Riley and Eichorst are off the books.

[TAKODA]

I'm not sure how to feel about this.  Is this great news or what?

I know how I feel about it, but such language would have to be said in the shed. 

But I will present my message to nice guy MR, and incompetent SE, with this jingle!

Edit ~ As mentioned below, by TheSker! 

Add Perlman to the receivership, of these good tidings!

 

[TheSker]

I know how I feel about it, but such language would have to be said in the shed. 

But I will present my message to nice guy MR, and incompetent SE, with this jingle!

It wasn't just Eichorst and Riley......Perlman got this whole thing going....

 

[TAKODA]

It wasn't just Eichorst and Riley......Perlman got this whole thing going....

Editied to be politically correct!  

 

[Mierin]

I wonder how much $ Pelini lost out on not asking for a lump sum. 

 

[ColoradoHusk]

I wonder how much $ Pelini lost out on not asking for a lump sum. 

By not having the $ invested in the stock market or other investments?  Pelini's contract would have been made whole, no matter if he took the lump sum or the monthly payments.

 

[4skers89]

By not having the $ invested in the stock market or other investments?  Pelini's contract would have been made whole, no matter if he took the lump sum or the monthly payments.

I think when you get the Nebraska coaching lottery ticket wouldn’t it clearly state that the lump sum payout is less than the total of the periodic payments if they win?

 

[Mierin]

By not having the $ invested in the stock market or other investments?

Yes. 

I don’t remember the details but let’s say the lump would’ve been $4 million and he got $1 million per year from the monthly checks.

If we assume a 4% return and I’m puking this out right, he could’ve made an extra more than $240,000 over 3 years. Not that $240,000 matters to someone making that much

 

[TAKODA]

Yes. 

I don’t remember the details but let’s say the lump would’ve been $4 million and he got $1 million per year from the monthly checks.

If we assume a 4% return and I’m puking this out right, he could’ve made an extra more than $240,000 over 3 years. Not that $240,000 matters to someone making that much

I believe what ColoradoHusk is saying, (correct me if I am wrong here (CH), is to the university, the cost would not have been any different. To BP, had he received the whole amount  and vested it, in something that returns at the rates you mentioned, then you are correct. 

But then, if we are talking about the numbers to BP, you also have to consider taxes, on lump sum vs. payments. Not sure if the tax numbers break out differently when your getting 1m vs 4m per year however. Wish I knew 

 

[knapplc]

This doesn't make sense to me. Riley was given a contract extension in September, 2017. His contract ran through 2020 and the contract was for $2.9 million per year. Even assuming his 2017 contract as paid, there'd be three years remaining for a total of $8.9 million.

If we mitigated that with his paltry "consulting" salary at Oregon State, he'd be getting $2.85 million per year, or $8.55 million remaining on the three years of his contract.

At $6.2 million, that's less than $2.1 million over the three remaining contract years (2018, 2019 & 2020).

What happened to the other $700K, or $2.1 million, that we would have owed him over the three year contract?

I'm famously bad at math and have made several gaffes here over the years, so someone show me where I'm wrong. Because I'm not seeing it.

 

[TAKODA]

This doesn't make sense to me. Riley was given a contract extension in September, 2017. His contract ran through 2020 and the contract was for $2.9 million per year. Even assuming his 2017 contract as paid, there'd be three years remaining for a total of $8.9 million.

If we mitigated that with his paltry "consulting" salary at Oregon State, he'd be getting $2.85 million per year, or $8.55 million remaining on the three years of his contract.

At $6.2 million, that's less than $2.1 million over the three remaining contract years (2018, 2019 & 2020).

What happened to the other $700K, or $2.1 million, that we would have owed him over the three year contract?

I'm famously bad at math and have made several gaffes here over the years, so someone show me where I'm wrong. Because I'm not seeing it.

Yep, I am not sure either Knapp. Was basing my comments off what was stated previously above (numbers). Not sure what the initial agreement was, vs. any negotiated amounts, should they differ? I believe Moraine was just using hypothetical numbers in her comments, to get the basis of how it works. 

Sorted this out of the artical above. See full write in intial post. 

Riley was paid $6,235,393 in a lump sum, covering obligations from Dec. 6, 2017, through the end of his contract term on Feb. 28, 2021. 

 

[ColoradoHusk]

Yep, I am not sure either Knapp. Was basing my comments off what was stated previously above (numbers). Not sure what the initial agreement was, vs. any negotiated amounts, should they differ? I believe Moraine was just using hypothetical numbers in her comments, to get the basis of how it works. 

Sorted this out of the artical above. See full write in intial post. 

Riley was paid $6,235,393 in a lump sum, covering obligations from Dec. 6, 2017, through the end of his contract term on Feb. 28, 2021. 

My guess is that the monthly payments were discounted back by a cost of capital to the time of the lump sum was paid out, so that financially the Net Present Value of the lump sum payment equaled the value of the monthly payments going forward.

That would also answer Moraine's question about Pelini losing out on the lump sum payment by taking the monthly payments.

 

[Mierin]

I believe what ColoradoHusk is saying, (correct me if I am wrong here (CH), is to the university, the cost would not have been any different. To BP, had he received the whole amount  and vested it, in something that returns at the rates you mentioned, then you are correct. 

But then, if we are talking about the numbers to BP, you also have to consider taxes, on lump sum vs. payments. Not sure if the tax numbers break out differently when your getting 1m vs 4m per year however. Wish I knew 

I knew what he was saying. I’m talking about $ Pelini missed out on. 

I didn’t include taxes but I also treated the monthly payments as a yearly payment. 

 

[RedDenver]

This doesn't make sense to me. Riley was given a contract extension in September, 2017. His contract ran through 2020 and the contract was for $2.9 million per year. Even assuming his 2017 contract as paid, there'd be three years remaining for a total of $8.9 million.

If we mitigated that with his paltry "consulting" salary at Oregon State, he'd be getting $2.85 million per year, or $8.55 million remaining on the three years of his contract.

At $6.2 million, that's less than $2.1 million over the three remaining contract years (2018, 2019 & 2020).

What happened to the other $700K, or $2.1 million, that we would have owed him over the three year contract?

I'm famously bad at math and have made several gaffes here over the years, so someone show me where I'm wrong. Because I'm not seeing it.

ColoradoHusk already mentioned NPV adjustment, but Riley is supposed to be taking over as HC of a new XFL-like football team, so the projected salary of that job may have also reduced the payout.

 

[ColoradoHusk]

ColoradoHusk already mentioned NPV adjustment, but Riley is supposed to be taking over as HC of a new XFL-like football team, so the projected salary of that job may have also reduced the payout.

I think his salary with that new San Antonio team is $500-550K.  I am not sure how long the contract is, but that would help make up for the rest of the gap.

 

[ColoradoHusk]

I knew what he was saying. I’m talking about $ Pelini missed out on. 

I didn’t include taxes but I also treated the monthly payments as a yearly payment. 

Taxes on an annual basis aren't too much different between $1M-$4M.  With the graduated income tax brackets, any annual income over $600K (married, filed jointly) the tax rate is the same for each $ earned.  If anything, Pelini is saving on taxes now compared to when he was fired as the 2018 tax rates for higher income earners were lowered.