The Padres Owe Fernando Tatís Jr. $340 Million. He Owes an Investment Fund Millions From His Payday.
Tatís signed a contract with Big League Advance, an unusual investment fund that pays minor-league players money up front in exchange for a share of their future MLB earnings.
The Big League Advance payouts aren’t loans. If the player never reaches the majors, he doesn’t have to reimburse the money, and Big League Advance loses its stake. When a player turns into a MLB star like Tatís, Big League Advance receives a huge payout. In effect, Tatís is now funding a bunch of minor-leaguers who will never make it. It’s similar to a venture capital fund that backs lots of startups that fail, in return for a gigantic payday from getting in early on a company like Facebook or Uber.
Venture capital for all the things.
Citi Can’t Have Its $900 Million Back
Last August, Citigroup Inc. wired $900 million to some hedge funds by accident. Then it sent a note to the hedge funds saying, oops, sorry about that, please send us the money back. Some did. Others preferred to keep the money. Citi sued them. Yesterday Citi lost, and they got to keep the money. I read the opinion, by U.S. District Judge Jesse Furman, expecting to learn about the New York legal doctrine of finders keepers—more technically, the “discharge-for-value defense”—and I was not disappointed. But I was also treated to a gothic horror story about software design. I had nightmares all night about checking the wrong boxes on the computer.
People Are Worried About Payment for Order Flow
Okay let’s do payment for order flow again, because people are talking about it and that always stresses me out. Here’s an intuitive description of how it works.
The Shocking Meltdown of Ample Hills — Brooklyn’s Hottest Ice Cream Company
They had $19 million, a deal with Disney, and dreams of becoming the next Ben & Jerry’s. Then everything fell apart.
SPAC Magic Isn’t Free
Maybe the biggest capital markets story of 2020 was the boom in special purpose acquisition companies. A SPAC raises money from investors in a “blank check” initial public offering, puts the money in a pot, and goes out and looks for a private company to merge with. 1 In the merger, the target private company gets the money in the pot and the SPAC shareholders get shares in the new combined company; the result is that the target company has raised cash and gone public through the merger. It is an alternative to an IPO that can offer more speed and certainty and perhaps even a better price.
We have talked about SPACs before, but I have somehow neglected to express appreciation for the clever and elegant bit of financial engineering at the heart of the SPAC structure. Here’s how a SPAC works:
The 8th Wonder Of The World
In exchange for billions in tax subsidies, Foxconn was supposed to build an enormous LCD factory in the tiny village of Mount Pleasant, creating 13,000 jobs. Three years later, the factory — and the jobs — don’t exist, and they probably never will. Inside the empty promises and empty buildings of Wisconn Valley.
In short, I enjoy and appreciate The Times. And after paying over $300 a year for nearly a decade, and having read the Times on a near-daily basis for my entire adult life, I feel I qualify as a good customer. And they repay me by deliberately annoying me several times a day, every day, when I attempt to read the product I’m paying them for. How could one not find this outrageously annoying?
The lives upended around a $20 cheeseburger
A cash-strapped rancher, a virus-stricken meatpacker, an underpaid chef, a hungry engineer: The journey of a single burger during a pandemic
A bit dramatic, but a good look at the food supply chain.
The New York Times is opting out of Apple News
Unsubscribe: The $0-budget movie that ‘topped the US box office’
But on 10 June, one box office-topping movie was watched by just two people, in one cinema. Unsubscribe, a 29-minute horror movie shot entirely on video-conferencing app Zoom, generated $25,488 (£20,510) in ticket sales on that day. Nationwide, the movie hit the top of the charts, according to reputable revenue tacker Box Office Mojo. The budget of the movie: a flat $0. How was that possible?
Perhaps the highly anticipated moment that I’m going to contextualize today is totally inevitable, in a way. For years, there’s been a rumbling that Apple would take its knowledge of the ARM processor architecture and bring it to its desktop and laptop computers. Next week, at a virtual Worldwide Developers Conference, the iPhone giant is expected to do just that. Of course, many will focus on the failed partner, the jilted lover of the business relationship that led to Apple’s move to vertically integrate: Intel. But I’m interested in the demise of the platform Intel vanquished on its way to taking over Apple—and the parallels that have emerged between PowerPC and Intel over time. Today’s Tedium dives into Apple’s long list of jilted processor partners, leaning closely on the shift from PowerPC to Intel. Keep Apple happy, or else.
