Players opting out of 2020 season

[Frobby]

49 minutes ago, foxfield said:

 I have tried to verify this, but I think I am stating this part correctly.

Contracts cover time.  Not playing does not change that time.  However, in the case of Chris Davis...  a sizable portion of his contract is deferred and therefore will be paid anyway.  In other words, Orioles off the hook for major portion of Chris Davis' salary for 2020, however they still owe the entire portion of deferred money.

 

 

I’m not sure, but I think you are wrong.   The money he gets after 2022 is deferred compensation for the years that he played.         If he sat out the year, he would lose $23 mm, not $17 mm.    

[scOtt]

19 minutes ago, Frobby said:

I’m not sure, but I think you are wrong.   The money he gets after 2022 is deferred compensation for the years that he played.         If he sat out the year, he would lose $23 mm, not $17 mm.    

I very much respect your legal opinion and intuition, but I guess it really boils down to exact contract language? Which none of us will ever see!

[Roll Tide]

1 hour ago, scOtt said:

They better not!!! 'Sbeen 6 f-ing weeks now and I still haven't seen a GD dime! From the Feds or PA. Meanwhile I have $12 in the bank... they have millions.

Unfortunate sir sorry to hear....I have a friend in MD who didn’t get anything for 8 weeks. All of the sudden she got $8000 all at one time.

[Roll Tide]

1 hour ago, Frobby said:

I’m not sure, but I think you are wrong.   The money he gets after 2022 is deferred compensation for the years that he played.         If he sat out the year, he would lose $23 mm, not $17 mm.    

Don’t worry he won’t! The Orioles aren’t that lucky.

[scOtt]

20 minutes ago, Roll Tide said:

Unfortunate sir sorry to hear....I have a friend in MD who didn’t get anything for 8 weeks. All of the sudden she got $8000 all at one time.

My mom waited, then got over $4000 pretty fast. So I haven't lost hope. Just patience...

[WillyM]

Deleting post.

Edited June 30, 2020 by WillyM
Posted in wrong thread

[hoosiers]

5 hours ago, SteveA said:

Chris Davis Contract:

2016 $17 million

2017 $17 million

2018 $17 million

2019 $17 million

2020 $17 million (now will be prorated to 60/162 of $17 million)

2021 $17 million

2022 $17 million

-- end of the playing portion of this contract)

There is then $42 million to be paid deferred between 2023 and 2037 (15 years).   I don't know if that means exactly $2.8 million in each of those 15 years or if it is set up in different amounts in different years..

 

Many of those who argued the Orioles should have released Chris Davis last year because it was a sunk cost and the Os would be responsible for paying out the entire contract were .... wrong.  About $10M wrong!

[foxfield]

5 hours ago, Frobby said:

I’m not sure, but I think you are wrong.   The money he gets after 2022 is deferred compensation for the years that he played.         If he sat out the year, he would lose $23 mm, not $17 mm.    

I agree if he sat out, but I was referring to this year. The Os save money based on fewer games as they do with all players based on the pro data agreement. But I believe the deferred money is paid in full. THAT is the part I am still looking To verify. Thanks for adding insight. 

[Legend_Of_Joey]

Add Ian Desmond to the list.

[Frobby]

7 hours ago, foxfield said:

I agree if he sat out, but I was referring to this year. The Os save money based on fewer games as they do with all players based on the pro data agreement. But I believe the deferred money is paid in full. THAT is the part I am still looking To verify. Thanks for adding insight. 

I thought we were discussing what would happen if Davis chose to sit out this season for COVID reasons.   But even if he doesn’t, I believe he will lose the proportional amount (102/162) of his deferred $6 mm that relates to this season.   It is compensation for services that were to be performed this season, even though it was deferred, and therefore he loses the proportionate amount.   

[tntoriole]

13 hours ago, SteveA said:

Chris Davis Contract:

2016 $17 million

2017 $17 million

2018 $17 million

2019 $17 million

2020 $17 million (now will be prorated to 60/162 of $17 million)

2021 $17 million

2022 $17 million

-- end of the playing portion of this contract)

There is then $42 million to be paid deferred between 2023 and 2037 (15 years).   I don't know if that means exactly $2.8 million in each of those 15 years or if it is set up in different amounts in different years..

 

If I change jobs, I want CDs agent in the room for me. 

[DrungoHazewood]

16 hours ago, Can_of_corn said:

I hope none of them get grief for their decision.

It's the human race with access to the Internet.  The reaction will be a normal distribution of comments centered on "don't care" but stretching from death threats to deification.

[Frobby]

10 hours ago, hoosiers said:

Many of those who argued the Orioles should have released Chris Davis last year because it was a sunk cost and the Os would be responsible for paying out the entire contract were .... wrong.  About $10M wrong!

I’m not sure how that would have worked.   When a player is released, the team still doesn’t have to pay him until the money would have fallen due if he hadn’t been released.    So I’m not sure Davis would have gotten his full salary for 2020 if he’d been released.     

[Frobby]

So, Max Scherzer is a player whose contract structure is very interesting viz. this year’s short season.    His 7 year, $210 mm contract looked like this:

- $50 mm “signing bonus,” but paid out $5 mm in 2015 and $15 mm in each of 2019-21.     As I see it, none of the $15 mm due this year will be prorated because it’s a signing bonus, not a salary.    

- Salaries were $10 mm in 2015, $15 mm in 2016-18, $35 mm in 2019-21.  The entire 2019-21 salaries are deferred to 2022-28.    So, when he gets his deferred comp for 2020, he’ll only receive 60/162 x $35 mm = $12.96 mm.    Roughly a $22 mm haircut.

Now compare all this to how Scherzer would have done if he’d just taken a $30 mm/yr salary (whether or not some of it was deferred).     In that case his salary this year would be $11.1 mm, roughly a $19 mm haircut.   

In other words, the way this deal was structured ends up costing Scherzer an extra $3 mm in lost salary compared to what would have happened if he’d just had a straightforward annual salary in equal amounts each year.    

Win some, lose some.   


 

[BohKnowsBmore]

2 hours ago, DrungoHazewood said:

It's the human race with access to the Internet.  The reaction will be a normal distribution of comments centered on "don't care" but stretching from death threats to deification.

This is one of the most succinct descriptions of internet (and comment) behavior I've seen. I like it.