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  • in reply to: Ohtani Dodgers 10 Years/$700M #239810
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    Here is the follow-up CBA quote. It’s obvious Samson (if he’s the one who said it) is absurdly wrong when he said the Dodgers could put the deferred funding in an account for just one day, then do whatever they wanted with it after that.

    “Unless the Uniform Player’s Contract provides otherwise, a Club may fund deferred compensation obligations in such manner as it elects, provided that: (a) the funding method used by the Club must be such that the amount(s) funded are exclusively for the uses and purposes of satisfying the deferred compensation obligation(s) being funded; (b) the amount(s) funded are maintained in the form of unencumbered assets comprising cash or cash equivalents and/or registered and unrestricted readily marketable securities, unless a Club obtains the Parties’ prior written authorization of an alternative form; and (c) such amount(s) funded are subject to the claims of the Club’s general creditors. Each Club shall certify quarterly to the Office of the Commissioner by January 31, April 30, July 31, and October 31 of each year (and the Office of the Commissioner shall provide such certifications to the Association within 30 days of their receipt) the manner in which its deferred compensation obligations that were required to be funded by the immediately preceding July 1 have been funded. In addition, upon each quarterly certification, each Club shall provide to the Office of the Commissioner all records relating to its deferred compensation funding arrangements, and the Office of the Commissioner shall supply any such records to the Association upon request.”

    in reply to: Ohtani Dodgers 10 Years/$700M #239809
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    gscott, a lot of fail in what that guy is saying. Admittedly I just listened to the part you pointed me to, but that part is certainly false if the current CBA is to be followed. After that, I didn’t feel compelled to listen to Samson bellow any longer.

    First, some contract facts, regardless of what the CBA says. These are vital to this discussion. Ohtani’s contract earnings by year are as follows.

    2024 = 70MM (68MM deferred to 2034)
    2025 = 70MM (68MM deferred to 2035)
    2026 = 70MM (68MM deferred to 2036)
    2027 = 70MM (68MM deferred to 2037)
    2028 = 70MM (68MM deferred to 2038)
    2029 = 70MM (68MM deferred to 2039)
    2030 = 70MM (68MM deferred to 2040)
    2031 = 70MM (68MM deferred to 2041)
    2032 = 70MM (68MM deferred to 2042)
    2033 = 70MM (68MM deferred to 2043)

    So, each of the 10 years in the contract has a 10-year deferment of $68MM. Today’s present value of $68MM deferred by 10 years is $44MM, when calculated per the factors specified in the CBA (e.g., 5% discount rate). When you add $44MM to the $2MM they will actually pay him each contract year, you get $46MM. Multiply that by 10 years and you get $460MM. That’s why this contract is spoken of as a $460MM contract, and not a $700MM contract, when talking about things like the luxury tax and funding of the deferred portion. That’s why the present value of the deferments is 10 X $44MM = $440MM, not $680MM.

    Now let’s look at a couple of relevant CBA references that are discordant with the podcaster’s statements. This is from Article XVI of the 2022 – 2026 Basic Agreement (CBA), beginning on page 89. The bold emphasis is mine. It says deferred compensation:

    “…..must be fully funded by the Club, in an amount equal to the present value of the total deferred compensation obligation, on or before the second July 1 following the championship season in which the deferred compensation is earned.”

    The above CBA quote is key to understanding how the podcaster errs in two ways. First, it’s not the total $680MM deferment that must be funded. It’s the present value ($440MM) of the deferment. Second, it’s not all funded upfront at the beginning of the contract. It’s funded year-by-year since that’s the way Ohtani’s contract is structured. If Ohtani’s contract deferment was for all $680MM to be paid in 2034, then yes, it would all be funded in 2026. That’s the example the podcaster gave, all deferred money was paid in one year after the contract in his hypothetical. That’s not how Ohtani’s contract is structured.

    The next absurd thing you heard in that podcast is the Dodgers would have to “show” MLB the funding of $680MM (wrong) for just one day a year (wrong again), and then could do whatever they want with the money (wrong yet again). Here comes that pesky CBA Article XVI again. Since this post is already so long, I’ll put it in a separate post to follow.

    in reply to: Ohtani Dodgers 10 Years/$700M #239752
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    forsch31 said:

    Actually, if I understand correctly, the Dodgers have to fund 95% of the deferred money at the beginning of the contract. They can’t put off the expense until the time the deferrals start.

    and 1964cards then asked:

    By fund, do you mean place the funds in a custodial account?

