Steve Young's USFL contract

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Young2Rice:

Originally posted by pd24:
Did you guys know he recieved a 40 million dollar guaranteed contract in 1984. He agreed to take his payment in the form of an annuity over 40 years. He is still gettong paid and his last payment of 3.137 million will be in 2027. Smart man, and 40 million is more guaranteed money than most players get today and that was 26 years ago. He only played 1 year, the team went bankrupt and Young was in the NFL in 1985 and got paid again.

Ummm. If the team went bankrupt, where is this 3.1367 million per year coming from? Are u making this up?

No, I read it:


http://ezinearticles.com/?Steve-Young---USFL-Pro-Football-Career-and-Brigham-Young-University-(BYU)-Cougars-Football-Career&id=4018711

Quote:
Even though the now defunct league officially shut down in 1986 litigation proved successful in eventually guaranteeing that Young be paid the annuity value he was promised.

http://en.wikipedia.org/wiki/Steve_Young_(American_football)

Quote:
The league ceased operations in 1986 after losing most of its claims in an antitrust suit against the NFL. As of 2010, Young continues to receive his annuity. Payments started at $200,000 per year in 1990 and will continue to increase annually. In 2027, the final year of the contract, Young will receive $3.173 million.[1]

That still doesn't answer who is paying him.

Yes it does. An annuity was set up at the time the contract was set up and now he is recieving annuity payments. It's like a retirement plan. The court ruled that the USFL couldn't touch the annuity and the payments will still go to Young until the $40 million is paid.

Do you know how annuities or investment plans work?

Nope. So the USFL had 40 million dollars to put somewhere.
No wonder why Montana hates him.

No, the team only had to put about 2 million in the annunity and the payments started in 1990. It is like a retirement plan, a long term investment.

I don't understand. So there's only 2 million that he can get?

The 2 million or so was invested like a 401k and Young wasn't going to start getting payments until 1990. Annunities earn on a fixed int rate and back in 1984 the rates were around 12%.

[ Edited by valrod33 on Sep 14, 2010 at 13:43:14 ]

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Young2Rice:

Originally posted by pd24:
Did you guys know he recieved a 40 million dollar guaranteed contract in 1984. He agreed to take his payment in the form of an annuity over 40 years. He is still gettong paid and his last payment of 3.137 million will be in 2027. Smart man, and 40 million is more guaranteed money than most players get today and that was 26 years ago. He only played 1 year, the team went bankrupt and Young was in the NFL in 1985 and got paid again.

Ummm. If the team went bankrupt, where is this 3.1367 million per year coming from? Are u making this up?

No, I read it:


http://ezinearticles.com/?Steve-Young---USFL-Pro-Football-Career-and-Brigham-Young-University-(BYU)-Cougars-Football-Career&id=4018711

Quote:
Even though the now defunct league officially shut down in 1986 litigation proved successful in eventually guaranteeing that Young be paid the annuity value he was promised.

http://en.wikipedia.org/wiki/Steve_Young_(American_football)

Quote:
The league ceased operations in 1986 after losing most of its claims in an antitrust suit against the NFL. As of 2010, Young continues to receive his annuity. Payments started at $200,000 per year in 1990 and will continue to increase annually. In 2027, the final year of the contract, Young will receive $3.173 million.[1]

That still doesn't answer who is paying him.

Yes it does. An annuity was set up at the time the contract was set up and now he is recieving annuity payments. It's like a retirement plan. The court ruled that the USFL couldn't touch the annuity and the payments will still go to Young until the $40 million is paid.

Do you know how annuities or investment plans work?

Nope. So the USFL had 40 million dollars to put somewhere.
No wonder why Montana hates him.

No, the team only had to put about 2 million in the annunity and the payments started in 1990. It is like a retirement plan, a long term investment.

I don't understand. So there's only 2 million that he can get?

The 2 million or so was invested like a 401k and Young wasn't going to start getting payments until 1990. Annunities earn on a fixed int rate and back in 1984 the rates were around 12%.

That really doesn't explain how that two million gained enough value to pay out so much annually and to total $40m. To get that sort of return you need a large initial investment or a regular payment in and nothing coming out for years. Neither of which seem to be the case here.

I was a sports reporter in the 80s during the short life of the USFL and had sideline and pressbox passes to the San Antonio Gunslinger (Rick Neuheisel was their QB) games. I recall national sports people covering a game with the Houston Gamblers (Jim Kelly was their QB) that the league was going to fold right after Young signed his fat contract. The Gunslingers owner, Clinton Manges, was such a flake he didn't even pay his players their final paycheck. Manges was later convicted in federal court for other crimes. Donald Trump was a fat cat owner in that league too.

