Riley and Eichorst are off the books.

[Landlord]

As has been alluded to, his XFL whatever the heck contract is likely the thing not being accounted for.

 

[Mierin]

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.

Good point. 

 

[knapplc]

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.

As has been alluded to, his XFL whatever the heck contract is likely the thing not being accounted for.

I thought about that, but the article says:

A university official said the actual payments were distributed on Jan. 31 for Riley and July 31 for Eichorst. 

Riley wasn't announced as the head coach of the XFL team until June. 

Maybe they already knew Riley was getting that job? That's not unlikely. Without that, the math doesn't make sense.

 

[StPaulHusker]

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

Pelini measures ROI in terms of spite.  Not dollars

 

[ColoradoHusk]

I thought about that, but the article says:

Riley wasn't announced as the head coach of the XFL team until June. 

Maybe they already knew Riley was getting that job? That's not unlikely. Without that, the math doesn't make sense.

 

[Mierin]

Pelini measures ROI in terms of spite.  Not dollars

That thought entered my mind. 

 

[grandpasknee]

My hope in all of this is that we don't end up with more "where are they now" payments for the next couple of decades.  Lock it down Moos!

 

[ColoradoHusk]

Pelini measures ROI in terms of spite.  Not dollars

I'm sure Pelini requests a paper check to be mailed to him every month so he has the joy of walking into the bank to deposit another check from the University of Nebraska Athletic Department.

 

[knapplc]

Me ..!.

 

[GSG]

As has been alluded to, his XFL whatever the heck contract is likely the thing not being accounted for.

.500 MIKE COULDN'T HANDLE THE XFL

 

[Redux]

 

[olddominionhusker]

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.

Is it possible that when the negotiate a lump sum payment it is for a lower dollar value for that reason? As an analogy when you win the lottery you can take x amount of dollars per year for x amount of years or a lump sum. The lump sum is always lower then the total if you take annual payments.Would it be possible that a slightly lower number was negotiated in return for a lump sum?

 

[Old Nebraska Guy]

It is my opinion the lump sum settlements are discounted from the full contract value. 

The receiver of the settlement get the advantage of managing all of the money at once and the payer saves "a few bucks".  Both get to clear the books so to speak.

Check out the details of those late night TV adds ("It's my money and I want it now.") for companies the will buy your "structured settlement".

 

[Old Nebraska Guy]

Also,

Compare the Powerball payout for lump sum vs. 20 years of payments.  (annuity)

oops, already mentioned

 

[secretasianman]

If you added up the payments to Callahan, Pelini, Eichorst and Riley... I’m estimating that it far exceeds the total salary that NU paid Coach Osborne over 25 seasons.