CBS: Notre Dame finishes its $18 million buyout payment to Charlie Weis

per CBS:

Charlie Weis received his final payment from Notre Dame, completing one of the most notable buyouts in recent college football history. The total bill extends beyond what some coaches have made or will make in their entire career: $18,967,960.

Weis received over $6.6 million from Notre Dame when he was fired in 2009, and he has continued to receive about $2.05 million each subsequent year, according to the Indianapolis Star. The news comes with the release of Notre Dame's federal tax return for the 2015 year, when the final installment of that payout ($2,054,742) was made.

http://www.cbssports.com/college-fo...ts-18-million-buyout-payment-to-charlie-weis/

Go Gophers!!

A fine investment.

Shades of Bobby Bonilla. Good on ya Charlie


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KoolAid said:

Shades of Bobby Bonilla. Good on ya Charlie


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Absolutely fascinating about Bonilla and the Wilpons and the Madoff tie-in.. Darryl Strawberry and Bret Saberhagen are also collecting checks through 2033 and 2029 respectively LOL. This is the kind of arbitrage story that won't make your eyeballs glaze over.



Why did the Mets do the deal?

The Mets have never really talked about the deal, but it is well known that their owners, the Wilpons, had many accounts with investor Bernie Madoff. Madoff was returning 12 to 15 percent a year in what we now know were fictional returns. So deferring deals wasn't a problem because the payout would occur years later and the interest rate would be lower than the money they were (fictionally) getting back from Madoff. To see the deal as the Mets would have seen it, let's say the Wilpons put $5.9 million into a Madoff account in 2000 and got a conservative (by Madoff standards) 10 percent annual return. By 2011, when they would have to pay Bonilla for the first time, they would have already grown their pot to $16.83 million. Even with paying off Bonilla every year, they would wind up with a $49 million profit on the deal. Of course, the Madoff returns weren't real, which complicates this hindsight.

The other way to think of it is that the Mets didn't have to pay Bonilla his $5.9 million in 2000 and could use it on other free agents. Sure enough, the Mets acquired Mike Hampton from the Astros right before they dumped Bonilla. Hampton's cost was conveniently $5.75 million, and his 15-10 record was good enough to help get the Mets to the World Series that year for the first time since 1986.

http://www.espn.com/mlb/story/_/id/...y-bonilla-119-million-today-every-july-1-2035

Darryl Strawberry's deferred compensation and posthumous bickering story. The ex-wife, the IRS, the lawyers, the auction.


Mets pay winning bidder OF's checks

The Internal Revenue Service on Tuesday auctioned off the money owed to Darryl Strawberry from the New York Mets contract he signed in 1985.

A man, who did not want to be identified, agreed to pay $1.3 million to receive a check from the Mets of $8,891.82 a month for the next 18½ years. Assuming a realistic timeline for the court to approve the sale, the value of the deferred payments will equal close to $2 million.

Anuj Kumar, an investor from Austin, Texas, said he usually invests in stocks and bonds, but the unique nature of the property was intriguing enough to fly in for. Due to mail-in bids, bidding started at more than $900,000, Kumar said, which was close to the number he was looking for. Kumar said there were roughly 25 people in the room, but the winning bidder showed the most interest all along.

"You could tell he wanted it no matter what," Kumar said.

Given the present value of the deferred money on the $1.3 million sale price, the rate of return for the winning bidder is about 5 percent.

The total value of the contract, which covered his 1985 through 1990 seasons, was $7.1 million, but nearly 40 percent of his $1.8 million team option in 1990 ($700,000) was deferred and put into an annuity with a 5.1 percent interest rate.

From 1987 to 1990, Strawberry failed to pay $542,572 in taxes, according to court documents. As of November 2013, Strawberry owed at least $80,000 from his tax liability from missed payments in 2003 and 2004.



http://www.espn.com/new-york/mlb/st...d-darryl-strawberry-new-york-mets-won-auction

I was surprised it was 2009 when Weiss was fired. Doesn't seem like that long ago or that Brian Kelly has been there so long. They haven't been world beaters under Kelly (although on really good season), but they've been pretty good every year. Weiss really was able to do less with more. Top recruiting classes and the worst season in ND history...

Nothing beats the deal the owners of the Spirits of St Louis made with the NBA. It ended up being almost a billion dollars in the end. Weiss is small potatoes in comparison.