A Realistic View at 2020: Part I

[Bellhorn04]

So if Jax is right, then the 23.75 million figure being used by Spotrac is based on the assumption that JD will opt out. The Sox would get stuck with a 1.75 mill AAV adjustment to his actual 2020 salary, but would get a free ride for 2018 and 2019.

[moonslav59]

Here is the article about Chapman. Confusing stuff!

 

https://nypost.com/2019/11/03/the-luxury-tax-implications-of-aroldis-chapmans-yankees-extension/

 

I'm more confused after reading this, but I'm not sure everything written here is correct.

 

I do not think they go back and adjust past budgets and taxes, but I suppose they could aply the difference to the next year or remaining years on a contract.

 

I'm thinking the Chapman extension does not affect the contract and will be treated as a separate contract at $18M after the 5 year deal runs out.

[Bellhorn04]

I'm more confused after reading this, but I'm not sure everything written here is correct.

 

I do not think they go back and adjust past budgets and taxes, but I suppose they could aply the difference to the next year or remaining years on a contract.

 

I'm thinking the Chapman extension does not affect the contract and will be treated as a separate contract at $18M after the 5 year deal runs out.

 

Chapman's situation was also different because he didn't opt out - he signed an extension before the opt out date.

[moonslav59]

Chapman's situation was also different because he didn't opt out - he signed an extension before the opt out date.

 

Yes, but the numbers the Post used seem messed up.

[jacksonianmarch]

Chapman's situation was also different because he didn't opt out - he signed an extension before the opt out date.

 

I read cot's contracts breakdown of Chapman and there is a provision MOVING FORWARD about guys opting out. Here is the excerpt on Chapman

 

for tax purposes, the extension’s average annual value is $17,466,667, which includes a $16M salary, plus $1,466,667 to account for the difference between the $18,666,667 ($56/3) actually paid by the Yankees under the previous contract and the club’s lesser $17.2M AAV charge ($86/5) for 2017-19

 

So there is a correction that is added GOING FORWARD. I don't get this, though, for a guy who opts out and signs elsewhere. Does a massive hit occur in one season? Let's say the Yanks signed Cole for 10 years and $300 mil, but had the first 4 years at $160 mil then an opt out. If Cole opted out and went back to the Astros, what would that mean for the lux tax. On the docket would have been $30 mil AAV for the first four years. Would the Yanks be hit with a $40 mil adjustment in year 5 since he was actually paid $40 mil AAV the first 4 seasons yet counted at $30 mil AAV, so the difference would be added back? I wasn't aware of this

[moonslav59]

I read cot's contracts breakdown of Chapman and there is a provision MOVING FORWARD about guys opting out. Here is the excerpt on Chapman

 

 

 

So there is a correction that is added GOING FORWARD. I don't get this, though, for a guy who opts out and signs elsewhere. Does a massive hit occur in one season? Let's say the Yanks signed Cole for 10 years and $300 mil, but had the first 4 years at $160 mil then an opt out. If Cole opted out and went back to the Astros, what would that mean for the lux tax. On the docket would have been $30 mil AAV for the first four years. Would the Yanks be hit with a $40 mil adjustment in year 5 since he was actually paid $40 mil AAV the first 4 seasons yet counted at $30 mil AAV, so the difference would be added back? I wasn't aware of this

 

I never heard of this, but it makes more sense to charge it the following year than to retroactively charge teams for past budgets. You can't go backwards, since adding some salary to a year in the past could have been enough to put a team over a tax line and change future taxes and penalties.

 

I've never seen a team pay a one year charge after an opt out.

[jacksonianmarch]

Right, but that seems pretty steep to do so. Maybe this is why we don't see those heavily front loaded deals that I have proposed

[Bellhorn04]

Here's what it says in the CBA itself:

 

(d) Player Option Years

(i) If a Player fails to exercise or chooses to nullify a Player

Option Year that is deemed a Guaranteed Year pursuant to Section

E(5)(a)(ii) above, the difference between the amount paid to

the Player under his Contract (including any Option Buyout pay-

ment) and the amount that has been attributed to Actual Club

Payroll of a Club under that Contract shall be added to (or subtracted

from) Actual Club Payroll in the Contract Year in which

the Player Option Year falls.

 

If I'm reading that correctly, the Sox could indeed get stuck with a 5.25 million adjustment for JD if he opts out at the end of 2020.

 

This makes sense, really, because it prevents teams from structuring contracts in a way that gives them tax relief.

[notin]

Here's what it says in the CBA itself:

 

(d) Player Option Years

(i) If a Player fails to exercise or chooses to nullify a Player

Option Year that is deemed a Guaranteed Year pursuant to Section

E(5)(a)(ii) above, the difference between the amount paid to

the Player under his Contract (including any Option Buyout pay-

ment) and the amount that has been attributed to Actual Club

Payroll of a Club under that Contract shall be added to (or subtracted

from) Actual Club Payroll in the Contract Year in which

the Player Option Year falls.

 

If I'm reading that correctly, the Sox could indeed get stuck with a 5.25 million adjustment for JD if he opts out at the end of 2020.

