Comments on: What the Muschamp deal means

By: JDLooneyII

JDLooneyII — Thu, 20 Nov 2008 16:33:29 +0000

Otherwise good analogy, but you left out the volatility smile and the theta. That said, I agree – it does seem like an appropriate hedge.

By: Horncasting

Horncasting — Thu, 20 Nov 2008 16:12:22 +0000

To put the extra $450-$500k into perspective – this is basically the equivalent of the ticket proceeds from less than half of the North End Zone expansion for 1 game.

Since I’ve sat in those seats every home game this year, all I have to say is You’re Welcome.

By: uthookem

uthookem — Thu, 20 Nov 2008 13:55:22 +0000

“If it translates in to shitstomping aTm, then its money well spent.”

Not quite. If it translates to an MNC in 2009 and at least two Big XII titles between 2009-2013, then it was money well spent.

Hook ‘em!

By: Newbie

Newbie — Thu, 20 Nov 2008 13:41:25 +0000

I read on the AAS that this was a family move for Muschamp. Plus, I see the extra 400k paid to coach boom as the cost for keeping this badass DC for a couple of years + no distractions of HC offers.

If it translates in to shitstomping aTm, then its money well spent.

By: Orbea

Orbea — Thu, 20 Nov 2008 07:29:52 +0000

HJ I think that there is a better way to look at this besides a call option, which by the way is a very good explanation. Had we not taken this route then we would been hiring a head coach. That head coach would have had a buy out clause. More likely than not the buy out clause would have been over $2 million. Over the next 5 years we are going to pay a little over $2 million “extra” to WM. So, basically what we have done is pre pay an expense that we were going to pay anyway. If WM does not become the next HC, then we are spending $425K a year for the next few years not to have the defense disrupted. So, the cost is either a pre paid expense (most likely) or the cost of business interruption insurance.

By: Spawn of Cthulhu

Spawn of Cthulhu — Thu, 20 Nov 2008 04:49:45 +0000

A little google brings up the legendary texlarry from the original austin360 board (it was ironic because he had heard from connections that Gary Barnett was going to be the next coach of UT, and was unhappy that MB got the job instead).
The other classic quote from the board: “he committed to the Oklahoma freakshow, but i’m the idoit?” This one’s harder to explain, but a sooner fan apparently posted it in all seriousness. No one really understands what it’s supposed to mean.

By: Vasherized

Vasherized — Thu, 20 Nov 2008 04:21:22 +0000

Buy 100 Puts January Mike Sherman

By: Steve Nebraska

Steve Nebraska — Thu, 20 Nov 2008 03:27:59 +0000

Wouldn’t the actual price of the option be the delta between the 900k and the salary we’d be paying the guy who we would have to hire to replace Muschamp after this season?

By: TKO

TKO — Thu, 20 Nov 2008 03:03:05 +0000

On second thought, should have phrased my question above more carefully: Who was that source and why was it ironic that he/she said it?

By: Atomic Teeth » Blog Archive » Muschamp and Defensive Stats that Matter (and Mizzou, of course)

Thu, 20 Nov 2008 03:02:57 +0000

[...] of writing, HenryJames at Barking Carnival does a swell job of explaining the Muschamp play by comparing it to buying a call option. Interesting way to put [...]