Davis Signs With Baltimore (7/$161M, incl $42M deferred)

[eddie83]

All around player.

I think Heyward is in a perfect place. He already has pieces around him and he can blend in on offense. He reminds me of a basketball player that can do everything well but can't carry a team on offense. I think you described him very well.

[Palmoripken]

Well that makes me feel a little better too.

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[Can_of_corn]

Wow that deferred money is a huge difference

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The same reasoning is why front loaded contracts are rarer than hen's teeth.

[TradeAngelos]

I don't consider the deferrals to have any impact on our ability to spend when they are being paid out (3.5 or 1 per year is nothing). This is essentially a 17 AAV contract. I'm off the ledge, but still would have much preferred this to be a five or even six year deal.

Anyone know what our total payroll is at this point for 2016?

134m or thereabouts.

[TonySoprano]

Eutaw...<iframe width="560" height="315" src="https://www.youtube.com/embed/v1qETpdrdIs" frameborder="0" allowfullscreen></iframe>

[weams]

The same reasoning is why front loaded contracts are rarer than hen's teeth.

There is a formula that the MLB and Players association use to evaluate the average annual value of a contract for luxury tax purposes. It's been collectively bargained to use that one formula. Supposedly, Olney used the official formula.

[George Zuverink]

So if rhe Treasury raises rates?

Makes it cheaper.

[Going Underground]

I'm an actuary and I deal with this kind of analysis every day. All of the commenters are underestimating the financial impact of deferring $42M in payments without crediting interest. Suppose that Angelos put the money in high grade corporate bonds that matured when the deferrals begin. They're yielding 4%. Suppose he could reinvest the money then at the same 4% rate. Because he is not paying Crush interest on the deferrals, he would need to sock away only $26M today. PA's financial advisers would probably tell him he could expect better than 4%, but let's be pessimistic and say 4% throughout. Add that to the $119M for the seven years of the contract and you have a $145M deal.

He could get AAA Maryland bonds paying around 4%.No state,local or federal tax.The problem is they usually go out 20 years or so and could get called.

[25 Nuggets]

With so much money deferred, I change my tune. The Orioles FO was in charge the whole time and Angelos only gave it his stamp of approval.

Someone said early on the thread that Scott Boras is all about getting the big number on the headline. That is the case here. I think Davis wanted to stay, the O's wanted him, and this is how they made it past Boras.

There you go; now we can move on to figuring out the best way to round out the roster to compete for the pennant.

Speaking of which, I like the idea of trading for Alex Wood.

[NATTYBO's]

<blockquote class="twitter-tweet" lang="en"><p lang="en" dir="ltr">Chris Davis contract structure: $17m annual salary 2016-2022. Annual payments $3.5m 2022-31, then $1.4m 2032-36. No interest on deferrals.</p>? Buster Olney (@Buster_ESPN) <a href="https://twitter.com/Buster_ESPN/status/688460234487128064">January 16, 2016</a></blockquote>

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Wonder if Boras increased deferrals to show more perceived value

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[Stotle]

How do we know how valuable he'll be defensively if they end up playing him in center?

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I think ultimately Baez ends up in center -- maybe Almora by 2017 if he isn't traded.

[Going Underground]

Wonder if Boras increased deferrals to show more perceived value

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I wonder what the original offer with deferred money was? 15 million or maybe 16 million

[weams]

I wonder what the original offer with deferred money.Will was? 15 million or maybe 16 million

I doubt Boras allows that to leak out.

[scOtt]

Does PGA now think the MASN situation is shored up? That is the only reason I can see us having enough to spend this much on Davis and still make any other moves that aren't 1-3 million types.

Unless PGA is feeling his mortality and wants to go for it.

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I think that's a big part of it. I also think he heard a lot of grumbling last year when we went to the ALCS and then didn't do anything last offseason. Fans were mad and I think Peter realized he had to step up.

[Roll Tide]

I think that's a big part of it. I also think he heard a lot of grumbling last year when we went to the ALCS and then didn't do anything last offseason. Fans were mad and I think Peter realized he had to step up.

But so far the team is slightly improved on offense and pitching is much worse with the loss of Chen.