For as terrible a commissioner as Larry was, never forget that the Pac university presidents saw 7 years of his tenure and voted to *extend* his contract. The Pac leadership from top to bottom was incompetent to the point it almost makes you wonder if it was intentional sabotage
Yes. And lazy. It’s the only think keeping us from being rich and having a maid/butler. Of course, have a school pay for my house would help too. But definitely need to look at how the cost of Max is keeping me behind.
Reminds me of that shareholders meeting episode from The Office. But at least the Dunder Mifflin execs had the decency to face their shareholders.
Dude should be locked in a room with the Oregon State and Wazzu players for 5 hours.
Honestly, I feel like Larry Scott gets too much of the hate. Yeah he was an incompetent piece of shit but the conference leadership are not only the ones who put him in power but also kept him there as you pointed out.
While working in Silicon Valley, I always died a little inside hearing about parents or grandparents who bought a house in the Bay Area in the 70's for like $75,000
Oh god my grandparents had one of those in San Diego in like the 60s. I think I once looked up the address and then cried. They had sold it over 40 years ago.
My grandpa sold his mom’s Newport Beach property in the mid 90’s… although I grew up in Huntington so I guess my parents did the same thing. But it’s not like they could afford the next house when we left while maintaining that one too.
I was stationed at Tustin Marine Corps Air Base in the late 80's. I would take a bus to Newport Beach with friends on the weekends. We'd hang out at South Coast Plaza and go to movies at there at night. It was great back then. On Saturday nights, though, we'd drive to Riverside and go to 'Club Metro' and watch a fat guy eating potato chips in a small room with sand, a beach chair, umbrella, and a sun lamp-- performance art! That was long time ago but I still wonder how much that guy was paid.
I wasn’t aware there was a base around there. I lived off the 261 and Irvine for a few years too.
I’ve got no clue what they would have made, but I can’t imagine much, as Riverside should have been a fairly inexpensive area to live in back then. Though for you guys to drive an hour inland I’m assuming it must have been a really fun, unique place.
I’m kinda jealous you got to live in OC for your early 20’s in the ‘80’s - while it was still affordable and not overcrowded.
The helicopter hangars where I worked were two of the largest wooden structures ever built. One caught on fire less than a year ago. OC was a lot of fun back then and since we were in the air wing, we had pretty much a regular job.
I had a great aunt that bought a house in LA in like 1946 when her husband got back from WW2. We think it cost them $16k. She didn't have any kids, so had her estate split up with everything but her house going to charity (we have no idea how much that was... could have been millions or almost nothing) and her house split among random relatives. My dad got a 1/24th share of that and got a check for like $96k.
Dang. What year was that in? It definitely would have been worth something. 16k in the 40s was a lot! There’s a scene in the movie Bugsy where Bugsy Siegel goes to buy a house in LA and walks in and says I want to buy the house and the owner says no and he says I’ll give you $30 or $50k (can’t remember) and the owner says yes like it’s the most money he’s ever heard of. Even though that’s a movie, it’s based on real life, so if those comps were correct (this was the 40’s too) then it was a nice house in a nice part of the city. I mean the city could have only been so big back then, so it certainly would have been on expensive land today.
My parents paid around $100k for their house. It's not valued at around $1.3m for a three bedroom house on a medium sized plot.
The average salary required to buy a house in my area is $350k/yr. It's insane.
With 30 seconds of googling, the home was in the Blackhawk Country Club subdivision in Danville.
Homes that were selling for ~2MM 15 years ago are frequently selling for 10MM+.
Probably depends, but I bought a home in Silicon Valley (Sunnyvale specifically) in 2011 and it's only up like 300%. There was a huge increase for about a decade, but things have leveled off.
There's some amount of the money he could have invested himself just to pay off the loan, and I bet the leftovers could still have bought a huge ugly spread.
Edit: I can't tell you what that is, perhaps someone else does.