Greetings and salutations internet person! Have you ever pissed off a customer so much they bought a domain and stood up a website to shit on your asinine and boneheaded business practices? GE just did.
I just wanted a tall, cold, refreshing glass of water at 3am only to be greeted by a fucking atomic countdown on my trusty cold water and ice dispensing pal.
How to decode a data breach notice
But data breach notifications have become an all-too-regular exercise in crisis communications. These notices increasingly try to deflect blame, obfuscate important details and omit important facts. After all, it’s in a company’s best interest to keep the stock markets happy, investors satisfied and regulators off their backs. Why would it want to say anything to the contrary?
Wanted: Somewhere, Anywhere, to Store Lots of Cheap Oil
Storage schemes get creative, with would-be investors looking to sock it away in giant pools, caves or anywhere else
Touch And Go
Pondering the disastrous fate of the HP TouchPad, an early tablet based on WebOS that’s best known for being the subject of a well-remembered fire sale.
Point Of Saturation
75k - The number of restaurants around the world that use the Aloha point of sale system. Aloha is an industry stalwart that has managed to stay relevant while often still looking like it was designed in 1998.
Plus some NCR history.
Desperate for High-Paying Wall Street Jobs, Penn Students Try Buying Their Way Into the Right Classes
Five years ago, sophomores like Current might not have been so desperate. Back then, finance companies hired for their all-important junior-year summer internships just a few months ahead of time. But recently, in an attempt to scoop up the best students before anyone else, companies have moved up the timeline. It’s now standard practice for finance firms to recruit sophomores like Current — who has only completed three semesters of college and hasn’t even declared a major — for those same junior-year summer internships a full 18 months in advance.
SoftBank’s $375 Million Bet on Pizza Went Really Bad Really Fast
By the time Garden headed back down the driveway, he was well on his way to a SoftBank investment of $375 million, with double that money on the table if his business gained traction. But that’s not what happened. Instead, Zume marks one of the biggest recent disappointments in SoftBank’s portfolio. As of this year it no longer makes or delivers pizzas. In January, Zume cut 360 jobs, leaving a little over 300 employees, and said it would focus on packaging and efficiency gains for other food delivery companies.
Levine commentary: https://www.bloomberg.com/opinion/articles/2020-02-14/robot-pizza-trucks-hit-some-bumps
Just, what a closed loop it is. You run a pizza delivery business. You craft a pitch calculated to convince Masayoshi Son that your pizza delivery business will change the world. You meet with Masayoshi Son. He convinces you that you will change the world. Now you are all believers, all in it together. He hands you piles of money. You go home and weep to your friends, “I am going to change the world.” The friends are like “wait what with the pizzas?” But it is too late for skepticism, you have the money, the robots are in the trucks, they are fanning out across town, the cheese is everywhere, they cannot turn back.
People Are Jailbreaking Used Teslas to Get the Features They Expect
Last week, Jalopnik ran an article about a person who bought a used Tesla from a dealer—who in turn bought it at auction directly from Tesla under California’s lemon law buyback program—advertised as having Autopilot, the company’s Advanced Driver Assistance System. The entire Autopilot package, which the car had when the dealer bought it, costs an extra $8,000. Then, Tesla remotely removed the software because “Full-Self Driving was not a feature that you had paid for.” Tesla said if the customer wanted Autopilot back, he’d have to fork over the $8,000.
Mistakes Were Made
Take the time to learn about ERP software, and it’s easy to realize small errors compound quickly. It might seem like we’re going to be dunking on SAP here, but as we previously noted during our recent dive into updates to NFL quarterback statistics, when you’re really, really good at something difficult, you’re allowed more errors than others. By any measure, SAP is a titan of logistics and widespread enough as to be vital to the world economy. So when they fail, they fail in ways that have some spectacular consequences.
Case in point: the Halloween without various Hershey’s candies.
However, when the SAP Hana system they were “upgrading” to took three years to get to operational use, Lidl dumped the project … after spending well more than half a billion dollars. The move was reported not through a lawsuit but a simple memo that explained “the strategic goals as originally defined by the project could not be achieved without the retailer having to spend more than it wanted.”
Oh well, we tried, thanks for the money!