This is different than the stock market. To me this is in very poor taste especially if the university actively pursues old folks who are just this side of death.

If people step forward and volunteer their "services" it is only slightly more appealing.

If they are going to do this, one person who should kick the whole thing off is coach Schnellenberger. This is in no way intended to be a knock on him. It would simply give confidence to the idea and make it more appealing to others. That said, I would hope that FAU wouldn't be able to cash in on his policy for a very long time.

GO OWLS!!!

owlcountry said

illinoisowl said

 The down side, the foundation will have to provide the capital out lay to buy these policies. Some of these policies might have to be held for a long period of time producing no income until they are paid off. It will take alot of money to buy these policies.

I'm just curious if Barry Kaye stands to make any money by having the FAU Foundation buy these policies… sort of a middleman fee.

I would be nervous about putting out a lot of money on the hope that they will eventually yield a lot of money. We could sit on our eggs for a long time and get a lot of bad press, which is the last thing we need.

I would push for a traditional money-making approach.

According to my agent/friend, he thinks Kaye will take a commission on these policies as they are purchased.

Oh Kaye will definitely make commissions on these purchases, he'd be the agent that facilitates them. He stands to make A LOT of money on the deal.

don't get me wrong, i know he is a huge supporter of FAU but this will benefit him greatly as well.

Here is an article I found on viaticals.

http://www.aarp.org/money/credit_debt/a2002-10-01-FraudsViaticals.html

I guess the interesting part about this is, Kaye is motivated to seek out these policies for commissions. The more he seeks out for the benefit of FAU, the more he makes.

illinoisowl said

I guess the interesting part about this is, Kaye is motivated to seek out these policies for commissions. The more he seeks out for the benefit of FAU, the more he makes.

Of course, it is all about making money for him and if you ask me, it is a pretty crappy way to make money.

GO OWLS!!!

sounds good to me…just earmark $65M of the proceeds for the stadium…

:D

Florida_Owl said

sounds good to me…just earmark $65M of the proceeds for the stadium…

:D

The problem with this system is you don't know when you are going to get your money. If we used this to fund the stadium, we might not get all the funds in place until 2020 or later. Who knows?

The other problem is it would probably take $30-40mil to purchase the policies to bring in $65mil.

I'm no stock broker but that looks like a much better GUARANTEED return on your money than investing in the market.

Looks like Mr Kaye is under some investigation right now. There also is a problem with personally benefiting from the fund raising endeavors as a member of the foundation.

I don't think FAU has reached a decision yet whether to go this way or not. I have a feeling with all the negative publicity its getting, they won't do it.