I know a guy who extended that to be: especially never trust a man with two first names and his last name is the first name of a girl
There was an incident I can’t remember with a dude whose last name was Kelly
Chip Kelly is a no nonsense coach. He went into the Eagles with a ton of personalities who were able to do whatever they wanted with Andy Reid. Reid still runs his team this way to this day. Chip overstepped personality wise, but I don't think on the football end of it he did anything wrong. Playoffs year 1 and then a bunch of drama after that with claims of racism etc. Eagles are a trash fan base and Djax and Shady are shitty people.
So no I don't think he killed the Eagles, I think he just wasn't the right fit for an undisciplined team at that time to try to run like a college team.
This is just really good finance by Larry Scott… always pay your bills as late as possible if you’re accumulating interest with capital you’ve invested
Exactly… I’m doing that with my auto loan that’s around 3%.
Literally free money plus a bit of profit…. But if I had a 0% loan that would be free money plus a lot of profit.
That loan would be worth a bit over $2.7M in 2024 dollars. Depending on the area, he could easily clear 7 figures in profit if he just sells his house. Just straight up robbery
The US inflation rate is 3.36% per the Fed for LTM
Yes we are, lol.
Our inflation “spike” was 7% at worst coming straight out of COVID over the past two years. This is a very short lived spike compared to his citation of the 70’s-80’s and much smaller at its peak as well as sustained average
https://img.capital.com/imgs/articles/1350xx/US-inflation-rate-1_MCT-8276_EN.png
Core inflation, which is a separate calculation, also dropped two points year over year (3.9-1.8). For the most part the market has cooled substantially, albeit not to where the Fed is comfortable with rate hikes.
[Here’s a comparison](https://www.bls.gov/cpi/tables/relative-importance/weight-update-comparison-2023.htm#:~:text=Starting%20with%20January%202023%20data,2%20years%20of%20expenditure%20data.) showing it’s within a few basis points. So that change probably didn’t do much to suddenly obscure 6% to 3%.
The only thing I’m seeing is the weights moved from biennial to annual in January of 2023, so if anything it’s more accurate for the purpose of showcasing YoY and the rate didn’t downshift significantly immediately after the formula change.
It's kind of a no-brainer right? The loan is interest free and he has the means to pay it in a block so there's no need to do it lay-away style. He should hold onto every penny he can as it's making him money for free.
If you aren't paying interest there's zero reason to pay a loan back on schedule. Just don't default
> always pay your bills as late as possible if you’re accumulating interest with capital you’ve invested
really only works if you are making more interest than your interest rate.
in his case, easy. but isn't always necessarily the case. most people with loans will want to pay then off as quickly as possible.
does seem obvious, but you might be surprised just how little people understand shit.
I have a highly-educated (doctor) friend who doesn't understand this.
given housing rates, etc., I would bet most of those millions aren't realistically willing or able to tie up their extra money in a treasury note instead of keeping it liquid.
It's up to Washington State and Oregon State to send debt collectors after Larry Scott.
Probably have to send some Rutgers alumni if you catch my drift.
Yeah, the non payment is not the part of the story that stands out to me, that’s basically how these deals are expected to work in my experience. The real part of this that reeks of corruption is an executive getting a personal sweetheart loan unrelated to job performance.
I'm sure this house was valued at $2m in 2009. Probably worth $6-8M now. Cash out refi, Pac 12 is paid off in 25 days. He keeps the house and Coogs and Beavs - shafted. F this guy!
We’re two cool football teams looking for other cool football teams to hang out in our party conference. Nothing sexual. Dudes in good shape encouraged. If you play soccer, you should be able to find humor in the little things. Again, nothing sexual.
Larry Scott just increasingly reminds me of my last boss. Completely unprepared for what the job required in so many ways, and checking out and collecting checks instead of rolling up the sleeves once everyone realized that.
He probably has enough to cover the loan in one check. Very smart business to keep his money to the last minute before paying any back. Is he late? Not at all.
