ziravan
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- Joined
- Apr 4, 2014
Imagine that DVC is essentially selling only the trust product. 170k points a month with say 85% being trust and 15% being deeded.
Assume the trust’s point system is a one for one match.
Now. DVC has four resorts on sale: RIV, AUL, CFW, Poly2. They can take the 145k monthly trust point sales and divide them how they see fit amongst the four resorts.
They can move AUL along to sellout, or RIV. etc.
And they control the back end. There WILL be language requiring surrendering unwanted points to DVC at a severe discount. Either pay the dues or give them back - essentially.
Now. DVC is controlling both the front and back end of the deal and killing resale.
Eventually, they’d be in a position to use ROFR to wreck havoc on resale. When you have a convenient pool to put points into, you can play ROFR games not heretofore dreamed of.
They will only advertise trust points and they will move to making the trust the dominant vehicle over time.
Today’s deeded owner will become a dying breed over time. But only because, being a deeded owner gives you more individual power in the system than DVC can imagine going forward.
Assume the trust’s point system is a one for one match.
Now. DVC has four resorts on sale: RIV, AUL, CFW, Poly2. They can take the 145k monthly trust point sales and divide them how they see fit amongst the four resorts.
They can move AUL along to sellout, or RIV. etc.
And they control the back end. There WILL be language requiring surrendering unwanted points to DVC at a severe discount. Either pay the dues or give them back - essentially.
Now. DVC is controlling both the front and back end of the deal and killing resale.
Eventually, they’d be in a position to use ROFR to wreck havoc on resale. When you have a convenient pool to put points into, you can play ROFR games not heretofore dreamed of.
They will only advertise trust points and they will move to making the trust the dominant vehicle over time.
Today’s deeded owner will become a dying breed over time. But only because, being a deeded owner gives you more individual power in the system than DVC can imagine going forward.