    Here’s my clarification based on wording in the current CBA. I also read an LA Times article which says pretty much the same.

    Deferred money has to be funded by the second July 1 after the season in which it is earned. So it’s done on an annual basis, not all at the beginning. Plus, the present value of the deferred amount is what must be funded, not the full deferred figure.

    So let’s look at 2024 when Ohtani will earn $68 million in deferred money (deferred until 2034). That has a present value of approx $46 million today. So, the Dodgers must fund just the present value by July 1, 2026, to cover the $68 million they’ll have to pay Ohtani in 2034. Then, you do the same thing again the next year, i.e., Ohtani will earn $68 million in deferred money in 2025 that will actually be paid in 2035.

    The funding for the deferred payments has to be in cash or readily marketable securities.

    I can take a guess at where the “95%” figure came from that forsch31 stated. The CBA stipulates present value calculations use a 5% annual discount rate. You can think of that as an annual percentage rate at which a given amount of of money loses purchasing power (sort of like an inflation rate, or an interest rate at which your money can grow over a year). A 5% annual discount rate applied over a 10-year deferment period, like we are talking here, will take the present value way below 95% of the deferred amount.

    in reply to: Ohtani Dodgers 10 Years/$700M #239751
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    So Ohtani is making about the same baseball salary in 2024 that Paul DeJong is? Something is wrong the system.

    Haha, gscott! You must be forgetting PDJ plays very good defense at the most important position on the field, while Ohtani is just a DH.

    Now if Paulie could somehow figure out how to get those 10 additional years of $68 million dollar annual payments down the road…..

    By deferring, Ohtani simply did what all of us everyday folks have to do with social security. Do I take a lesser payment beginning at age 62, or do I wait until 70 and get larger payments, i.e., when am I going to die? Ohtani must be thinking he’s not going to kick the bucket over the next 20 years. Although, I suppose if he does, his estate will still collect all the deferred money, unlike what happens with social security. But hey, he’s not even married, is he? His dog will be set for life though.

    in reply to: Should the Cards extend Goldschmidt? #239688
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    I agree. It’s the same situation with Molina in 2018, Carpenter in 2019, and Mikolas in 2023. There was no reason to sign these guys to an extension early on. We aren’t getting a discount and taking on all the risk.

    Two of these are not like the other two, but yes, the Cards need to be smarter on these type deals. Pujols surprised me on the positive side for a farewell deal. Like Pugs said, it’s easy to forget how much Goldy’s glove brings. In 2022, I would’ve watched the Cards just to see the infield play defense. Or maybe that was 2021, or both years.

    Regardless, any deal made needs to be consistent with an honest projection of Goldy’s baseball performance going forward and projections get more accurate the longer you wait.

    in reply to: Ohtani Dodgers 10 Years/$700M #239524
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    Everybody has an agenda or wants money. Usually it’s both. Valuing character above that is rare, both supplier and consumer. We are a greedy species. Fake news isn’t going anywhere. We need more Bob Nightengales. 😉

    in reply to: Tyler O’Neill Traded to Red Sox #239414
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    I would say on this board the whipping boy has been Marmol. By a large margin.

    The demand for whipping boys goes way up after 71-91. One isn’t nearly enough. Of course, the favorite is in the eye of the beholder. The remedy is a good April.

    in reply to: Tyler O’Neill Traded to Red Sox #239304
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    Is it good that no BoSox names are mentioned? 😉

    Maybe Johnny will ask for TO to leave behind a poster of a post-workout pose. He did seem to be smitten with the guy for a while. TO has all the “-abilities” except which one?

    in reply to: Molina joining coaching staff? Descalso is in! #239188
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    Looking over Marmol’s shoulder, but not every day…

    Brings about an interesting dynamic given the legend of Yadi. Not sure if unintended consequences should be a worry.

    in reply to: Mo discloses the 2024 lineup #239011
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    Did Marmol have input? Likely so, up to the point of philosophical differences.

    Very astute summation. I bet Mo is always accommodative toward Oli’s acquiescence.

    in reply to: Mo discloses the 2024 lineup #238956
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    1TD you very well could be right. I was saying that to be nice.

    Haha, I just hope 1td wasn’t saying the team might deteriorate by only a “bit” to be nice.