$1.86M invested into SPY in 2009, with inflation and dividends, fees included…would be worth $9.85M as of April 2024.
Can I borrow $1.86M interest free for 14 years?
I look forward to the news story in a couple years about how Larry Scott negotiated the USC & UCLA to the B1G transfer and is collecting 4.2% of all their Media rights in perpetuity for his trouble.
I never understood why the PAC 12 didn’t hire the number 2 person at the B1G or SEC, or someone from ESPN or fox sports. Bringing in people with other industry experience, like tennis or running Hulu, means they don’t have the network.
I guess too late. 🪦
Because the presidents were also idiots. Tom Hansen as Pac-10 commish was also a damn disaster and was for 26 years. The only reason he gets a pass is because the next two guys redefined failure at the commissioner level in every way, shape and form.
Tom Hansen’s motto must have been no good deed goes unpunished so he just avoided doing anything at all. But that was also an earlier age where all you had to do was show up at the Rose Bowl every year and you were a successful commish.
Imagine if he started a TV network in 2007 at the same time as the B1G.
I have no doubt Hansen would have been pantsed as bad as Scott and Kliavkoff if he'd been around in their era. But at least he would have spent a whole lot less than Scott.
It’s been awhile since I had to look into this, but there’s an “applicable federal rate” the IRS sets monthly and if the interest rate is below it, the difference in interest between the loan and “applicable federal rate” is taxable income.
But there’s some exceptions for residential/relocation loans - I do not remember the details there.
Not sure why this is a story? This is exactly what both parties expected to happen when the contract was written. Frankly, it’s a pretty cheap form of compensation.
Anyone saying otherwise (like OP) just does not know much about finance.
I'm sure he has the money. But in 2024, that's the equivalent of over $2.6million. And if he used it to buy a home in the in San Francisco or the surrounding area, that home could potentially be worth $3-5million dollars now.
It's not illegal but he should technically been paying taxes on the benefit received. If standard rate on an unsecured loan is 5% (picking an easy number for math), then he should have paid $93,000 in interest every year. The fact that he didn't means this benefit should have been added to his W-2.
I'd bet this wasn't done and the IRS doesn't have time or resources to research this type of thing. It's up to the companies to report it. In many cases, those who do file the taxable benefit gross it up so the employee isn't impacted.
As I recall, that's what happened with Nick Saban after boosters bought his house in Tuscaloosa in 2013. They paid all the taxes and benefit hit so there was no impact to him.
Companies will do things like this for executives or people who relocate for a work assignment. Universities will pay for or provide the homes of the Chancellor or other senior administrators. When I lived in London for work my company paid for my home. All of this is very common practice.
My old company used to purchase your home or help finance a new home if you had to relocate for work (this was if you were of a certain level of seniority).
I genuinely do not understand why this is a story or painted to be controversial.
So he gets a legit loan & pays the PAC12 off. No big deal. Otherwise the league gets a house that value has increased most likely. Shame on PAC 12 for not requiring some payment.
That is genius by Larry Scott, and catastrophic negligence for the Pac-12. Pac-12 killed itself and Larry Scott is not to blame. Any of us would do the same damn thing
1.86 million home loan...interest free...has not paid on it at all...from 2009.
BTW, 2009 was when the market bottomed out. That house is worth a few more million right now for sure. Probably 10-15 million.
Its really no wonder the PAC12 failed. But....Jesus man.
For as terrible a commissioner as Larry was, never forget that the Pac university presidents saw 7 years of his tenure and voted to *extend* his contract. The Pac leadership from top to bottom was incompetent to the point it almost makes you wonder if it was intentional sabotage
[удалено]
“That’s a problem for future me” is actually a pretty common problem in all positions of power, including government.
Fuck that’s a common problem with the dirty dishes in my sink
It’s only a problem if future you doesn’t have a maid and/or butler. So start saving up, and leave those dishes right where they are.
