Calling All Budgies - the Red Sox 2020 payroll thread

[Bellhorn04]

So Cot's has us at 16.4 million below the cap.

 

However, there is one little issue - the JDM opt-out.

 

I'm 99.99% sure that if JD opts out at the end of this year, we will get hit with an adjustment of 5.25 million, representing the difference between what he was actually paid by us over 3 years -23.75 * 3 = 71.25, and the original AAV of 22 * 3 = 66.

[notin]

So Cot's has us at 16.4 million below the cap.

 

However, there is one little issue - the JDM opt-out.

 

I'm 99.99% sure that if JD opts out at the end of this year, we will get hit with an adjustment of 5.25 million, representing the difference between what he was actually paid by us over 3 years -23.75 * 3 = 71.25, and the original AAV of 22 * 3 = 66.

 

A negative adjustment?

[Bellhorn04]

A negative adjustment?

 

A bad adjustment for us.

[notin]

A bad adjustment for us.

 

Why? If they already paid above the AAV, they get penalized for it?

 

If they paid below the AAV, would they get credited?

 

And who is the psychotic accountant at MLB who drew that up?

[Bellhorn04]

Why? If they already paid above the AAV, they get penalized for it?

 

If they paid below the AAV, would they get credited?

 

And who is the psychotic accountant at MLB who drew that up?

 

It's pretty simple and makes perfect sense, actually.

 

We were benefitting from an AAV that was lower than JD's actual salary in 2018 and 2019.

 

If he opts out we get stuck with an adjustment in the year he opts out.

 

The only 'penalty' is in the luxury tax calculations, which of course are totally separate from the actual payroll.

[notin]

It's pretty simple and makes perfect sense, actually.

 

We were benefitting from an AAV that was lower than JD's actual salary in 2018 and 2019.

 

If he opts out we get stuck with an adjustment in the year he opts out.

 

The only 'penalty' is in the luxury tax calculations, which of course are totally separate from the actual payroll.

 

So teams get penalized for front loading contracts?

 

What about the Padres, who received an actual benefit by only paying Wil Myers $5mill per year for the past 3 years on a $13.8mill AAV?

[Bellhorn04]

So teams get penalized for front loading contracts?

 

What about the Padres, who received an actual benefit by only paying Wil Myers $5mill per year for the past 3 years on a $13.8mill AAV?

 

These aren't penalties we're talking about. They're adjustments.

[moonslav59]

So teams get penalized for front loading contracts?

 

What about the Padres, who received an actual benefit by only paying Wil Myers $5mill per year for the past 3 years on a $13.8mill AAV?

 

It would be more of a benefit to a team facing a tax.

[Slasher9]

So Cot's has us at 16.4 million below the cap.

 

However, there is one little issue - the JDM opt-out.

 

I'm 99.99% sure that if JD opts out at the end of this year, we will get hit with an adjustment of 5.25 million, representing the difference between what he was actually paid by us over 3 years -23.75 * 3 = 71.25, and the original AAV of 22 * 3 = 66.

 

i bet he doesnt opt out. but if he does, i can see why Bloom is staying well below the $208 "just in case"....

[mvp 78]

i bet he doesnt opt out. but if he does, i can see why Bloom is staying well below the $208 "just in case"....

 

There's no chance of him getting the same AAV if he opts out. The older he gets, the less he'll earn in FA.

[Bellhorn04]

There's no chance of him getting the same AAV if he opts out. The older he gets, the less he'll earn in FA.

 

Yeah 2 years for 38.75 million really isn't bad for a DH.

[mvp 78]

His contract isn't an issue for me. I just don't know if other teams would be willing to pay more on an open market.

[jad]

On Rusney: This has probably been answered before. My understanding is that if he gets put on hte 40-man roster (here or elsewhere, if they release him), RS will be stuck for luxury tax purposes with his average annual salary, correct? But only for the year (or years) in which he is on the roster?

 

(I imagine this means that we won't see Castillo unless the RS are $12 million under hte luxury tax cap after the trading deadline.

[Bellhorn04]

On Rusney: This has probably been answered before. My understanding is that if he gets put on hte 40-man roster (here or elsewhere, if they release him), RS will be stuck for luxury tax purposes with his average annual salary, correct? But only for the year (or years) in which he is on the roster?

 

(I imagine this means that we won't see Castillo unless the RS are $12 million under hte luxury tax cap after the trading deadline.

 

All correct.

[mvp 78]

All correct.

 

Is it the full AAV or adjusted for a partial year if he's called up during the season?

[Bellhorn04]

Is it the full AAV or adjusted for a partial year if he's called up during the season?

 

Good question. I suspect we'd get whacked with the full AAV, but I don't know for sure.

[jad]

Good question. I suspect we'd get whacked with the full AAV, but I don't know for sure.

 

That one I know (well, pretty sure). If a guy is on the 40-man roster at any point in the year, the team owes tax on the full annual average. (That's why they couldn't bring Rusney up for a brief look.)

 

(Hmm. I should revise that. I don't in fact know that. I'm just thinking of the nightmarish calculations by teams and the league that would result if it weren't this simple, and assuming those who drafted the CBA thought of those as well.)

Edited March 6, 2020 by jad

[mvp 78]

That one I know (well, pretty sure). If a guy is on the 40-man roster at any point in the year, the team owes tax on the full annual average. (That's why they couldn't bring Rusney up for a brief look.)

 

(Hmm. I should revise that. I don't in fact know that. I'm just thinking of the nightmarish calculations by teams and the league that would result if it weren't this simple, and assuming those who drafted the CBA thought of those as well.)

 

They make partial year calculations when you trade for a player though?

[notin]

They make partial year calculations when you trade for a player though?

 

And the team that traded him is accountable for the other part, which might be why it’s different with Castillo....

[Slasher9]

the full year aav is added to the payroll for tax purposes the second Rusney is added to the 40 man.

[mvp 78]

the full year aav is added to the payroll for tax purposes the second Rusney is added to the 40 man.

 

Goodnight sweet prince.