A Realistic View at 2020: Part II

[Bellhorn04]

Seems "fair" that if you signed the s***** contract in the first place, that it would most likely go against your lux tax.

 

Agreed.

[Bellhorn04]

Not before September.

 

And only if the Sox are out of it and his salary won't push them over the CBT...

 

The Twelfth of Never, in other words.

[Slasher9]

I read today he's a free agent after this year, so that's out the window.

 

link?

i'm pretty sure the Sox have control of him until 2023

[Slasher9]

link?

i'm pretty sure the Sox have control of him until 2023

 

actually BR has him as arb eligible in 2023 and FA in 2026....

[Bellhorn04]

link?

i'm pretty sure the Sox have control of him until 2023

 

https://www.bostonherald.com/2020/02/19/rusney-castillo-32-locked-in-as-he-nears-the-end-of-red-sox-tenure/

[a700hitter]

[h=2]Rockies Sign Daniel Bard[/h]By Steve Adams | February 21, 2020 at 11:29am CDT

Daniel Bard’s latest comeback attempt is officially underway. The former Red Sox reliever has agreed to a minor league deal with the Rockies and will had to Major League camp, per Patrick Saunders of the Denver Post (Twitter link). The Boston Globe’s Pete Abraham reported last week that Bard was working toward a comeback.

Good luck to him.

[moonslav59]

San Diego is sort of 'on the hook' with the tax number - but that's the only way they can unload half of Myers's contract. So they get a benefit from it as well.

 

The Red Sox get a break on the tax number, but only by taking on half of Myers's contract.

 

So I think it's a fair trade-off.

 

Again, I'm not doubting your point. I'm just saying it doesn't seem right. I'm glad for us it works this way.

 

This really gives incentive for teams to front load contracts they may want to get rid of as the player ages. The team getting them gets a big break on taxes.

[mvp 78]

Again, I'm not doubting your point. I'm just saying it doesn't seem right. I'm glad for us it works this way.

 

This really gives incentive for teams to front load contracts they may want to get rid of as the player ages. The team getting them gets a big break on taxes.

 

And the player gets a lot of money up front. That's great for them.

[Bellhorn04]

Again, I'm not doubting your point. I'm just saying it doesn't seem right. I'm glad for us it works this way.

 

This really gives incentive for teams to front load contracts they may want to get rid of as the player ages. The team getting them gets a big break on taxes.

 

But a team that gives that kind of contract is paying extra in the first few years. That's not really that beneficial. You're only looking at the tax part, not the total real cost.

 

It's a zero sum game, for the most part.

[Tedballgame]

At least the Sox starting rotation is better than the Yankees.

[moonslav59]

But a team that gives that kind of contract is paying extra in the first few years. That's not really that beneficial. You're only looking at the tax part, not the total real cost.

 

It's a zero sum game, for the most part.

 

Yes, I get it and I am looking at it that way, too.

 

They paid most of the contract, so they should pay most of the taxes. I just don't think this way is proportional.

 

The contract was $83M. Let's say they pay the Sox $27.7M, which is 2/3 of the total contract. In my opinion, they should pay 2/3 of the remaining tax hit, so at the end of his deal, they pay 2/3 his contract and 2/3 his taxes, since AAV is what is used to calculate the taxes.

 

2/3 of the $13.8 lux tax cost is about $8.6M. We'd be "on the hook" for $5.2M not $3.8M. The difference is not much, but I think it is fairer.

[Bellhorn04]

Yes, I get it and I am looking at it that way, too.

 

They paid most of the contract, so they should pay most of the taxes. I just don't think this way is proportional.

 

The contract was $83M. Let's say they pay the Sox $27.7M, which is 2/3 of the total contract. In my opinion, they should pay 2/3 of the remaining tax hit, so at the end of his deal, they pay 2/3 his contract and 2/3 his taxes, since AAV is what is used to calculate the taxes.

 

2/3 of the $13.8 lux tax cost is about $8.6M. We'd be "on the hook" for $5.2M not $3.8M. The difference is not much, but I think it is fairer.

 

Well, as us accountants often tell our clients, it's a mistake to think tax rules are necessarily fair or logical.

[moonslav59]

Well, as us accountants often tell our clients, it's a mistake to think tax rules are necessarily fair or logical.

 

You got that right.

[notin]

Yes, I get it and I am looking at it that way, too.

 

They paid most of the contract, so they should pay most of the taxes. I just don't think this way is proportional.

 

The contract was $83M. Let's say they pay the Sox $27.7M, which is 2/3 of the total contract. In my opinion, they should pay 2/3 of the remaining tax hit, so at the end of his deal, they pay 2/3 his contract and 2/3 his taxes, since AAV is what is used to calculate the taxes.

 

2/3 of the $13.8 lux tax cost is about $8.6M. We'd be "on the hook" for $5.2M not $3.8M. The difference is not much, but I think it is fairer.