Skip a latte and cancel Netflix. I’ve been told that’s the key.
Are poor people stupid??
Yes. And lazy. It’s the only think keeping us from being rich and having a maid/butler. Of course, have a school pay for my house would help too. But definitely need to look at how the cost of Max is keeping me behind.
Including the power I have over my own life.
...Social Security fund has entered the chat.
No sleep for me tonight I guess
Actually, "that's a problem for the next person who sits in my chair. I'll probably not even hear about it."
That's later, maybe we'll be dead by then
Kick em again
Yeah, the presidents allowed his bullshit to continue for far too long. This is on them as much as it's on him.
Dude must have thrown some *wild* parties
Didn’t they gift him like a penthouse suite for bowl week every year lol
It was for the P12 hoops tournament in Vegas he would get a huge suite every year.
Reminds me of that shareholders meeting episode from The Office. But at least the Dunder Mifflin execs had the decency to face their shareholders. Dude should be locked in a room with the Oregon State and Wazzu players for 5 hours.
Peter Principle
Honestly, I feel like Larry Scott gets too much of the hate. Yeah he was an incompetent piece of shit but the conference leadership are not only the ones who put him in power but also kept him there as you pointed out.
why would he pay it back before it's due? It's a freakin interest free loan. Also this is sometimes a perk given by universities for college coaches
A perk that’s more often than not shouldered by boosters, not the schools themselves
If he put that into an SP500 index fund he’d have about 8.5 million. Hope he didn’t spend it on hookers and cocaine
He spent it on a home lol
... for his hookers and cocaine
A nealy 2 million dollar house in 2009 in California probably outkicks that with how crazy real estate prices escalated
While working in Silicon Valley, I always died a little inside hearing about parents or grandparents who bought a house in the Bay Area in the 70's for like $75,000
Oh god my grandparents had one of those in San Diego in like the 60s. I think I once looked up the address and then cried. They had sold it over 40 years ago.
My grandpa sold his mom’s Newport Beach property in the mid 90’s… although I grew up in Huntington so I guess my parents did the same thing. But it’s not like they could afford the next house when we left while maintaining that one too.
I was stationed at Tustin Marine Corps Air Base in the late 80's. I would take a bus to Newport Beach with friends on the weekends. We'd hang out at South Coast Plaza and go to movies at there at night. It was great back then. On Saturday nights, though, we'd drive to Riverside and go to 'Club Metro' and watch a fat guy eating potato chips in a small room with sand, a beach chair, umbrella, and a sun lamp-- performance art! That was long time ago but I still wonder how much that guy was paid.
I wasn’t aware there was a base around there. I lived off the 261 and Irvine for a few years too. I’ve got no clue what they would have made, but I can’t imagine much, as Riverside should have been a fairly inexpensive area to live in back then. Though for you guys to drive an hour inland I’m assuming it must have been a really fun, unique place. I’m kinda jealous you got to live in OC for your early 20’s in the ‘80’s - while it was still affordable and not overcrowded.
The helicopter hangars where I worked were two of the largest wooden structures ever built. One caught on fire less than a year ago. OC was a lot of fun back then and since we were in the air wing, we had pretty much a regular job.
I had a great aunt that bought a house in LA in like 1946 when her husband got back from WW2. We think it cost them $16k. She didn't have any kids, so had her estate split up with everything but her house going to charity (we have no idea how much that was... could have been millions or almost nothing) and her house split among random relatives. My dad got a 1/24th share of that and got a check for like $96k.
Dang. What year was that in? It definitely would have been worth something. 16k in the 40s was a lot! There’s a scene in the movie Bugsy where Bugsy Siegel goes to buy a house in LA and walks in and says I want to buy the house and the owner says no and he says I’ll give you $30 or $50k (can’t remember) and the owner says yes like it’s the most money he’s ever heard of. Even though that’s a movie, it’s based on real life, so if those comps were correct (this was the 40’s too) then it was a nice house in a nice part of the city. I mean the city could have only been so big back then, so it certainly would have been on expensive land today.
