Before I get started, the current balance is $1,415.67. That’s a lot of missed prop bets on the Super Bowl if you were lucky enough to be in Vegas at that time………but anyway…..
The main point of this post is I think it’s time we step up the game a little bit with in. Nothing to do with entry fees. I believe Commish elect Chris will be addressing that topic in his news conference. I’m talking about how the money is deposited. The funds are currently sitting in a standard savings account, accruing a mere 0.100% interest. My suggestion is that I move that into a 12 month certificate, where it would accrue 1.800%. For those of you who don’t understand how interest works, this is basically a Sombke theory. The payout would be more while the deposit would be the same.
For example….If Chris were to win next year. Current interest paid on the current balance would pay him $1,417.09. The certificate would pay him $1,443.15. The difference only increases each year it goes uncollected. In order to do this, a couple changes would need to be made to the payout schedule. Season payouts would still be taking place at the Super Bowl, the change would be the dynasty fund would be paid at the next year’s draft.
If approved, I will open the certificate the next day I go to work. The reason for the delayed payout would be simply timing of the deposit. In order to get the full benefit of the interest, it must stay deposited until maturity – 12 months after being opened for those of you who don’t understand maturity – Sombke. Schedule of events would be as follows:
- Open certificate in amount of $1,415,67. Let’s say March 1st, 2019 for the sake of the explanation.
- League dues paid at draft and deposited into a seperate savings account – August 26, 2019.
- Season payouts take place at Super Bowl. – February 2, 2020
Now, we assume Chris does not repeat….
- March 1, 2020, the certificate balance will be ~$1,443.15. Take the portion of league dues allocated for the dynasty fund, and add it to the matured certificate for renewal at that time’s current rate.
- New certificate is opened in the amount of ~$1,693.
If rates stay the same, the payout for the 2021 draft would be ~$1725, compared to ~$1665 if kept in a normal savings.
This will continue until the dynasty fund is collected. Once a repeat winner is confirmed, on March 1, 20XX the funds from the certificate will be added to the savings account that that year’s dues were deposit to. It will sit there for 5 months, accruing the lower interest rate for 5 months, until it is awarded to the winner at the draft.