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re: Just for fun....

Posted on 12/4/19 at 8:51 pm to
Posted by SemperAuburn
Enterprise, AL
Member since Apr 2012
1337 posts
Posted on 12/4/19 at 8:51 pm to
A Bama fan at work saw that and told me about it. Had me worried for just a bit until I checked my usual sources and found nothing mentioning it.

FYI: worried not because I hate Gus, but because this season simply doesn't warrant a 5 year extension, but I don't trust AU admin not to make a bone headed move like that.
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 12/4/19 at 9:23 pm to
The problem with Gus is and will be the buyout not his salary.

With that win Gus probably bought himself 2 more years. We should try to front load his guarantees/buyout inside a contract raise/extension


As in, raise him to say $8m and guarantee it 2020/2021. Then say 50% guarantee 2022, 2023,2024

Functionally, his guarantees go up while his buyout drops by $5m after 2021




This post was edited on 12/4/19 at 9:35 pm
Posted by blzr
Keeneland
Member since Mar 2011
30099 posts
Posted on 12/4/19 at 9:25 pm to
Yeah he would be an idiot to do that
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 12/4/19 at 9:39 pm to
quote:

Yeah he would be an idiot to do that


Not so sure, this type of contract would settle a lot of things for him for the cost of only $2mil total

- Cliff buyout would remove him from hot seat discussion + negative recruiting
- Guaranteed $ goes up
- Clear raise $1m


The drop in buyout after 2021 season is only about $4mil but he'd be getting back $2mil in 19/20 seasons

This post was edited on 12/4/19 at 9:41 pm
Posted by Weagle25
THE Football State.
Member since Oct 2011
46191 posts
Posted on 12/4/19 at 9:39 pm to
quote:

We should try to front load his guarantees/buyout inside a contract raise/extension

How is that any different than paying his buyout at the end.

In fact, it’s actually worse for us if you factor in the time value of money
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 12/4/19 at 9:48 pm to
quote:

How is that any different than paying his buyout at the end.

In fact, it’s actually worse for us if you factor in the time value of money


Auburn buyouts are largely a strain to cash flow and not to value largely due to how ADs run their finances

So yes it would cost more $ but by easing the CF strain it gives more flexibility to made long term value adding decisions
This post was edited on 12/4/19 at 9:50 pm
Posted by blzr
Keeneland
Member since Mar 2011
30099 posts
Posted on 12/4/19 at 10:11 pm to
Do you just post and make all this up?
Posted by LanierSpots
Sarasota, Florida
Member since Sep 2010
61677 posts
Posted on 12/5/19 at 5:12 am to
quote:

You're such a bastard


I told you guys before. Im just here for the party.
Posted by Weagle25
THE Football State.
Member since Oct 2011
46191 posts
Posted on 12/5/19 at 7:11 am to
quote:

Auburn buyouts are largely a strain to cash flow and not to value largely due to how ADs run their finances

So yes it would cost more $ but by easing the CF strain it gives more flexibility to made long term value adding decisions

How does it ease cash flow if the cash is already gone...that makes zero sense

The cash mostly comes from the boosters anyways
Posted by Weagle25
THE Football State.
Member since Oct 2011
46191 posts
Posted on 12/5/19 at 7:16 am to
quote:

Cliff buyout would remove him from hot seat discussion + negative recruiting

You’re losing it man.

No buyout only increases his hot seat as a high buyout would be a reason to not fire him.

Negative recruiting would be worse because they would say AD has no faith in him which is why they keep the buyout low.

quote:

Guaranteed $ goes up

Not when his entire contract is guaranteed which I believe it is.
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