 

This makes sense, really, because it prevents teams from structuring contracts in a way that gives them tax relief.

 

 

But what happens if the Sox sign JD to a whole brand new contract before he has a chance to decline that option (which he will decline)?

[Bellhorn04]

But what happens if the Sox sign JD to a whole brand new contract before he has a chance to decline that option (which he will decline)?

 

Then it would be like the Chapman deal, and the adjustment gets spread out.

[moonslav59]

Here's what it says in the CBA itself:

 

(d) Player Option Years

(i) If a Player fails to exercise or chooses to nullify a Player

Option Year that is deemed a Guaranteed Year pursuant to Section

E(5)(a)(ii) above, the difference between the amount paid to

the Player under his Contract (including any Option Buyout pay-

ment) and the amount that has been attributed to Actual Club

Payroll of a Club under that Contract shall be added to (or subtracted

from) Actual Club Payroll in the Contract Year in which

the Player Option Year falls.

 

If I'm reading that correctly, the Sox could indeed get stuck with a 5.25 million adjustment for JD if he opts out at the end of 2020.

 

This makes sense, really, because it prevents teams from structuring contracts in a way that gives them tax relief.

 

Just because it makes sense doesn't mean it is as it appears. It could have been an unforeseen loop hole.

 

If this is true, all the more reason to reset this year.

[moonslav59]

 

h a p p y

n e w

y e a r

 

 

[jacksonianmarch]

 

h a p p y

n e w

y e a r

 

 

 

Seconded. Hope you all had a fun and safe night

[moonslav59]

It's the year of the optometrist.

 

Everybody sees 2020.

 

[5GoldGlovesOF,75]

2020 derision. Just kidding.

[notin]

It's the year of the optometrist.

 

Everybody sees 2020.

 

 

It's the Year of Amy Robach! Anchoring 20/20 in the year 2020!

[TylerD]

It's the Year of Amy Robach! Anchoring 20/20 in the year 2020!

 

I’ve seen a few of those memes already.

[Station 13]

Is Pedroia ready to declare he is prepared for spring training 2021 yet?

[mvp 78]

Is Pedroia ready to declare he is prepared for spring training 2021 yet?

 

Anger rising...

[moonslav59]

Is Pedroia ready to declare he is prepared for spring training 2021 yet?

He’s preparing to prepare to let us all know he is preparing to get ready to begin setting up a plan to prepare for rehab.

[mvp 78]

He’s preparing to prepare to let us all know he is preparing to get ready to begin setting up a plan to prepare for rehab.

 

"That's just buzzarding." - Bellhorn

[Station 13]

He’s preparing to prepare to let us all know he is preparing to get ready to begin setting up a plan to prepare for rehab.

 

he is totally calculating it while at a resort somewhere in Tahiti.

[moonslav59]

I’m not a Pedey hater. I think he is giving it his all on getting ready for 2020. I just have little confidence he will succeed.

[Bellhorn04]

"That's just buzzarding." - Bellhorn

 

Injuries are an awful thing.

[moonslav59]

Injuries are an awful thing.

 

Yes, especially those from a cheap shot.

[Bellhorn04]

Sox have signed Kevin Plawecki as backup catcher.

[notin]

Sox have signed Kevin Plawecki as backup catcher.

 

 

... thus answering one question this off-season.

 

A good move by Bloom, but certainly not a needle mover.

 

So who gets the DFA?

 

My first thought is Ryan Weber, with Sam Travis as the DFA understudy ...

[OH FOY]

Sox have signed Kevin Plawecki as backup catcher.

 

I cant believe it. We got him.

[a700hitter]

Plawecki is an adequate replacement for Leon. I think he has more upside offensive potential than Leon. Hopefully, next up will be some bullpen additions, and a depth move for the rotation.

Red Sox To Sign Kevin Plawecki

 

January 2nd, 2020 at 11:48am CST • By Connor Byrne

The Red Sox have reached an agreement with free-agent catcher Kevin Plawecki, Robert Murray reports. It’s a major league contract, per Alex Speier of the Boston Globe. Joel Sherman of the New York Post adds that it’s for one year. Plawecki, an ACES client, will earn $900K, Bob Nightengale of USA Today tweets.

The 28-year-old Plawecki seems likely to serve as the backup in Boston to starting catcher Christian Vazquez. However, Plawecki – once a 35th overall pick (2012) and a top 100 prospect of the Mets – hasn’t been especially effective in the majors since he debuted in 2015. Plawecki put up a .218/.308/.330 line in 804 plate appearances with the Mets from 2015-18 before they moved on from him last winter. The club traded Plawecki to the Guardians almost exactly one year ago, on Jan. 6, 2019.

The Plawecki acquisition didn’t work out as hoped for the Guardians, with whom he batted a dismal .222/.287/.342 across 174 PA as Roberto Perez‘s backup. On the other hand, Plawecki was a standout behind the plate, where he ranked near the top of the majors in Baseball Prospectus’ Fielding Runs Above Averagemetric.

[Monster24]

MLB network top ten worst deals of decade

Sox had 3 -Castillo,Sandoval and Crawford