What happens with the contracts that Disney takes?

[ajiuo]

I’m just curious what happens to contracts after Disney take them.

- Do they have to resale them as is or do they just pool all the points that they get together and sell them in any increment that they want.

- If a contract has been stripped of points does Disney automatically get to reload the current use year or do they either have to sale them stripped or hold on to the points until they are replenished?

- Does Disney have to sell the points with the set use year, or can they change it?

 

[Stargazer65]

They can pretty much sell them in any increment they like, but they can't reload points that have been used because the number of total resort points is fixed.
I'm not sure about changing a use year...

 

[Bearval]

I’m just curious what happens to contracts after Disney take them.

- Do they have to resale them as is or do they just pool all the points that they get together and sell them in any increment that they want.

- If a contract has been stripped of points does Disney automatically get to reload the current use year or do they either have to sale them stripped or hold on to the points until they are replenished?

- Does Disney have to sell the points with the set use year, or can they change it?

In the past year or so DVD had been allowed to change the use year to any they want it to be.

 

[Stargazer65]

In the past year or so DVD had been allowed to change the use year to any they want it to be.

That's interesting. I would think it could create a glut of points at the same point every year if everyone wanted the same use year, but I guess it just works itself out?

 

[Marionnette]

That's interesting. I would think it could create a glut of points at the same point every year if everyone wanted the same use year, but I guess it just works itself out?

Use Years aren't evenly distributed throughout the year as it is and that doesn't cause issues. The December UYs are among the most common and September tend to be the rarest.

 

[macman123]

The points go back into the pool and they can sell them direct.

 

[Sandisw]

To add, the changing of UY can only happen if they have the points to sell since they can’t add points already stripped.

So, if someone wants a Dec UY and the have a Sept one in stock but it’s void of 2020 points, they can’t change it because the Dec UY is entitled to 2020 points.

They also have to make sure the pool of points stays balanced against u it’s as these are deeded interests. They can not sell someone a partial share of two units to make up the points either.

That is why some have said that certain contracts can be taken via ROFR because of the unit it is deeded to based on what else is still owned by DVD.

But in essence, ROFR basically allows DVD the right to buy and then add them to the points to sell direct.