Crazy ROFR and Fidelity question...

[JessLCH]

Do you think Disney exercises ROFR on contracts through Fidelity more, less or the same as other re-sellers? Asking because they are the agency Disney refers sellers to, right? Also do you think the admin fee makes an impact?

 

[NoleFan]

Not sure. However, it seems that those who post here that have gotten some of the best deals on contracts were from Fidelity. Maybe those who list with Fidelity are in a "need to sell now" situation which explains the lower pricing??

 

[Missyrose]

Do you think Disney exercises ROFR on contracts through Fidelity more, less or the same as other re-sellers? Asking because they are the agency Disney refers sellers to, right? Also do you think the admin fee makes an impact?

Actually, I'd argue the opposite. Since Disney funnels the distressed contracts to Fidelity and Disney doesn't like dealing with the hassle of distressed contracts, you might be able to get a contract through a little easier. There's no rhyme, reason or pattern you can put toward Disney's ROFR practices, especially right now. You'll only make yourself crazy trying to reason a contract through ROFR. Pay what you think the contract is worth and hope for the best.

And the Fidelity admin fee has nothing to do with ROFR. I'm quite sure that Fidelity doesn't charge Disney the fee when Disney takes a contract through ROFR.

 

[disneynutz]

The business relationship between Disney and Fidelity is unknown. DVD will say that they only refer sellers to Fidelity but I think that there is more to it. In the past Fidelity has always have a disproportionate number of smaller contracts available for sale compared to other brokers.

Is it possible that Disney uses Fidelity to sell ROFR contracts or foreclosed or take back contracts?

Bill

 

[JimMIA]

And the Fidelity admin fee has nothing to do with ROFR. I'm quite sure that Fidelity doesn't charge Disney the fee when Disney takes a contract through ROFR.

I would bet Disney DOES pay the administrative fee. If they don't, they are badly scamming the purchaser who lost out on the deal -- because they would NOT be paying the same price as the prospective purchaser. ROFR is the right to take the place of the prospective buyer at EXACTLY the same terms...not at a preferential price.

Is it possible that Disney uses Fidelity to sell ROFR contracts or foreclosed or take back contracts?

That sounds rather illogical to me. Why would Disney ROFR something at a low price, have the opportunity to resell it at a high price, and choose to resell it at a low price? Same with a foreclosure -- why would they want to sell at a low price when they have people on a waiting list to pay a high price?

 

[disneynutz]

That sounds rather illogical to me. Why would Disney ROFR something at a low price, have the opportunity to resell it at a high price, and choose to resell it at a low price? Same with a foreclosure -- why would they want to sell at a low price when they have people on a waiting list to pay a high price?

Sounds nuts to me too but maybe the cost to just dump the smaller contracts to Fidelity is less than the cost to process and resell the points. Maybe there is a size cut off and contracts under a certain size aren't worth messing with. How else did Fidelity get so many small contracts to sell?

Bill

 

[agie65]

Sounds nuts to me too but maybe the cost to just dump the smaller contracts to Fidelity is less than the cost to process and resell the points. Maybe there is a size cut off and contracts under a certain size aren't worth messing with. How else did Fidelity get so many small contracts to sell?

Bill

If the seller on your contract you buying from Fidelity is not Disney then it is directly from other owner, I have yet to see a contract from Disney in resale market from Disney in any size. Seems speculation that can not be validated and does not make sense.

 

[disneynutz]

If the seller on your contract you buying from Fidelity is not Disney then it is directly from other owner, I have yet to see a contract from Disney in resale market from Disney in any size. Seems speculation that can not be validated and does not make sense.

If Disney doesn't take title and just uses Fidelity as an agent you wouldn't see their name on a contract.

No different then a resale broker selling a contract and not being on title.

Bill