VGC ROFR rumor

CastAStone

Model Citizen. Math and business nerd.
Joined
Jun 25, 2019
Just saw someone post on the DVC Fan Facebook page that a "DVC insider" said that DVC will be buying back all VGC contracts going through ROFR. Anyone else hear this?
I can’t find the post but that sounds incredibly unlikely. They would make just 25% on VGC at its average resale even at the higher price coming next month vs about 50% on most ROFR’d contracts.

Perhaps they are planning to grab a few dozen though to clear the wait list, it is easy money, even if it ties up capital. But will they keep ROFRing long term, or even if they drive the price up $15 with buybacks? No, I doubt it.
 

HappyThoughtsTees

Mouseketeer
Joined
Jul 15, 2020
I can’t find the post but that sounds incredibly unlikely. They would make just 25% on VGC at its average resale even at the higher price coming next month vs about 50% on most ROFR’d contracts.

Perhaps they are planning to grab a few dozen though to clear the wait list, it is easy money, even if it ties up capital. But will they keep ROFRing long term, or even if they drive the price up $15 with buybacks? No, I doubt it.
The original poster took down the part of his response that said the insider told him this would be starting 1/1/21. It was within a thread about purchasing VGC resale. I have a very well priced VGC contract in ROFR right now, so I fear we submitted it at exactly the wrong time.
Thanks for your insights!
 

Zurezo

Earning My Ears
Joined
Apr 23, 2020
Well I will let you know, I got one back in June of 2020 for 155/pt and just won another at 195/pt.

I have a feeling they will buy mine back since its moving to 295/pt direct and the wait list if full.
 

KAT4DISNEY

Glad to be a test subject
Joined
Mar 17, 2008
Never have they ever "ROFR'd all at any location". Of course there aren't a lot of transactions for VGC but I find that comment very suspect.
 

JETSDAD

DIS Veteran
Joined
Jan 7, 2016
That doesn't really make any sense. They may set a limit and buy anything under that but otherwise they could end up potentially paying extremely high prices.
 

BruinEd03

DIS Veteran
Joined
Jun 23, 2013
Just saw someone post on the DVC Fan Facebook page that a "DVC insider" said that DVC will be buying back all VGC contracts going through ROFR. Anyone else hear this?
Given that DVC isn't even accepting waitlists for VGC, it makes sense to buy a bunch for now to clear up some of the waitlist. Especially if people on the waitlist are indicating that they would be willing to pay ASAP in light of the increasing prices for VGC. Would be easy money for DVC.
 

KPeterso

DIS Veteran
Joined
Jul 26, 2004
They could just be planning to sit on them and flip them later at break even. Takes some points out when they still haven't reopened VGC.
That is along my lines of thinking. VGC has been closed 10 months now so there are a lot of owners who have a lot of banked points and/or unused current year points. I only own 100 points at VGC and I believe I banked 80 2019 points (UY December) so I have a lot that can be used. In my case, my VGC points are Exclusive Use points (EUPs) and I really am hoping to be able to use them there this year. But sadly, am not super hopeful since the Governor is being very strict about opening and the Covid numbers in SoCal are so bad right now. I am local and have the night of 1/28 banked (using banked 2019 Feb UY AKV points that are expiring). And then a few nights in July for the anniversary (with a couple more I just waitlisted just because). And will book for October and November for a couple nights too. I just wonder if they want to get some points out of circulation for even a short-ish period of time to help with balancing the mess that is now VGC points.
 

M:SpilotISTC12

Mouseketeer
Joined
Sep 23, 2020
I just wonder if they want to get some points out of circulation for even a short-ish period of time to help with balancing the mess that is now VGC points.
This works in Disney's favor two fold. They can buy them back and sell for more and take some points out of circulation. Kind of a win win.
 

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
Never thought about the buy back because of it not being open. As soon as they do, it takes all those extra points out of the system.

I wonder how many VGC contracts sell in a typical year on the resale market, It is so small that maybe even buying all back temporarily won’t amount to much?
 

CastAStone

Model Citizen. Math and business nerd.
Joined
Jun 25, 2019
Never thought about the buy back because of it not being open. As soon as they do, it takes all those extra points out of the system.

I wonder how many VGC contracts sell in a typical year on the resale market, It is so small that maybe even buying all back temporarily won’t amount to much?
DVC Resale Market reported selling 82 through November 2020. So maybe 300ish? AFAIK VGC resales data is not available online, only in person in Orange County’s records.
 

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
DVC Resale Market reported selling 82 through November 2020. So maybe 300ish? AFAIK VGC resales data is not available online, only in person in Orange County’s records.
Thanks. So, more than I thought but if there are loaded ones, maybe those become more attractive given the shut down?
 

LAX

DIS Veteran
Joined
Mar 13, 2016
They could just be planning to sit on them and flip them later at break even. Takes some points out when they still haven't reopened VGC.
I am not sure either of these reasons make sense (at least to me), especially during the current economic climate. I don't follow corporate financial news closely, so I am not sure how much money Disney is still losing. Thus, why would Disney/DVD burn cash to buy a bunch of VGC contracts only to sit on them to be flipped later? With regards to taking points out of the system, why would DVD care? All it really needs to do is extend the points a few months after VGC reopens and if owners can't get a reservation, it's not DVD's problem and won't cost it a dime. Plus, VGC points can technically be used at WDW resorts as well and some of them have been opened for a while.

LAX
 

pkrieger2287

Senior Editor - DVC Fan
Moderator
Joined
May 12, 2017
We also can't rule out the potential of beginning a pricing plan for Disneyland Hotel DVC, but that suggests they think ahead which hasn't been the theme recently. That being said though, I just can't see them buying back everything.
 

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