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New troubles for Vick...
Hoopz:
Or his posse?
So the NFL can/will suspend him at least for one season AFTER he gets out of the pokey. Then they can probably suspend him 4 games for the violation of the substance abuse policy or they can make it concurrent. Regardless, he aint gonna be be bending over with his hands under another guy's crotch for a while...in the NFL I mean.
abrannan:
Point taken, but he still has only seen less than $40 mil of the $130 million so far. (2005 salary $600,000, 2006 salary $1,400,000) That still leaves almost 70% of his contract left to go. To me, that's pretty backloaded. A $2.5 mil loan still doesn't strike me as that odd.
HooPZ - I think you were taking my analogy a little too literally. It's not *exactly* like buying on margin. Lemme put it another way. My wife bought a car a few years back, and was able to get 1.9% financing on it. We put the minimum down, and are not making any payments ahead of time, even though we could have bought the car outright. We make more than 1.9% on that money just sitting in an ING account, so at the end of it all, we are better off financially by having the loan.
I won't pretend to know Vick's investment portfolio, or the real interest rate he is being charged, but it wouldn't be too much of a stretch to think that he's got a smaller percentage of his money (say, $2.5 million worth) in investments that are yielding more than 9%. Shoot, most of my stock picks so far this year are well into double digit returns.
And we all know that it's not Mike or his agent that obtained that loan, it's his accountant.
Hoopz:
--- Quote from: abrannan on September 26, 2007, 03:45:00 pm ---
HooPZ - I think you were taking my analogy a little too literally. It's not *exactly* like buying on margin. Lemme put it another way. My wife bought a car a few years back, and was able to get 1.9% financing on it. We put the minimum down, and are not making any payments ahead of time, even though we could have bought the car outright. We make more than 1.9% on that money just sitting in an ING account, so at the end of it all, we are better off financially by having the loan.
--- End quote ---
I understand your point and its certainly valid. You always have to look at your return relative to what it can be making in a risk free environment (US treas., money market yields ((which are primarily US treas.) and perhaps cd's) or where ever your cash is parked.
I am curious to know what the details of this loan are. His agent's firm has a relationship with a financial planning firm that should have structured his funds so that he has some cash flow to take care of day to day expenses (food, clothing, dog fighting items) and take care of his long term needs (excluding the 20 cents a day he will make cleaning toilets while in the pen). They are probably the ones who had the knowledge to go to a foreign bank to secure a loan for ____ purpose.
ChadTower:
...unless of course that "investment property" was for the same purpose as the "investment property" in West Virginia.
tommy:
I'm sure they thought a guy who makes millions of dollars would be a great no risk loan and would never have to worry about the guy not paying it back and they could make a pretty penny off of it too.
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