Quote:
Originally Posted by Jason14h
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 $$
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I can only speak for Canada, where the money would be held in trust by a legal firm - no chance for the payor to invest it on their own, to do better.
If California allows that, that is crazy. The reason it is held in trust by lawyers is to guarantee delivery. Also, it is no longer as asset of the payor, it is an asset of the payee, so they should not have an ability to capitalize on it.
I would love to see the article on what the Dodgers are doing. I suspect that it isn't straight deferral, but there is actually some payments that will not be owing until some point in the future (unlike a deferral, which is due now)