Deferred money deferential

Tapate50

Tapate50

Well-known member
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.
 
Maybe mlb should just use the avg per year toward the luxury tax. Ohtani's would be 70 million for the next 10 years.
 
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.
 
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.
 
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
 
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Metaphysicist said:
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
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The Nationals also did this with some of their bigger contracts leading up to their title.
 
SJ24 said:
MLB wants the Dodgers to be good.

Do you blame them?
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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.
 
msstate7 said:
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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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.
 
striker42 said:
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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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.
 
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.
 
Tapate50 said:
History hasn't shown this.

We kept thinking this on the Phillies and Mets too.

The money just keeps flowing.
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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.
 
Tapate50 said:
History hasn't shown this.

We kept thinking this on the Phillies and Mets too.

The money just keeps flowing.
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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.
 
Carp said:
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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It caught up to the Nats after the geriatric owner who handed out all those contracts with deferrals died.
 
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