It is interesting Steve Young was still getting paid. Another 49er quarterback, John Brodie, somehow signed a contract with the 9ers and signed a contract with the AFL Houston Oilers. He never played a down for the Oilers, but for some reason they still had to pay him. Agents were slick back in those days too.

Originally posted by joebbadass:
I was a sports reporter in the 80s during the short life of the USFL and had sideline and pressbox passes to the San Antonio Gunslinger (Rick Neuheisel was their QB) games. I recall national sports people covering a game with the Houston Gamblers (Jim Kelly was their QB) that the league was going to fold right after Young signed his fat contract. The Gunslingers owner, Clinton Manges, was such a flake he didn't even pay his players their final paycheck. Manges was later convicted in federal court for other crimes. Donald Trump was a fat cat owner in that league too.

It is interesting Steve Young was still getting paid. Another 49er quarterback, John Brodie, somehow signed a contract with the 9ers and signed a contract with the AFL Houston Oilers. He never played a down for the Oilers, but for some reason they still had to pay him. Agents were slick back in those days too.

oh man, thanks for the story....

what did you think of ESPN's special on the USFL?

Another reason to love Steve Young: Financially savvy.

Originally posted by English:

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Joecool:

Originally posted by pd24:

Originally posted by Young2Rice:

Originally posted by pd24:
Did you guys know he recieved a 40 million dollar guaranteed contract in 1984. He agreed to take his payment in the form of an annuity over 40 years. He is still gettong paid and his last payment of 3.137 million will be in 2027. Smart man, and 40 million is more guaranteed money than most players get today and that was 26 years ago. He only played 1 year, the team went bankrupt and Young was in the NFL in 1985 and got paid again.

Ummm. If the team went bankrupt, where is this 3.1367 million per year coming from? Are u making this up?

No, I read it:


http://ezinearticles.com/?Steve-Young---USFL-Pro-Football-Career-and-Brigham-Young-University-(BYU)-Cougars-Football-Career&id=4018711

Quote:
Even though the now defunct league officially shut down in 1986 litigation proved successful in eventually guaranteeing that Young be paid the annuity value he was promised.

http://en.wikipedia.org/wiki/Steve_Young_(American_football)

Quote:
The league ceased operations in 1986 after losing most of its claims in an antitrust suit against the NFL. As of 2010, Young continues to receive his annuity. Payments started at $200,000 per year in 1990 and will continue to increase annually. In 2027, the final year of the contract, Young will receive $3.173 million.[1]

That still doesn't answer who is paying him.

Yes it does. An annuity was set up at the time the contract was set up and now he is recieving annuity payments. It's like a retirement plan. The court ruled that the USFL couldn't touch the annuity and the payments will still go to Young until the $40 million is paid.

Do you know how annuities or investment plans work?

Nope. So the USFL had 40 million dollars to put somewhere.
No wonder why Montana hates him.

No, the team only had to put about 2 million in the annunity and the payments started in 1990. It is like a retirement plan, a long term investment.

I don't understand. So there's only 2 million that he can get?

The 2 million or so was invested like a 401k and Young wasn't going to start getting payments until 1990. Annunities earn on a fixed int rate and back in 1984 the rates were around 12%.

That really doesn't explain how that two million gained enough value to pay out so much annually and to total $40m. To get that sort of return you need a large initial investment or a regular payment in and nothing coming out for years. Neither of which seem to be the case here.

I dont know the exact details, but if you invested 2 million in 1984 at 11 or 12% fixed rate, it equals over 40 million in 40 years. His payments started at 200 thousand in 1990 and go up to like 3.1 million over the last 8 to 10 year until 2027.

If they did 2 million at 12% and left it for 40 year without payment it would come out to $186,101,940.88 at the end of 40 year, but he started recieving $200,000 payments in 1990, so 2 million is enough money to get you to 40 million in 40 years. Look up th int rate in 1984, it was 12%.

I think the article is wrong. If I remember correctly, the owner of the LA Express put 3.5 million into an annuity over twenty years. An annuity is an insurance product and it would be apart from anything to do with the USFL It is backed by the insurance co. that created it. So even if the USFL folded it wouldn't matter. Many malpractice suits are put into an annuity to provide life time payments. After twenty years it was to become 43 million dollars for Young. He should have it all by now.

[ Edited by stevenking57 on Sep 14, 2010 at 14:43:49 ]