44 replies to this topic

[#27TheDominator]

Because of the implied investment gains? there's implied investment losses too.

 

with interest rates so low it's a marginal benefit at best. 

 

THERE IS NO SUCH THING AS IMPLIED INVESTMENT LOSSES. He can put the money in a shoe box under his bed and be in the same position. You sound like a guy ready to take a dollar a day for 1,000 years instead of $365,000.  

[bitonti]

Ok so let's break this down fellas. 

Scenario 1 Mark gets 8.5 Mil over the course of 16 game checks from Sep-Dec in 2013. 

Scenario 2 Mark gets 8.5 Mil up front in August. 

 

in scenario 1 the 1% interest is 85000 per year. But the Jets aren't giving it to him a year in advance. In fact he's getting 1/16th of it  in first week of Sept. either way. Then he gets a week interest on week 2's check, 2 week's interest on week 3's check etc. 

 

let's forget all that and pro rate the interest on the whole 8.5 as 1% over 6 months = $42500.  that's being really generous and the guaranteed difference between the scenarios. 

 

Mark could by 30 year T bills in which case whether he's getting it in weekly installments or 1 lump sum doesn't really matter.

 

we could pretend that mark can invest the whole chunk in the stock market, and maybe make 5% on it by the end of the year (which would be amazing). but that is not guaranteed. He could lose it all. there's fees, commissions, taxes etc.  

 

 

Only the 1% savings rate is 100% guarunteeed 

But Mark also could be cut or traded in this scenario. He could get traded to some backwater he's got no interest in... like Jacksonville or Buffalo. There's the lost cost in local sponsorships. There's moving expenses. There's the price of getting his current house ready for sale. there's the chance that the house he bought in 2008 isn't worth what he paid for it at the time. 

 

so in the end what is this player gaining? I don't see it as an advantage. 

[#27TheDominator]

Heaven help us. 

[JFtoLong]

Bit, sorry man, no matter how you slice this, you are wrong, money now is absolutely, without a doubt, better than tomorrow. Present value calculations prove this out very, very clearly

[bitonti]

Bit, sorry man, no matter how you slice this, you are wrong, money now is absolutely, without a doubt, better than tomorrow. Present value calculations prove this out very, very clearly

 

 

the NBA offers to pay it's players seasonally or weekly. 3 out of 4 players take weekly. There has to be a reason for that...