Quote:
Originally Posted by Enoch Root
It would be out of their hands, and held in Trust by a law firm - there would be no ability to outperform the discount rate.
But even if they could, for the sake of argument, it is pointless and not worth their efforts. Even if they could arb 2% per year on this deal (and they can't), that's a whopping $180k/yr before fees and before taxes.
Organizational payroll is well over $100M/yr
So no, I doubt they "love" it.
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The Dodgers have literally done this to the tune of 1 billion and there are articles about the savings. 2% on a billion is $20 million
They can because they can secure a better guaranteed ROI then the rate they use to calculate currently value so in todays $ they segregate less then they would have to pay the athlete .
And you don’t think owners care about a “whopping $180k for free ?
You really are grasping now - owners don’t care about free $$