 

 

$27.7 million is not 2/3 of the total contract value of $83 million. It's about 33%. And if the Sox are on the hook for $3.8 million of the $13.8mill AAV, they're reponsible for about 27%. So the difference is nowhere near as great as you think even using your methodology...

[mvp 78]

You got that right.

 

Don't listen to Bell, he's going to try to sell you on IFRS!

 

Booooooooooooooooooooooooooo...

 

You can pry LIFO from my cold dead hands.

[moonslav59]

$27.7 million is not 2/3 of the total contract value of $83 million. It's about 33%. And if the Sox are on the hook for $3.8 million of the $13.8mill AAV, they're reponsible for about 27%. So the difference is nowhere near as great as you think even using your methodology...

 

Ok, I mixed up the 2/3 and 1/3 split, but 33% of $13.8 is not $3.8M. The $3.8M comes from the idea that the $10M SD pays is totally deducted from the $13.8M tax line.

 

33% of $13.8M is 5.6M.

[a700hitter]

Is there any truth to the rumors that the Red Sox are trying to woo Robinson Checo and Vaughn Eshelman out of retirement?

[notin]

Is there any truth to the rumors that the Red Sox are trying to woo Robinson Checo and Vaughn Eshelman out of retirement?

 

Vaughn Eshelman passed away in 2018...

[illinoisredsox]

Vaughn Eshelman passed away in 2018...

 

Last 6 seconds of this apply:

 

[a700hitter]

Vaughn Eshelman passed away in 2018...

RIP, but at least I don't have to worry about him getting signed by the Red Sox.

[notin]

RIP, but at least I don't have to worry about him getting signed by the Red Sox.

 

He’d probably be flattered to be remembered at all

[cp176]

RIP, but at least I don't have to worry about him getting signed by the Red Sox.

 

Wait - not so sure - Rusney Castillo's contract was fairly substantial and it doesn't seem to matter. He appears dead to them as well.

[oldtimer]

Wait - not so sure - Rusney Castillo's contract was fairly substantial and it doesn't seem to matter. He appears dead to them as well.

 

Don't you think burdening the Sox minor league system with a long term contract of $72 million matters? You can argue that Castiillo's plight is an artifact of stupid baseball rules, but I believe wasting resources on players who never get the chance to play in the majors for more than token appearances matters to the team if not the CBT.

[notin]

Don't you think burdening the Sox minor league system with a long term contract of $72 million matters? You can argue that Castiillo's plight is an artifact of stupid baseball rules, but I believe wasting resources on players who never get the chance to play in the majors for more than token appearances matters to the team if not the CBT.

 

Well, the only redeeming facet of the Castillo situation is that he does not count towards the CBT. But he is definitely a waste of resources if he does not make the team this year. And potentially one even if he does.

[cp176]

Don't you think burdening the Sox minor league system with a long term contract of $72 million matters? You can argue that Castiillo's plight is an artifact of stupid baseball rules, but I believe wasting resources on players who never get the chance to play in the majors for more than token appearances matters to the team if not the CBT.

 

in a way i do think that his contract is a burden but more importantly i think that it is morally and ethically wrong for a player to be treated this way regardless of how much he makes. I also happen to think that stowing players away at the AAA level is quite common. Castillo has been screwed. Oh for the record I could care less about the size of the contracts the Red Sox give out. it is play money. i care much more about the players as individuals and what they bring to the game. i tend to not think abut what they are being paid. On this site it tends to make me somewhat unusual and I am very proud of that.

[moonslav59]

Just got back from my best buddies funeral in Maine. Over 265 attended!

 

Wow, spring training games have started.

 

I have some catching up to do.

[jacksonianmarch]

Just got back from my best buddies funeral in Maine. Over 265 attended!

 

Wow, spring training games have started.

 

I have some catching up to do.

 

When you were born you were crying and everyone else was smiling. Live your life so at the end, you're the one who is smiling and everyone else is crying

[Noles_1335]

When you were born you were crying and everyone else was smiling. Live your life so at the end, you're the one who is smiling and everyone else is crying

 

Wow... I did not know a Yankee had it in them. Great message there, did you see this somewhere or was this an original?

[Elktonnick]

in a way i do think that his contract is a burden but more importantly i think that it is morally and ethically wrong for a player to be treated this way regardless of how much he makes. I also happen to think that stowing players away at the AAA level is quite common. Castillo has been screwed. Oh for the record I could care less about the size of the contracts the Red Sox give out. it is play money. i care much more about the players as individuals and what they bring to the game. i tend to not think abut what they are being paid. On this site it tends to make me somewhat unusual and I am very proud of that.

Castillo is being paid more money per year than 90% of the other guys on major League clubs. He is also being paid more than 99% of the adult population of the United States. I just don't see how he is getting "screwed"

[jacksonianmarch]

Wow... I did not know a Yankee had it in them. Great message there, did you see this somewhere or was this an original?

 

Emerson said this.