    I’m predicting more musical chairs in 2024. Just hope it’s somewhat minimized.

    You can eval this roster one player at a time, in a vacuum, and total it all up to come up with some ideas about how you think they’ll do. That’s the way Mo seems to do it. That means very little for this team though, I am afraid. The intangibles of leadership, win-in-October-know-how, and seasoned, proven baseball men setting the tone is still lacking — on the field, in the dugout, and above. This is what will make 2024 a real challenge.

    in reply to: What’s it gonna take to fix the Cardinals #238854
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    Ahh, I prefer not to email or post messages on my phone, only do it when I’m out of the house. Texting is about it since the eyes aren’t as good as they used to be. But hey bikemike, your posts are always worth a second read, haha.

    in reply to: What’s it gonna take to fix the Cardinals #238851
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    Well that’s just great. Now bikemike sounds like a broken record too. 😉

    in reply to: Cubs Fire David Ross & Hire Craig Counsel #238795
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    McBride, you need to hush! As 1td might say, don’t tempt the gypsies. They can be very evil, lol.

    in reply to: 2024 MLB draft #238723
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    The Lottery is actually held beginning 2:30 PM Central Time, but the results are not released until the telecast at 4:30 Central. So if anybody gets early info from an insider, please post the results ASAP here. 😉

    Also, I haven’t seen the release of the recipients for the Competitive Balance picks. I read in the CBA docs that MLB releases those on Dec 1. Maybe I missed it. Or I guess it’s hard to get stuff done on a Friday or the weekend. Maybe by Monday?

    in reply to: 2024 Rotation #238647
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    Ah yes 1td, Jurgensen was also a very good Sonny. I remember him with George Allen and the Over the Hill Gang — not much before that. Speaking of Allen, he never met a draft pick he wouldn’t trade. He got fined for trading draft picks he didn’t even have, haha! How does than even happen? That’s quite a different view than how things are viewed today on the valuation of prospects and draft picks. Jurgensen also played baseball in college.

    in reply to: 2024 Rotation #238630
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    Please add Cease.

    Sounds too good to be true, but the Cards could make some noise if they do.

    in reply to: 2024 Rotation #238629
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    You guys missed the best “Sonny” name of all time. That is Sonny Sixkiller, the Washington Huskies record setting QB of the early 70s. A TD-throwing QB with “Six” and “killer” in his name — how cool is that? He even wore the number 6 on his jersey. I think all that tops Sonny Bono or Sonny Drysdale or any others I can think of. Sonny Corleone was the killee, not the killer, so he definitely takes a back seat. Sonny Gray has his work cut out for him to top those.

    in reply to: 2024 Rotation #237951
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    I didn’t mention them because short of them selling the franchise today they aren’t going anywhere. So I didn’t address their role in what I describe as a total breakdown mess.

    Hence, the term/name “BillyMo” — just to make it obvious.

    in reply to: Lance Lynn to the Cardinals… #237947
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    Yep, that’s terrible to hear. So sorry.

    in reply to: What’s it gonna take to fix the Cardinals #237935
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    (Knizner) Does a good job behind the plate, and should hit well enough if given regular reps.

    Yep, it was hard for him to gain traction with his situation in StL. I think he’s another guy with a good chance to do better elsewhere.

    in reply to: Congrats Mike Shildt… #237841
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    I hope Shildt has a good run as Pads’ skipper. Whatever else, the man bled Cardinal red and you gotta like that.

    in reply to: 2024 Rotation #237547
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    BillMo’s alligator arms won’t reach up there.

    They never do. Did some need another year of evidence to be convinced? Pay attention to what they do. The talk is just marketing.

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    Diamond Sports (operator of the Bally Sports RSNs) can move forward with plans to relinquish all of its existing contracts by the end of the 2024 Major League Baseball season, pending the resolution of motions by MLB and Sinclair, a bankruptcy judge ruled Wednesday.

    https://www.sportsmediawatch.com/2023/11/bally-sports-ending-deals-approved-court-pending-motions-mlb-sinclair/

    in reply to: What’s it gonna take to fix the Cardinals #237346
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    Anybody remember Matt Carpenter when he played 1stbase?

    Rat, he looked pretty good if you watched him play 1B the day after Jose Martinez played there. Where Carp was really scary was 2B.

Viewing 25 posts - 51 through 75 (of 5,300 total)