Quote:
Originally Posted by Flying Ace
bingo. Someone who gets it.
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I'd like to also see the analysis on how it was beneficial for the Mets to structure this payment. If this wasn't a baseball team (I don't know how teams gets their payroll funds and how it relates to luxury tax hit, revenue sharing, cash flow from media contracts), a company will have to have financed $6mm immediately (or in accordance to the payment schedule/conditions in the contract e.g. guaranteed money) through borrowings or from equity. There may have been a significant cost of allocating this $6mm at that point in time when they signed the contract. Corporate borrowing rates at that time were in the 7% range, but no one would have known that corporate borrowing rates would continue to drop down to today's 5% level...this or that the Mets are just idiots.
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There is an article that explains it. They had the $6mil in the Bernie Madoff account and since it was “doubling regularly” they didn’t want to pull it out. They thought this $30mil was going to be nothing compared to their earnings from that fund. So yes. They were idiots.
https://apple.news/ADn3f0hdFQQ6AtyGeslM4FQ