Jan.-Apr. 2019 plan

[weams]

 

[DirtyBird]

10 minutes ago, wildcard said:

After this year Davis will get 68m over the next 4 years plus 42m deferred.  He is not giving that up for 60m.

The same $60 million, same 5% return, is worth $72 million in 4 years

[wildcard]

5 minutes ago, DirtyBird said:

The same $60 million, same 5% return, is worth $72 million in 4 years

And that is more than 68m in 4 years and 42m deferred?

[Tx Oriole]

59 minutes ago, sportsfan8703 said:

Things open up real quick if Schoop, Givens, and Gausman are traded. I think Joseph has value as well. 

I am sorry but I don't think Joseph has much value if at all. 

[Frobby]

20 minutes ago, wildcard said:

After this year Davis will get 68m over the next 4 years plus 42m deferred.  He is not giving that up for 60m.

You’re right about that.    Here’s a good article about the value of the deferrals in Davis’ contract, written shortly after the deal was done.   It calculated the present value of the payments to be $126 mm (or equivalent to $138 mm paid over seven years in equal installments).   https://www.fangraphs.com/blogs/the-value-of-deferred-money-in-the-chris-davis-deal/.   Subtract out the three years of $16 mm @ already paid out and the current lump sum value is probably in the $85-90 mm range.   

[DirtyBird]

6 minutes ago, wildcard said:

And that is more than 68m in 4 years and 42m deferred?

Yes, because that would be $151 million in 2037

[ScGO's]

1 hour ago, wildcard said:

I do not see the O's spending money on one year contracts.

1B - Davis

2B- Schoop

SS- Beckham

3B - Wilkerson, Valera, Peterson

C - Sisco, Joseph, Wynn

LF - Mancini

CF - Mullins

LF - Rickard,  Stewart, Hays

DH - Trumbo

SP - Bundy, Gausman, Cobb, Cashner,  Ramirez

RF - Givens, O'Day,  Castro, Wright, Fry, Scott, Hess

Norfolk Shuttle: Yacabonis, Means, Harvey, Rogers, Carroll, Kline, Luis Gonzalez

Hart traded because he is out of options

Cashner, Trumbo, and O'Day  traded at the July deadline.

I agree with all of this. Save money.  There are plenty of "see what's left in your tank/prove you still got it" players still on the roster to trade if they step up and perform (O'day, Wright, Rickard, Cashner, Cobb, Davis, Trumbo, Beckham, Peterson).  No need to sign more than that. DD will try to maximize as much as he can out of the old building as its demo'd.

[Frobby]

3 minutes ago, DirtyBird said:

Yes, because that would be $151 million in 2037

But he’s not getting all that money in 2037.    He’s getting large chunks of it over the next four years and then smaller chunks thereafter.    

[DirtyBird]

14 minutes ago, Frobby said:

But he’s not getting all that money in 2037.    He’s getting large chunks of it over the next four years and then smaller chunks thereafter.    

True. I calculated the present value of the balance of his contract at the beginning of 2019 to be about $75 million.

So, up the buyout to $80 cash

[Frobby]

27 minutes ago, DirtyBird said:

True. I calculated the present value of the balance of his contract at the beginning of 2019 to be about $75 million.

So, up the buyout to $80 cash

What’s the advantage of buying him out, as opposed to making the payments when they’re due?    And what makes you think the O’s have $80 mm lying around?     There’s a reason they deferred the payments in the first place.   

[Satyr3206]

1 hour ago, DirtyBird said:

Chris Davis will have $110 million left on his contract. Do you think he would take a $60 million lump sum that we could pay with our payroll savings?

I'd offer it but Boras would shoot that down quick.