strategy and vision, you don't need the most prominent or established players to achieve impressive profits.

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