Update: O's sign Trumbo to 3yr/$37 mil deal

[weams]

Just now, Frobby said:

What that phrase means is that if the team goes bankrupt, the general creditors have the same claim to those funds as the player does.    But it can't be pledged as collateral to any particular creditor.

Thank you.

[Frobby]

It's a requirement of deferred compensation.    If the assets were pledged to the player and thus not available to claims of general creditors in a bankruptcy, the tax laws would require the player to pay taxes on it as soon as it was pledged, even though the player had not received the money yet.    So this way, the player doesn't pay taxes until the money is in his pocket, but the team can't use the assets for other purposes so the player has some assurance that the money will be there (unless the team goes under, which isn't likely).

[TradeAngelos]

42 minutes ago, weams said:

You do not have a copy of the CBA. You don't.

I don't. 

Only the internet does. LOL

[TradeAngelos]

41 minutes ago, Frobby said:

You clearly have a different interpretation of "unencumbered assets" than I do, reading that.  It's cash, cash equivalents (which usually means money market funds), or marketable securities.   And "unencumbered" means they aren't pledged as security to the club's creditors.    It all comes down to money/liquid assets that the team otherwise could spend or pledge as collateral for other purposes, but has to be set aside to fund the liability to the player.    So I stand by my point.   

So the Orioles have to write a check for the full amount of all deferred money within 12 months? In cash? Of course they don't. Which is why they defer the money for decades, and not for a year. Again, what exactly be the point of deferring assets for 20 years that have to be funded in 1? Seems like an awful lot of to do for a payday loan.

[TradeAngelos]

I meant deferring liabilities/payroll not assets obv,.

[WEAVERMAN]

On 12/5/2016 at 9:26 AM, Dark Helmet said:

I didn't see this posted anywhere.

 

http://www.mlbtraderumors.com/2016/12/dan-duquette-on-trumbo-machado-britton.html?fv-home=true&post-id=79103

The years and money involved are very good.  Well done Duquette.

[weams]

18 minutes ago, TradeAngelos said:

I don't. 

Only the internet does. LOL

No. They don't. It's an old one.

[Ruzious]

It's certainly a better price than they paid for Davis, but again... Duquette's throwing away a chance for a free draft pick.  It's almost like he wants to set up the organization for failure when he leaves.  

[Frobby]

1 hour ago, TradeAngelos said:

So the Orioles have to write a check for the full amount of all deferred money within 12 months? In cash? Of course they don't. Which is why they defer the money for decades, and not for a year. Again, what exactly be the point of deferring assets for 20 years that have to be funded in 1? Seems like an awful lot of to do for a payday loan.

They don't need to pay the full amount, I already said that.   They apply a discount rate that's agreed in the CBA.    The longer the deferral period, the more the discount is, because it's assumed that the escrowed funds will earn a return that will be adequate to pay the full amount when it comes due.    But my point is the same -- it's not like the team gets to party for 10 years and then some giant bill comes due.    They've got to pony up a season and a half after the season is played, at an amount that hopefully should fund the obligation.    If the return on the escrowed funds turns out to be lower than contemplated by the CBA, then the team has to make up the difference, and if it exceeds the amount due, the team gets to keep the excess.

 

[weams]

Rock Kubatko with the goods. 

 

http://www.masnsports.com/school-of-roch/2017/01/trumbo-on-free-agency-and-his-return-to-the-orioles.html

 

On whether it was difficult, being a private person, to have everything play out publicly:
“Yeah, a little bit. I think one of the hardest things is you go through the arbitration process, we were talking about this earlier, and the outline of that process is really to define your value and your weaknesses are going to come to the surface quite quickly. Free agency, you think that maybe that’s a little bit behind you, but it turns into an almost more amplified process of that in a lot of ways, trying to determine just how low your value really might be. But that’s where the business side of it comes in.

“Nobody’s looking to overpay anybody and you’ve got to be semi-realistic when you’re trying to find a contract that works for you.”

On whether he was close to signing with another team:
“I guess there were a few offers that might have made some sense that was very early on. But there were a few others that came along that were easy to kind of pass on, just because I always held out a lot of hope that there would be an opportunity here down the road which is, fortunately, what ended up happening.”

On the deciding factor:
“Just the experience I had here. If there were competitive offers on the table, even if this one had been a little bit lower, I mean, this was my first choice.”

On why Baltimore is a good fit for him despite being a West Coast guy:
“I just found it overall a very easy place to come to work, an enjoyable place to come to work. Playing in your hometown has some really unique challenges. And that was a great time, too. But from purely a professional side of things, the distractions were very limited here in a good way.

“The fans were exceptional and the ballpark, just in of itself, is just really inspiring to come to work every day. Great group of teammates. I beat that to death, but it really is true. I think the way I was welcomed coming into spring training last year, as a new player, which I was trying to tell Seth Smith recently, is you’re going to love it here. They just know how to make you feel comfortable right away. That in turn allows you to go out and play your best baseball.”

[weams]

 

[Can_of_corn]

I like how he would have accepted a bit less to play here...if any other team had valued him more highly than the Orioles.

[Frobby]

1 hour ago, Can_of_corn said:

I like how he would have accepted a bit less to play here...if any other team had valued him more highly than the Orioles.

Whatever.   Time to close ranks and feel good.  

[weams]

5 minutes ago, Frobby said:

Whatever.   Time to close ranks and feel good.  

 

[Can_of_corn]

18 minutes ago, Frobby said:

Whatever.   Time to close ranks and feel good.  

Whatever.

You fan your way and I'll fan mine.