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Thread: Deferred money deferential

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    It's OVER 5,000! Tapate50's Avatar
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    Deferred money deferential

    Anyone else see this as a major issue going forward?

    Signing someone to a 700M deal with MOST of it deferred seems like a real issue and a poor standard to set. I know its been done before... Manny, Bobby Bo (Mets and O's), and others. But in those instances we are talking less than 2M. Not MOST of the of the contract.
    Ivermectin Man

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    Maybe mlb should just use the avg per year toward the luxury tax. Ohtani's would be 70 million for the next 10 years.

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    I think deferred money should be banned. You can pay 1 million a year for the first 9. But the rest needs to be paid that last year. Deferred money is just a way to kick the penalty down the road when everyone knows that penalty will be higher. They are loop holing this and mlb doesn’t care. Why there are so many crappy teams. They can’t afford to keep up with the big markets that are catered to by mandick.
    Coppy

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    I wonder if the players union would fight a cap on the percentage of a contract that can be deferred. Deferred money isn't favorable to players as money now is worth more than money in the future. However, capping deferred money would probably mean a lower total figure on these kinds of contract. I think the value would probably come out in a wash.

    Personally, I think they should put a cap on deferred money at 10% of the value of the contract. If you want to sign a guy to a contract for $700 million for 10 years, then at the end of 10 years you should have paid out at least $630 million.

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    Not Actually Brian Hunter Metaphysicist's Avatar
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    Dodgers have been doing this repeatedly at this point:

    Betts: $115M in salary is deferred ($8M/year of 2021-25 salaries, $10M/year of 2026-27 salaries, $11M/year of 2028-32 salaries); deferred money to be paid each July 1, 2033-44: $8M/year in 2033-37, $10M/year in 2038-39, $11M/year in 2040-44.

    Freeman: $57M deferred without interest ($7M per year in 2022-24 and $12M per year in 2025-27) deferred money will be paid in: 8 annual installments of $4M each July 1, 2028-35, and 5 annual installments of $5M each July 1, 2036-40
    Last edited by Metaphysicist; 12-11-2023 at 10:04 AM.

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    MLB wants the Dodgers to be good.

    Do you blame them?

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    Quote Originally Posted by Metaphysicist View Post
    Dodgers have been doing this repeated at this point:

    Betts: $115M in salary is deferred ($8M/year of 2021-25 salaries, $10M/year of 2026-27 salaries, $11M/year of 2028-32 salaries); deferred money to be paid each July 1, 2033-44: $8M/year in 2033-37, $10M/year in 2038-39, $11M/year in 2040-44.

    Freeman: $57M deferred without interest ($7M per year in 2022-24 and $12M per year in 2025-27) deferred money will be paid in: 8 annual installments of $4M each July 1, 2028-35, and 5 annual installments of $5M each July 1, 2036-40
    The Nationals also did this with some of their bigger contracts leading up to their title.

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    Quote Originally Posted by SJ24 View Post
    MLB wants the Dodgers to be good.

    Do you blame them?
    MLB should want parity. This is one of the many reasons why the nfl has left mlb so far behind they can't see them in the rear view. Another reason is the snail pace offseason.

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    Quote Originally Posted by msstate7 View Post
    MLB should want parity. This is one of the many reasons why the nfl has left mlb so far behind they can't see them in the rear view. Another reason is the snail pace offseason.
    MLB needs a salary floor and to remove the awful owners like Nutting.

    We need owners like Mark Cuban and Jerry Jones.

    Steve Cohen is GREAT for the sport and a start.

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    The teams that refuse to spend should be put on the market by mlb. Let different cites and owners put in bids on them

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    Quote Originally Posted by striker42 View Post
    I wonder if the players union would fight a cap on the percentage of a contract that can be deferred. Deferred money isn't favorable to players as money now is worth more than money in the future. However, capping deferred money would probably mean a lower total figure on these kinds of contract. I think the value would probably come out in a wash.

    Personally, I think they should put a cap on deferred money at 10% of the value of the contract. If you want to sign a guy to a contract for $700 million for 10 years, then at the end of 10 years you should have paid out at least $630 million.
    I think a cap on signing bonus and amount deferred is probably a good rule of thumb that could be agreeable. And also a length limit.

    We can't pay Ohtani 70 dollars a day for 10 million years.
    Ivermectin Man

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    Honestly it will catch up with them at some point.
    Get off my lawn!

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    Quote Originally Posted by bravesfanforlife88 View Post
    Honestly it will catch up with them at some point.
    History hasn't shown this.

    We kept thinking this on the Phillies and Mets too.

    The money just keeps flowing.
    Ivermectin Man

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    Somewhere Bobby Bonilla scoffs at these suggestions

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    Anytime Now Frankie...
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    Our kids will be making fun of the Dodgers every July 1st the way we currently do the Mets for the Bobby Bonilla deal.

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    The bill always comes due. Just like the Nationals situation after they won the series in 2019. The Dodgers will stars will age out and they will be left with immovable albatross contracts and a team that struggles to play .500 ball. Not even the Dodgers can print that much money, and the luxury tax hits will hamstring their ability to add talent through the draft and international market (which they've already started to experience). But hey, they should be really, really good for the 3-4 year window these guys have left. They better hope punting the next 5-10 years after that is worth it.

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    Quote Originally Posted by Tapate50 View Post
    History hasn't shown this.

    We kept thinking this on the Phillies and Mets too.

    The money just keeps flowing.
    Honestly by the time the Dodgers will owe Freeman and Betts their deferred money, the $14-16MM will likely be the going rate for a middle reliever or bench bat.

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    Quote Originally Posted by Tapate50 View Post
    History hasn't shown this.

    We kept thinking this on the Phillies and Mets too.

    The money just keeps flowing.
    It caught up to the Nationals. And I would argue it sort of did catch up to the Mets, although they were able to luckily get out it. But they will be expected to be a sub .500 team again next year.

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    Quote Originally Posted by Carp View Post
    It caught up to the Nationals. And I would argue it sort of did catch up to the Mets, although they were able to luckily get out it. But they will be expected to be a sub .500 team again next year.
    It caught up to the Nats after the geriatric owner who handed out all those contracts with deferrals died.

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    Sooo…. Too much?
    Ivermectin Man

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