Atlanta, GA Mike Scully - Managing Director at Baycrest Consultants shares their plan to help Universities dealing with their Coach's Buyouts! Coach Buyout Scenario in the Endless Money Loop for Power 4 Coach Here’s an illustrative outline of how a Power 4 school could deploy on a coaches $40.5 million buyout through the “Endless Money Loop” instead of an immediate cash‐out expense. 1. Structure the Buyout as a Loan in the Endless Money Loop • Rather than writing a $40.5 million check within 60 days, the university and coach agree in writing to treat the entire buyout into the Endless Money Loop as a “loan” from university to the coach. • This deferral converts what would be a P&L expense into a balance-sheet receivable asset . 2. Purchase a Split-Dollar Life Insurance Policy • University immediately contributes the $40.5 million loan proceeds as premiums into a corporate‐owned, participating whole‐...
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