Quote:
Originally Posted by Jason14h
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
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In baseball, they may allow payments in the future ("we'll make you VP of public relations" or whatever), I don't know.
But deferring a contract like this does not allow or require segregating. The team would have to make the payments in year 1, 2 and 3. The money would be held in a trust account, earning whatever interest it is earning, so that it matures at $900k each year for the 10 years.
The team would have no access to those funds.