Former Cardinals in the News (new thread)

Home The Cardinal Nation Forums Open Forum Former Cardinals in the News (new thread)

Viewing 25 posts - 401 through 425 (of 571 total)
  • Author
    Posts
  • #297171
    stlcard25
    Participant

    The Rays are typically so smart. What do they see in Matz that is different from what he gave us the last four years?

    #297175
    Brian Walton
    Keymaster

    Paid - Annual

    Nothing new here from the situation over the last two years. When it is convenient for Molina to stop by, he will.

    #297180
    jj-cf-stl
    Participant

    25, maybe they signed Matz based off 2025 results, with a lower expectation of innings than our signing. His splits are holding up. Curious on the financials.

    #297186
    blingboy
    Participant

    Paid - Annual

    Yadi and the org rubs me the wrong way with the cameo photo op/marketing gimmick hustle. He lacks commitment and neither the team nor the fans should kiss his but.

    #297189
    Brian Walton
    Keymaster

    Paid - Annual

    I imagine the Cardinals will take whatever they get from him, rather than seeing him line up with another organization. The media also fans the flames that there is more to it than there really is, IMO.

    #297247
    gscottar
    Participant

    Paid - Annual

    The Rays are typically so smart. What do they see in Matz that is different from what he gave us the last four years?

    They probably see that as a reliever he can be effective. Trying to make him a starter is just asking for trouble because you know the trip to the IL is imminent. This is two times in a row that Matz scored a deal on a nice walk year.

    #297251
    blingboy
    Participant

    Paid - Annual

    So, the Rays are paying $7.5 million a year for a reliever?

    #297253
    jj-cf-stl
    Participant

    The Rays tend to look at it as IP. They do whatever they want a let the press decide on “opener”, “starter” or “reliever” 😀
    Fangraphs has Matz 25′ value at 8.9mil

    #297255
    mudville
    Participant

    Paid - Annual

    Fangraphs has Matz 25′ value at 8.9mil

    Then the Rays must be thinking that they got a pretty good deal. I always admired the Rays for being a well run organization. In trying to understand, I can only say that ‘anyone can make a mistake’. This is a move that may actually cause attendance to go further down for the Rays.

    #297257
    blingboy
    Participant

    Paid - Annual

    Injury risk probably doesn”t factor in to fangraphs valuation imo. Maybe we will find out how the Rays like eating contract. Or maybe once attrition sets in this spring they flip him to somebody whose rotation imploded.

    #297260
    mudville
    Participant

    Paid - Annual

    I’m going to see if I can find the phone number for the Rays front office. I’m going to talk them into giving ME 15 millions bucks. I bet they’ll do it. These Winter Meetings have turned into a clown show. Now lets see what happens this afternoon with the Rule 5.

    #297278
    jj-cf-stl
    Participant

    Matz was good for us in 25′ and better w/Boston. That’s a good ballpark signing for Matz, off of a good platform season. The pitcher IL time is a roll of the dice.

    #297285
    gscottar
    Participant

    Paid - Annual

    So, the Rays are paying $7.5 million a year for a reliever?

    Yes

    #297305
    858booyah
    Participant

    Free

    Siani got released by Atlanta.

    #297385
    Brian Walton
    Keymaster

    Paid - Annual

    Siani was not released. He was DFAed and placed on outright waivers. Now claimed by LAD.

    #297431
    gscottar
    Participant

    Paid - Annual

    #297432
    gscottar
    Participant

    Paid - Annual

    #297649
    gscottar
    Participant

    Paid - Annual

    #297666
    CardsFanInChiTown
    Participant

    Free

    The Dodgers now owe over $1B in deferred money…. Wow. Edman is part of that which is why I put this here. Supposedly they “paid for Ohtani” and his $700m in year one.

    #297692
    gscottar
    Participant

    Paid - Annual

    Technically that is true but I think it is more complex than that. It is my understanding that MLB teams have to set aside deferred money in a separate account within two years of when it is earned. So it isn’t like the Dodgers are going to have to come up with $1B in “new money” ten years from now. That money will be sitting there in a separate account. The benefit to the team for doing so it that the money will be earning interest for them for ten years and the value of the money will be different a decade from now.

    MLB should tighten the rules on deferred money, tighten the rules on the CBT to where it is more like a salary cap, and they should install a salary floor.

    The odds of Manfred and the MLBPA agrreing to all of that are extremely low which is why we are headed to a lockout a year from now.

    #297712
    gscottar
    Participant

    Paid - Annual

    I stand corrected. Good luck Rays.

    Over/Under on first trip to IL? June 1 or July 1?

    #297719
    bicyclemike
    Moderator

    Paid - Annual

    “It is my understanding that MLB teams have to set aside deferred money in a separate account within two years of when it is earned. So it isn’t like the Dodgers are going to have to come up with $1B in “new money” ten years from now.”

    Interesting. I would think that the deferred money is shown on the balance sheet at the present value of the future payments. Thus the only actual cash needed is whatever is required for current obligations.

    But most professional baseball teams are privately owned, so they may have some different ways of reporting and perhaps the industry has specific requirements like the “2 years cash” deal.

    #297720
    gscottar
    Participant

    Paid - Annual

    This is what I got from a quick Google search:

    MLB deferred contracts let teams spread out massive player salaries over decades, reducing current cash impact and luxury tax hits by paying players after the contract ends, but the present value counts against the tax now; the team puts money into escrow, earning interest, with the player receiving the full (interest-adjusted) amount later, creating payroll flexibility for the team to sign more stars, as seen with Ohtani’s massive deferral for the Dodgers.

    How it Works

    Agreement: A player agrees to receive a portion of their salary later (e.g., 10-20 years after the deal ends).
    Present Value (PV): The total deferred amount isn’t what’s paid later; it’s discounted for time and interest (typically 5% annually in the CBA). The present value is what’s counted against the current year’s Luxury Tax.
    Funding: The team must set aside the present value of the deferred money into a secure, interest-bearing account (escrow) within a set timeframe (e.g., two years after earning).
    Payout: The player receives the full, original amount (plus accumulated interest) in the future, often long after retirement, while the team earns interest on the funds in escrow.

    Benefits for Teams (like the Dodgers)
    Payroll Flexibility: Reduces immediate cash outlay, allowing them to sign more star players within luxury tax limits.
    Luxury Tax Management: Lowers the Average Annual Value (AAV) for luxury tax purposes during the contract’s active years.
    Investment Income: Teams profit from the interest earned on the escrowed funds before paying the player.

    Example: Shohei Ohtani & Dodgers
    Ohtani’s $700M deal had $680M deferred over 10 years after his 10-year playing contract. He gets $2M/year now, but the Dodgers must fund the present value of the deferred $68M each year, a much smaller, but still significant, amount that counts on the books now.

    #297762
    Brian Walton
    Keymaster

    Paid - Annual

    #297763
    bicyclemike
    Moderator

    Paid - Annual

    Thanks for the info on deferred contracts, gscottar!

Viewing 25 posts - 401 through 425 (of 571 total)
  • You must be logged in to reply to this topic.

First-hand news and commentary on the St. Louis Cardinals™ and minor league system for over 25 years