So I e-mailed Jeff at Cot's Contracts about the AAV thing. He nicely replied a few hours later.
Here's the exchange:
My Q:
Hi Jeff
Some sources indicate that Mookie's AAV is 25.55 million because deferred money reduces the present value of his contract to 306.5 million. But Cot's shows it as the unadjusted 30.42 million. Can you clarify?
His A:
Hi,
I've done some digging on this because it came up when the Betts extension was announced. Here's what I've gleaned from sources around the game on Betts' AAV.
For purposes of calculating the Competitive Balance Tax, the deferred salary is included at its stated value because the interest rate on the deferred money (0%) is within one and one-half percentage points of the imputed loan interest rate (.43%). The relevant rule in the labor deal is Article XXIII E. (6)((ii) page 123 of the CBA. So that makes Mookie's AAV for tax purposes a straight 365/12.
But for purposes of calculating annual salaries, his salaries are discounted to reflect the present-day value. The Players Association calculates the deal's total present-day value at $306,657,882. I think the $25.55 million figure floating around is simply the present-day value divided by 12.
His 2021 salary would usually be $17.5 million, plus $5,416,667 to account for a 1/12th share of his $65 million signing bonus, for a $22,916,667 total. But, factoring in the deferred money, that figure is discounted to $18,658,692. So that's the 2021 figure you see listed in some comprehensive 2021 MLB salary listings.
Hope that helps!
jeff