Are escrows good for fantasy football?

Team Legacy · Post by **Team Legacy** » Fri May 14, 2010 7:59 am

Originally posted by RiFF:
Are all Main Event monies escrowed including League prizes and prizes below the $100,000 Grand Prize. Or is it just the Grand Prize being escrowed. If League prizes are being escrowed, how does the escrow agent audit the accuracy of the escrow deposit. More leagues would require more escrow. Under any circumstance does the FFPC have access to the escrowed funds? What if the amount in escrow is insufficient to pay all prize winners, is the escrow agent liable to make up the difference? How would he determine who to pay in the event of a shortfall? Is the escrow agent bonded? A number of ancillary leagues have signifcant payouts, why aren't those escrowed (cost I imagine)? Does the current escrow agent have any affiliation or working relationship with the FFPC principals outside of his working relationship as escrow agent? (any conflict of interest) When are escrow funds deposited with the escrow agent? Prior to the start of applications based on anticipated participation, as applications are received or after it is determined what the final escrow amount is based on participation? If it's the latter, what protection is provided for the prize monies prior to deposit with the escrow agent? If it's decided by the principals not to escrow monies how would the players become aware of it if the principals chose not to divulge this information? Would you still advocate escrowing if you were part of a large organization rather than just a couple guys with a good idea? If so, why; if not, why not?
Just a stream of consciousness...I'm sure I missed a number of other questions that probably should be asked. Great questions! Let me recap to make sure I have them addressed tonight:

Are all Main Event monies escrowed including League prizes and prizes below the $100,000 Grand Prize. Or is it just the Grand Prize being escrowed.

Under any circumstance does the FFPC have access to the escrowed funds?

Is the escrow agent bonded?

A number of ancillary leagues have signifcant payouts, why aren't those escrowed (cost I imagine)?

Does the current escrow agent have any affiliation or working relationship with the FFPC principals outside of his working relationship as escrow agent?

When are escrow funds deposited with the escrow agent?

If it's decided by the principals not to escrow monies how would the players become aware of it if the principals chose not to divulge this information?

Would you still advocate escrowing if you were part of a large organization rather than just a couple guys with a good idea?

King of Queens · Post by **King of Queens** » Fri May 14, 2010 8:03 am

Originally posted by Alex.:
quote:Originally posted by Greg Ambrosius:
Scott, good news and I'm sure Lou knows a lot more about escrow accounts than any of us do. Enlighten us Lou and let us know if industry-wide EVERYONE should do that. I will certainly do my best, Tom. [/QUOTE]Looking forward to hearing Dave's viewpoints tonight!

Team Legacy · Post by **Team Legacy** » Fri May 14, 2010 3:09 pm

50 minutes away until we hear all the answers we want to know on Escrow. Great questions gang!

Coltsfan · Post by **Coltsfan** » Fri May 14, 2010 5:02 pm

Alex did a great job on the show tonight. He basically said that he felt like there was no reason at all for the nffc to escrow given the size of the company and backing by Liberty.

The thing I took away is that it's not really a true escrow in that the attorney writes checks to the winner as the ffpc can draw money out of the escrow at will. The protection comes in that there is separation of funds from the escrow account and operating account. I can't imagine this costing a lot of money since there really isn't a guarantee. But I do like the added layer of protection against unintentional misuse of funds.

Wayne

Greg Ambrosius · Post by **Greg Ambrosius** » Sun May 16, 2010 12:50 pm

Originally posted by Coltsfan:
Alex did a great job on the show tonight. He basically said that he felt like there was no reason at all for the nffc to escrow given the size of the company and backing by Liberty.

The thing I took away is that it's not really a true escrow in that the attorney writes checks to the winner as the ffpc can draw money out of the escrow at will. The protection comes in that there is separation of funds from the escrow account and operating account. I can't imagine this costing a lot of money since there really isn't a guarantee. But I do like the added layer of protection against unintentional misuse of funds.

Wayne Sorry about that Alex. I read Scott's post as I was packing the getaway car for the kids' mini-vacation and must have thought of Lou for some reason.

I always get you two mixed up.

It wasn't intentional, I promise.

Glad to hear the show went well. I don't disagree with Alex's thoughts involving us, but again this is still an industry topic that I wish was taken more seriously. There is an upcoming industry trade conference and I'd be disappointed if this topic isn't part of the conversation. I'm no longer involved with the FSTA, but someone should suggest this to those involved.