Only $200k? I'd guess at least double that. If an iconic logo is being revamped for the first time in decades, getting it right would be worth at least a million. Sadly, paying a lot doesn't guarantee a good result...

From reading about these redesigns in the past it sounds like most of that money goes to surveying and considering all of the places a logo is used; letterheads, physically on the cars, web graphics, sides of buildings, making sure it doesn't conflict in other markets, etc. Sure, Nike paid $35 to the designer of their logo, but that didn't include any of those things above or pay for all of the rejected designs.

Like you're saying, the client very well might be requesting and choose a design that looks like it was made by an amateur.

Remember the London Olympics logo? Something like $700k.

I had to look that up, that is awesome!

Thats... almost exactly what they did though.

No. They boffed it with that transparent background, and the letters scrunched up against the circle.

Envision a black ring instead of black, no white border, and the letters B M W in a tighter, more modern sans serif. That could have been slick.