The ImG Dump

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Wes Edens is an investor with an affinity for the underdog. After he retired, Edens decided to invest in The Basketball Company, which was then on a long-term run of losing money. Now, with this team winning the NBA Championship, Edens has a net worth of $1.3 billion, as well as the distinction of being one of few people in history to score such phenomenal financial and sporting success from investing in a company that started as a loser.

Wes Edens co-owns Fortress Investment Group with other prominent financiers, Marc Lasry and Rob Kaufmann. Edens and his partners bought The Basketball Company in 2010 for $350 million. The company then struggled to recover from over-extension in the 1990s, when it was forced to sell its best players. Wesley Edens desperately wanted to buy the struggling team. He had primed himself for such a moment for some years, even though it meant investing in an underperforming company. For example, in 2007, Edens made his first substantial investment in The Basketball Company by giving $160 million to buy out the small shares held by other shareholders and bring his shareholding up to 70%.

Edens’ investment was not made strictly for financial reasons. He is a basketball fan who grew up playing the game, and held season tickets for the New Jersey Nets before relocating to Brooklyn. However, most of Edens’ investments do have a financial basis. This was certainly true of his decision to buy into The Basketball Company. Edens believed that his background as a business person would enable him to revive the company’s fortunes and make it profitable again. He succeeded in doing so. The Basketball Company is now the NBA’s best team. It has solid attendance figures and has attracted record sponsorship. Wes Edens, the company’s largest shareholder before founding Fortress Investment Group, is believed to have made around $25 million profit from his investment.

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