Bowden: Manny's agent proposed a long-term deal to the O's before the season started

[weams]

He received $4.9M in exchange for 10% of future earnings. If he earns more than $49M the investors profit.

One of the ideas behind these types of hedges is to remove pressure to sign under market extensions.

[Frobby]

One of the ideas behind these types of hedges is to remove pressure to sign under market extensions.

Right. Schoop could have a career-ending injury tomorrow and he'd still have $4.9 mm banked, if his deal with the investors has closed. When this was publicized, Schoop had entered into a contract to do this but it was contingent upon the other party being able to obtain the financing, which may or may not have happened since then.

[bluedog]

So, unless the proposal was just completely insane, why didn't they sign on the dotted line?

For a deal of (presumably) historical size, the team has to do financial analysis and determine whether or not they can afford it. If you remember the Rangers signed ARod to a deal that was unheard of and then traded him just a couple of years later. I know some folks that were with the Rangers front office at that time and they believe the deal ended up being so financially burdensome on the organization that they had no choice but to move him to the Yanks. The Rangers didn't do enough homework before they pulled the trigger and it cost them.

Angelos is a shrewd financial operator. I'm sure he's got his people running the numbers not just on Manny, but on extending Schoop and Tillman as well so that the O's can try to build a dynasty around Machado, Schoop, Davis, Tillman, Bundy, Harvey, etc. You don't spend the kind of money it will take to retain Machado unless you have a sound financial plan to put a championship caliber team around him.

I was really pleased by Manny's comment that he's not concerned about the O's delay in responding. That shows that he understands that this kind of financial decision can't be rushed.

But the O's need to make sure they don't slow play the response too long. Manny is showing extraordinary respect to the organization by giving them first opportunity to get a deal done. Lot's of players wouldn't do that. Classy.

[El Gordo]

What team with money will need a SS/3B in 2019? MFY comes to mind.

[Tx Oriole]

It's a good sign that Manny is interested in staying an Oriole long term. Now don't screw up and jerk the kid around. Sign Manny!

It depends on what he is asking for. And what will Angelos agree too?

[webbrick2010]

Baseball salaries are on an unsustainable trajectory, just like the US debt is on an unsustainable trajectory

at some point someone is going to be holding the bag and there will be many bankruptcies

If I was a sports team owner I'd be very careful of 8-10 year contracts that ignore the bubble forming in major US sports

[Can_of_corn]

Baseball salaries are on an unsustainable trajectory, just like the US debt is on an unsustainable trajectory

at some point someone is going to be holding the bag and there will be many bankruptcies

If I was a sports team owner I'd be very careful of 8-10 year contracts that ignore the bubble forming in major US sports

I think there will be a painful correction where TV deals are concerned.

Did you happen to see where MLB sold off a portion of MLBAM to Disney?

MLB is a lot better equipped to deal with the correction than the other sports.

[osfan83]

Baseball salaries are on an unsustainable trajectory, just like the US debt is on an unsustainable trajectory

at some point someone is going to be holding the bag and there will be many bankruptcies

If I was a sports team owner I'd be very careful of 8-10 year contracts that ignore the bubble forming in major US sports

Could be true....but timing is everything. Maybe it's 10 years, maybe 5 or maybe 50.

[Tony-OH]

Manny is the most important player to this organization. If they can sign him to a 10-year contract, he will go down in history as the greatest Orioles ever. He's that good and that much of sure thing. I don't think the Orioles can afford to NOT sign him because of the backlash that would come from not signing the guy you drafted and developed from scratch. From Manny's perspective, he has a chance to lay down a legacy here. Sure, he can chase the ulmighty top dollar, and that probably won't be from the O's, but he can be very, very wealthy man for the rest of life, plus leave a legacy behind. That sure is a nice thing to be able to say IMHO.

[Hallas]

Baseball salaries are on an unsustainable trajectory, just like the US debt is on an unsustainable trajectory

at some point someone is going to be holding the bag and there will be many bankruptcies

If I was a sports team owner I'd be very careful of 8-10 year contracts that ignore the bubble forming in major US sports

Are they?

Owners are making money hand over fist right now. They can afford it.

I don't think the media deals are going to be crippling. People are still watching TV for sports. And baseball is making obscene money from MLBAM.

[Hallas]

I suspect that Manny's agent offered something like 12/450 and the O's probably left with their jaws hanging out of their mouths.

[Tony-OH]

I think there will be a painful correction where TV deals are concerned.

Did you happen to see where MLB sold off a portion of MLBAM to Disney?

MLB is a lot better equipped to deal with the correction than the other sports.

Agreed. Baseball salaries are not going to be going down. I do think ticket prices have reached a level where baseball will need to develop other revenues due to the availability of games on HD, and soon UHD quality in the home and in local watering holes.

When battery life for phones improve to the point that your phone is a viable way to watch games anywhere and MLB gets rid of their ridiculous 70s era blackout policies, I think you will see another revenue stream pour in.

[Bahama O's Fan]

I suspect that Manny's agent offered something like 12/450 and the O's probably left with their jaws hanging out of their mouths.

I'd do it

[crawjo]

The problem is they would have to trade him by next year's deadline to get optimal return. And that would only be in play if we are out of it.

How much worth is a year or less of Manny Machado at whatever his arb 2 cost is? Probably not as much as we'd like to think and there is only a handful of teams that would empty their system for a year of Machado.

I would look to trade him this offseason if you decide that a deal isn't going to happen. I hope a deal does happen, but if you think he's not going to be open to signing to terms that work for the club, you trade him to get a maximal return. But I only do it for 5-6 prospects.

[Frobby]

I would look to trade him this offseason if you decide that a deal isn't going to happen. I hope a deal does happen, but if you think he's not going to be open to signing to terms that work for the club, you trade him to get a maximal return. But I only do it for 5-6 prospects.

I'd want a couple of guys who are already in the majors or major league-ready, and a couple of younger top prospects. I'm not ready to walk away from the 2017 season by trading Manny for a bunch of guys who are more than a year away.