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TaycroNov 17, 10:06 PM

PSU owes Franklin $9M as a part of a negotiated settlement...why?

Yo, @NateBauer why do we owe Franklin $9M? I thought if Franklin made more than like $8 million or $9 million a year we were completely off the hook. Is he really making less than that at VT? If he is making more than that, why do we owe him anything?
66 Replies
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NateBauer

Nov 17, 10:07 PM

Taycro said:
Yo, @NateBauer why do we owe Franklin $9M? I thought if Franklin made more than like $8 million or $9 million a year we were completely off the hook. Is he really making less than that at VT? If he is making more than that, why do we owe him anything?
I don't know.
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Jim Cummings

Nov 17, 10:08 PM

Eh it’s Pennie’s on the dollar. It’s a severance package. Let it go.
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leftcoastlion

Nov 17, 10:08 PM

NateBauer said:
I don't know.
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Taycro

Nov 17, 10:09 PM

@Harrimsa any intel here?
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NateBauer

Nov 17, 10:10 PM

leftcoastlion said:
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Honestly, I might not even follow up on it to get an answer since you guys are being so mean to me.
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leftcoastlion

Nov 17, 10:10 PM

NateBauer said:
Honestly, I might not even follow up on it to get an answer since you guys are being so mean to me.
Typical
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PSUFANinVA

Nov 17, 10:10 PM

Perhaps the PSU lawyers and accountants figured that a certain $9M (likely paid out over time) was better than an uncertain up to $50M (or whatever the number was). Franklin may have been fine with the $9M because it was better than potentially less if he'd signed a market rate deal at a place like (checks notes) VT. Seems like a potential reduced exposure compromise if true.
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ThePennsyOracle

Nov 17, 10:11 PM

NateBauer said:
Honestly, I might not even follow up on it to get an answer since you guys are being so mean to me.
At least Taycro and leftie didn’t hit you with Randy. I would never do that to you, Nate.
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Taycro

Nov 17, 10:11 PM

NateBauer said:
Honestly, I might not even follow up on it to get an answer since you guys are being so mean to me.
Ill buy you a beer at Antifragile if you find out
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NateBauer

Nov 17, 10:11 PM

Taycro said:
Ill buy you a beer at Antifragile if you find out
Done.
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PSUFANinVA

Nov 17, 10:12 PM

I hope this topic is thoroughly covered in the first episode of Nate Bauer's Meat Rides podcast, coming soon.
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Corneliuswonder

Nov 17, 10:13 PM

I think it’ll be pretty easy to tell when we get a look at his Virginia FOIA-assisted contract figures. My uneducated guess is that his new contract is backloaded in a fashion that wouldn’t be unusual in this industry, and/or structured in such a way where Penn State is still on the hook for a delta for the next few years, and this settlement is the result. Jimmy Sexton is good at his job, which is maximizing the financial return for his clients over the term of every contract they sign.
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NateBauer

Nov 17, 10:19 PM

PSUFANinVA said:
I hope this topic is thoroughly covered in the first episode of Nate Bauer's Meat Rides pocast, coming soon.
You won't even have to wait that long. Takes time to get a podcast like that going.
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pennstater97

Nov 17, 10:19 PM

I thought i read somewhere that PSU had to payout a base salary of $500k/year regardless, and that only the amount above that would be subject to offset. It doesn't quite seem to math with $9M though, so perhaps I am misremembering that.
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NateBauer

Nov 17, 10:19 PM

Corneliuswonder said:
I think it’ll be pretty easy to tell when we get a look at his Virginia FOIA-assisted contract figures. My uneducated guess is that his new contract is backloaded in a fashion that wouldn’t be unusual in this industry, and/or structured in such a way where Penn State is still on the hook for a delta for the next few years, and this settlement is the result. Jimmy Sexton is good at his job, which is maximizing the financial return for his clients over the term of every contract they sign.
This is the answer.
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Taycro

Nov 17, 10:20 PM

NateBauer said:
You won't even have to wait that long. Takes time to get a podcast like that going.
You have to ease in to the meat riding, for lack of better terms.
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Phoenixville Lion

Nov 17, 10:23 PM

NateBauer said:
Honestly, I might not even follow up on it to get an answer since you guys are being so mean to me.
Man-up Nate.
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NateBauer

Nov 17, 10:26 PM

Phoenixville Lion said:
Man-up Nate.
(It's a joke. But, 👍 )
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psueagles

Nov 17, 10:29 PM

NateBauer said:
This is the answer.
NateBauer said:
This is the answer.
is the 9m a lump sum? or over several years
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NateBauer

Nov 17, 10:33 PM

psueagles said:
is the 9m a lump sum? or over several years
I'm under the impression lump, but I don't know. I think he's got a comparatively low entry point at VT from what the Penn State deal was, and it's fewer years, so while $49m was never really in the mix, *something* was, and this is the compromise. I'm under the impression Penn State is happy with the resolution. Edit: Correction. Not lump per Jon Sauber. Who had all of the $9m details and I would not have known to ask if he hasn't reported.
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PSUJam

Nov 17, 10:36 PM

NateBauer said:
I'm under the impression lump, but I don't know. I think he's got a comparatively low entry point at VT from what the Penn State deal was, and it's fewer years, so while $49m was never really in the mix, *something* was, and this is the compromise. I'm under the impression Penn State is happy with the resolution.
"Instead, he will be paid the $9 million. It will not be paid out in a lump sum, but will instead be spread out, according to a source." Read more at: https://www.centredaily.com/sports/college/penn-state-university/psu-football/article312954709.html#storylink=c py
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scocha409

Nov 17, 10:38 PM

There is no offset for this year, so that would be the bulk of the $9m
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mbach2013

Nov 17, 10:39 PM

You pay a certain amount of money to get long-term uncertain liabilities off your books. Especially if you were looking to finance, say, a large stadium or something.

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