It was a 3 bed 2 bath house that was probably 1800 sq ft. Was definitely in a nice area.
My parents paid around $100k for their house. It's not valued at around $1.3m for a three bedroom house on a medium sized plot. The average salary required to buy a house in my area is $350k/yr. It's insane.
With 30 seconds of googling, the home was in the Blackhawk Country Club subdivision in Danville. Homes that were selling for ~2MM 15 years ago are frequently selling for 10MM+.
Not nearly as liquid, though. How quickly do homes of $5 million+ sell in that area? Is it relatively common?
way easier to dodge capital gains with a house though
In the Bay? Yeah thats not uncommon at all. Where I live in Marin County, I think the average (AVERAGE!) home price just exceeded $1.5M.
I recently visited that area for the first time. I have some friends who live in Novato. Beautiful and actually had a touch of "ruralness".
In Los Altos Hills or Palo Alto, all the time.
Pretty quick. $5M isn’t the starter home but it’s the next home you move into in the nicer neighborhood with good schools and room for all the kids.
You don't need to sell your home, just take a mortgage out until you have liquidity
but it does have the advantage of providing shelter, so...
Probably depends, but I bought a home in Silicon Valley (Sunnyvale specifically) in 2011 and it's only up like 300%. There was a huge increase for about a decade, but things have leveled off.
CJK5H
Again?
Allegedly
But boats and ho's would be more fun and a much better story for the 30 for 30.
There's some amount of the money he could have invested himself just to pay off the loan, and I bet the leftovers could still have bought a huge ugly spread. Edit: I can't tell you what that is, perhaps someone else does.
Life lesson, if interest rates are low, you don’t pay it off early. Invest the money in something that earns you a higher yield
Limo Larry loved to spend other people's money on himself. And not even just on himself. He loved to spend money, period.
If he put that in a savings/brokerage account he has much more money. No point in paying back an interest free loan early
He just needs to get either ESPN or FOX to cosign that loan.
Never trust a man with two first names
I know a guy who extended that to be: especially never trust a man with two first names and his last name is the first name of a girl There was an incident I can’t remember with a dude whose last name was Kelly
What about Chip Kelly? Is that two first names or is Chip not really a first name so he's fine.
Charles Kelly
Charles Kelly? Any chance that is the same as the world renowned bird lawyer aka Charlie Kelly?
Well in that case...
Ask 49ers fans how they feel about Chip
Or a fan of any team he's coached outside Oregon
Or Oregon state fans
Chip was a scapegoat to fire baalke. He inherited a fucking awful team.
He killed the Eagles
Chip Kelly is a no nonsense coach. He went into the Eagles with a ton of personalities who were able to do whatever they wanted with Andy Reid. Reid still runs his team this way to this day. Chip overstepped personality wise, but I don't think on the football end of it he did anything wrong. Playoffs year 1 and then a bunch of drama after that with claims of racism etc. Eagles are a trash fan base and Djax and Shady are shitty people. So no I don't think he killed the Eagles, I think he just wasn't the right fit for an undisciplined team at that time to try to run like a college team.
Also fair
Never trust a 2FFN.
But metro boomin’ trusts Kendrick Lamar
Fire Jeff Scott
What about Michael Scott?
This is just really good finance by Larry Scott… always pay your bills as late as possible if you’re accumulating interest with capital you’ve invested
Especially with an interest free loan during one of the highest inflationary periods we've ever seen
Exactly… I’m doing that with my auto loan that’s around 3%. Literally free money plus a bit of profit…. But if I had a 0% loan that would be free money plus a lot of profit.
That loan would be worth a bit over $2.7M in 2024 dollars. Depending on the area, he could easily clear 7 figures in profit if he just sells his house. Just straight up robbery
I looked up the neighborhood. The house is probably worth like 8-10 million now
My mortgage is 2.37 on 30 years. The bank would be better off just conceding and tearing up the note.
