Quote:
Originally Posted by Enoch Root
It doesn't work like that.
The team would have to deposit set funds in each of the 3 years of the contract (the discounted amount, which appears to be roughly $1.57M each year). They aren't 'segregating' it until the payments are due. The funds would be held in trust.
There is no opportunity to make money on it.
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Wrong (Probably)- they segregate the guaranteed note that pays the proper amount in those years.
So they are actually segregating 1.XX real cash ( some
Percentage less then 1.57) that they get a ROI of X% guaranteed - whatever rate they negotiated - with approved institutions from the league .
Or at least that’s how it works in baseball and I assume it’s the same for hockey
Edit - maybe I misunderstood - if they are depositing / segregating the discounted amount there has to be a ROI component to get the the eventual proper payout amount ?? I know the team doesn’t make money off it - but it pays interest towards the eventual payout amount to make the future amount correct