There are 3 posts at Utezone on this announcement: here’s one with the pertinent details.
I do estimating and estimate assurance as part of my job so picking through the details comes naturally. Here’s the rundown.
1. The article(s) state that the value of the deal is “roughly 6 MM”.
…a. 85 players x $61,000 = 5.185 MM. Not in any realm of rounding is that roughly 6 MM
…b. The 6 MM figure assumes the trucks were purchased at sticker price. Instead these are leases
……1. A standard 5 year lease would be $1,106.67 per month.
……2. 85 players x 6 month lease x 1,106.67 = $ 518,500
……3. Unless the Crimson Club is committing to paying full leases, this deal does not come anywhere close to 6 MM
2. Matt Garff
…a. The article notes that he is a founding member of the Crimson Club
…b. This deal guarantees income for his dealership as long as he is willing to continue
…c. $ 518,500 every 6 months is a nice gross for his business
…d. If this was a politician giving business to himself, it would be an ethics violation worthy of removal from office
3. Insurance
…a. The article states that the Crimson Club will be footing the bill
…b. What are the odds that the insurance provider will also be associated with the Crimson Club?
…c. If we assume $500.00, 6 months premiums (which should be high) we get 85 x 500 = $42,500
…d. Insurance plus sticker price of the trucks still does not get us anywhere 6 MM
4. The Players
…a. Must have good driving records to qualify
……1. Define “good record”. No accidents whether at fault or not? No tickets?
…b. Are there limitations on where and when the vehicles can be driven?
……1. Must the trucks stay in state?
……2. Can the players take them home (out of state) during breaks?
…c. The 6 month lease
……1. First lease if started November 1 would end April 30, before the end of school year (I think)
……2. Is there any guarantee that if a player meets the conditions, that the program won’t end?
……3. Does one of two bad apples ruin it for everyone?
…d. This is not an asset that the players can use to their benefit, i.e. resale
Ultimately, for promoting the Crimson Club the players get to borrow a car for 6 month increments. Granted, it’s a nice car, but it is not a tangible asset since Garff still owns each of the trucks. At the end of the day, Garff is the only one who receives a true benefit from this deal. He gets the income, he gets to look like a great guy in the press. The players are used as pawns while he pays himself from the non-profit he founded.
At least in the old days, when Bob’s Used Cars gave out $100 handshakes, the players got paid. Christ, when the parochial school had Bit Bars (Better Bars, Breakfast Bars, whatever the name of the company was) give a benefit to the entire roster, it was in $$$ instead of protein bars that the players had to give back as good as they got them.
Edit: I need to figure out how to indent on here. that is ugly
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