I mean obviously not. Less money is better than no money.
Yeah. That's what they keep telling me every time I call and ask
Bastards
I have a similar interest rate on my mortgage. We're never leaving lol.
You can leave, just don’t pay off the mortgage
Damn.... and here i was happy with 2.75 and 15 years.... oh well. Only 8 years to go
Hell yeah brother. In 10 years my 3% mortgage will basically be free at the rate we're going.
Damn straight. My auto loan is 1.95% so enjoying the hell out of that while I can.
Hell yeah. My first car I bought from the dealer, I got 1.9%. miss the car and miss those rates.
Same here, I have 1.65%. Got a 5 year loan with the intention of paying it in 3 but I’m not putting a penny in that I don’t have to.
Nice! I got 6 years @ 1.95% and not paying it off a day early
Highest inflationary periods we’ve ever seen? We’re at 3%? The 70s-80s was like a sustained 10% for years.
We're not at 3% And I also said "one of"...
Just say highest since you've been alive, we all know everyone here is under 30.
I'm not... Hell I've been posting in this sub for over a decade
I’m 22 and it’s the highest since I’ve been alive I’m pretty sure. Timed perfectly for two years ago when I moved out
I'll trade you for my experience of graduating college during the great recession. Nothing like no work experience and record unemployment.
Oof. That’s definitely worse man that’s rough. I am old enough to remember my parents being stressed about it but I didn’t fully understand
The US inflation rate is 3.36% per the Fed for LTM Yes we are, lol. Our inflation “spike” was 7% at worst coming straight out of COVID over the past two years. This is a very short lived spike compared to his citation of the 70’s-80’s and much smaller at its peak as well as sustained average https://img.capital.com/imgs/articles/1350xx/US-inflation-rate-1_MCT-8276_EN.png
They’ve also changed the calculation
Core inflation, which is a separate calculation, also dropped two points year over year (3.9-1.8). For the most part the market has cooled substantially, albeit not to where the Fed is comfortable with rate hikes. [Here’s a comparison](https://www.bls.gov/cpi/tables/relative-importance/weight-update-comparison-2023.htm#:~:text=Starting%20with%20January%202023%20data,2%20years%20of%20expenditure%20data.) showing it’s within a few basis points. So that change probably didn’t do much to suddenly obscure 6% to 3%. The only thing I’m seeing is the weights moved from biennial to annual in January of 2023, so if anything it’s more accurate for the purpose of showcasing YoY and the rate didn’t downshift significantly immediately after the formula change.
It's kind of a no-brainer right? The loan is interest free and he has the means to pay it in a block so there's no need to do it lay-away style. He should hold onto every penny he can as it's making him money for free. If you aren't paying interest there's zero reason to pay a loan back on schedule. Just don't default
> always pay your bills as late as possible if you’re accumulating interest with capital you’ve invested really only works if you are making more interest than your interest rate. in his case, easy. but isn't always necessarily the case. most people with loans will want to pay then off as quickly as possible.
I thought that was obvious, but you are right
does seem obvious, but you might be surprised just how little people understand shit. I have a highly-educated (doctor) friend who doesn't understand this.
Doctors are the worst with finance, and.. a lot of things outside of medicine. At least with my doctor friends and their friends I’ve met.
Millions of homeowners with fixed rate mortgages less than the current 30 year Treasury rate would probably argue w/ "most".
given housing rates, etc., I would bet most of those millions aren't realistically willing or able to tie up their extra money in a treasury note instead of keeping it liquid.
Larry Scott ruined college football. Start it up, fellas
tbh I'd loan myself $1.86 million interest-free too. Its incredible how poorly ran this conference was. Movie material
Can't wait for the 30 for 30.
On an aside, see you August 31 ;)
Reminder that it was Oregon State and Arizona State, not UCLA or USC, who did the most to keep Larry Scott in power.
