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      07-01-2019, 01:41 PM   #20
Pauldunlop13
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Quote:
Originally Posted by Flying Ace View Post
bingo. Someone who gets it.

..........
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.
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
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Last edited by Pauldunlop13; 07-01-2019 at 02:00 PM..
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