Friday, April 27, 2007

1/2 is still a lot

The Ann Arbor News is reporting tonight a deal on Beilein's buyout. According to reports, he's paying 1 million less than the contract specified. WVU will receive the first of five consecutive $300,000 payments in April 2008. The WVU contract required that Beilein would pay $500, 000 for every year remaining on his contract, but didn't specify when the payments would be made--there were five years remaining on that contract. While the payments are $1 million less than required by the contract they are actually even less than that. Assuming a 5% return on money, the present value of the 5 payments is actually $1.23 million. Beilein is making 1.3 million annually at Michigan. Even if it is less than 1 year's salary, it's' still a lot of money.