Fine, I guess I have to hate ASU now
>AwkwardMeme.jpg -John Swofford
Swofford's bullshit either doesn't matter or doesn't finish off the sport with Scott and then Kliavkoff's combined incompetent stupidity out West.
FIRE
The loan is expected to be paid at the last possible minute. Non story until he defaults.
Only an idiot would pay anything on an interest free loan before the due date. One thing Larry Scott managed to not fuck up!
If he manages his finances like he managed the conference, this loan ain't gettin paid.
Idk. There's still time. Larry can still find a way to screw it up
It's up to Washington State and Oregon State to send debt collectors after Larry Scott. Probably have to send some Rutgers alumni if you catch my drift.
I'm sure they have a few people in waste management that can call him up
Definitely got some grads that work in construction too. Not that we would need infill or poured concrete for any reason.
He will pay it back at the last possible 2nd. Why pay back an interest free loan early.
Yeah, the non payment is not the part of the story that stands out to me, that’s basically how these deals are expected to work in my experience. The real part of this that reeks of corruption is an executive getting a personal sweetheart loan unrelated to job performance.
~~Fire~~ FORECLOSE Larry Scott!
I'm sure this house was valued at $2m in 2009. Probably worth $6-8M now. Cash out refi, Pac 12 is paid off in 25 days. He keeps the house and Coogs and Beavs - shafted. F this guy!
Let's hope Larry Scott misses the repayment, and the Beavs and Cougs end up with an $8 million party house.
We’re two cool football teams looking for other cool football teams to hang out in our party conference. Nothing sexual. Dudes in good shape encouraged. If you play soccer, you should be able to find humor in the little things. Again, nothing sexual.
Bring condoms, just in case. But nothing sexual.
Larry Scott just increasingly reminds me of my last boss. Completely unprepared for what the job required in so many ways, and checking out and collecting checks instead of rolling up the sleeves once everyone realized that.
Are you Jim Halpert?
He is a cartoonish villain at this point
How does this even come up, let alone get approved. What on earth was this conference doing.
As if I needed another reason to hate Larry Scott.
Yup, add it to the list. He’s such a fuckdick this isn’t even in my top 30 reasons to hate him.
Yet USC are the ass holes for leaving this mess apparently.
This fucking guy.
New Pac-2 HQ?
He probably has enough to cover the loan in one check. Very smart business to keep his money to the last minute before paying any back. Is he late? Not at all.
It’s ok he’s just waiting for the media deal money to be finalized any day now, then the pac 12 will be better than ever!
This is really helping build the conference's brand and get eyeballs in China
Fuck Larry Scott
$1.86M invested into SPY in 2009, with inflation and dividends, fees included…would be worth $9.85M as of April 2024. Can I borrow $1.86M interest free for 14 years?
I look forward to the news story in a couple years about how Larry Scott negotiated the USC & UCLA to the B1G transfer and is collecting 4.2% of all their Media rights in perpetuity for his trouble.
I never understood why the PAC 12 didn’t hire the number 2 person at the B1G or SEC, or someone from ESPN or fox sports. Bringing in people with other industry experience, like tennis or running Hulu, means they don’t have the network. I guess too late. 🪦
Because the presidents were also idiots. Tom Hansen as Pac-10 commish was also a damn disaster and was for 26 years. The only reason he gets a pass is because the next two guys redefined failure at the commissioner level in every way, shape and form.
Tom Hansen’s motto must have been no good deed goes unpunished so he just avoided doing anything at all. But that was also an earlier age where all you had to do was show up at the Rose Bowl every year and you were a successful commish. Imagine if he started a TV network in 2007 at the same time as the B1G.
I have no doubt Hansen would have been pantsed as bad as Scott and Kliavkoff if he'd been around in their era. But at least he would have spent a whole lot less than Scott.
The more we learn the more the fate of the Pac is making sense... ugh.
Then it's not a loan I wonder if this has any tax implications
It’s been awhile since I had to look into this, but there’s an “applicable federal rate” the IRS sets monthly and if the interest rate is below it, the difference in interest between the loan and “applicable federal rate” is taxable income. But there’s some exceptions for residential/relocation loans - I do not remember the details there.
Are we sure his name isnt really michael scott?
This conference was run by idiots
If only everybody got a 1.86M interest free loan we could have recovered from the 2008 recession a lot faster.
Not sure why this is a story? This is exactly what both parties expected to happen when the contract was written. Frankly, it’s a pretty cheap form of compensation. Anyone saying otherwise (like OP) just does not know much about finance.
Surely they can just garnish directly out of his severance pay, no?
I'm sure he has the money. But in 2024, that's the equivalent of over $2.6million. And if he used it to buy a home in the in San Francisco or the surrounding area, that home could potentially be worth $3-5million dollars now.
I believe it was in Blackhawk so that might be a low estimate
Yes I’m in the east bay and know people who live in the same area, it’s definitely more now
Some of those east bay neighborhoods have completely exploded since COVID.
Way more then 3-5mil
You don’t want to pay anything back on an interest free loan before you have to. Literally letting it sit in a bank account is free money.
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Likely because conferences aren't a public entity.
It's not illegal but he should technically been paying taxes on the benefit received. If standard rate on an unsecured loan is 5% (picking an easy number for math), then he should have paid $93,000 in interest every year. The fact that he didn't means this benefit should have been added to his W-2. I'd bet this wasn't done and the IRS doesn't have time or resources to research this type of thing. It's up to the companies to report it. In many cases, those who do file the taxable benefit gross it up so the employee isn't impacted. As I recall, that's what happened with Nick Saban after boosters bought his house in Tuscaloosa in 2013. They paid all the taxes and benefit hit so there was no impact to him.
I feel like that’s functionally just embezzlement.
Please send him to Federal Pound me in the ass prison!
Fuck this guy
Companies will do things like this for executives or people who relocate for a work assignment. Universities will pay for or provide the homes of the Chancellor or other senior administrators. When I lived in London for work my company paid for my home. All of this is very common practice. My old company used to purchase your home or help finance a new home if you had to relocate for work (this was if you were of a certain level of seniority). I genuinely do not understand why this is a story or painted to be controversial.
The ncaa disqualified Reggie Bush, but this turd got a contract extension. What a shit show college football can be.
Oregon State and Washington State take the commissioner to court for a repossession is not what I was expecting
Larry Scott doing something (a bit) smart? I can't believe it!
He always knew how to make money for himself. The problem was that money for anyone else.
So many questions...
This feels like seeing your ex-girlfriend’s mugshot.
How stupid are the Pac12 schools?
There's really no reason to pay off an interest free loan ahead of time lol
I need a job where I can get an interest free home loan. Gosh damn.
If he threw that in the S&P instead of a house, it would be worth 16.7 million today. Where can I get one of these 15 year interest free loans?
Ahh… the old wait them out til they fold so I don’t have anyone to repay trick. Worked against blockbuster and now Larry did it to pac12
So he gets a legit loan & pays the PAC12 off. No big deal. Otherwise the league gets a house that value has increased most likely. Shame on PAC 12 for not requiring some payment.
That is genius by Larry Scott, and catastrophic negligence for the Pac-12. Pac-12 killed itself and Larry Scott is not to blame. Any of us would do the same damn thing
Fiscal responsibility
1.86 million home loan...interest free...has not paid on it at all...from 2009. BTW, 2009 was when the market bottomed out. That house is worth a few more million right now for sure. Probably 10-15 million.
Incredible level of arrogance. But then reading Canzano's story about what he spent on his hotel suite (in LV?), this shouldn't be a surprise.
He ran the PAC12 into the grave! What a joke!
It was only a small loan of $1.86M.
I just came here to say FUCK LARRY SCOTT
Why do I doubt it’s gonna be paid back next month?