Angels don’t have to wait until Opening Day with Trout

[ettin]

Alden Gonzalez saying the Angels don't have to wait until Opening Day to announce a Trout extension: http://aldengonzalez.mlblogs.com/2014/02/24/angels-dont-have-to-wait-until-opening-day-with-trout/

[tdawg87]

Sweet. But wouldn't a signing bonus count towards this year's payroll?

[gotbeer]

Get er done.

[mtangelsfan]

If the extension is six years and is signed before this year starts, does it then include this year?

[gotbeer]

Sweet. But wouldn't a signing bonus count towards this year's payroll?

 

I think for CBT purposes, it's added to the contract length.  So a $10 million signing bonus with a 5/$100 for CBT Purposes is $22 million a year CBT hit.  

 

As for payroll purposes, it'll depend on how the signing bonus is paid out.  Some are paid out over the life of the contract, some up front.  Just will depend on how it's structures.   My guess would be it's paid up front since he'll be around the league minimum 

 amount for this season.

[gotbeer]

If the extension is six years and is signed before this year starts, does it then include this year?

 

And no, it'll start in 2015.  So a 6 year would be 3 arbitration years and 3 FA'cy years.

[Angel Oracle]

Adding the $10 million bonus to 2014 still would have them some $5 million below the luxury tax threshold. 

[gotbeer]

Adding the $10 million bonus to 2014 still would have them some $5 million below the luxury tax threshold. 

 

Not how the CBT is computed.  

[AngelsLakersFan]

This doesn't seem to be the case. The CBT is calculated at the end of the year based on how much money was actually allocated towards payroll obligations. 

 

I would think the only way an extension could not be counted against this year is if it begins in the 2015 season. Theoretically they could pay him $500,000 this year, have the extension kick in next season and pay him a singing bonus RIGHT NOW, that will then count against the CBT throughout the life of the contract, which would begin a year later.

[Hubs]

The CBT takes only AAV into account. They divide signing bonuses up equally for the length of the contract, despite how they are actually paid out.

 

The CBT also accounts for payroll beyond the top 25 players, the 15 players not on the 25, but on the 40 man get counted for a specific salary depending on their experience, and also they use some of the $189 million for pension and benefits.

[Hubs]

They can announce, but not officially file the paperwork until after opening day. They will renew his contract prior for $500k, or 1 M or whatever.

[KevinStockerIsGod]

Sounds like as long as the Angels "set" the salary for Trout before an extension is agreed to, then the contract wouldn't start til the following year or being against the CBT.

[Chuck]

So again, at worst we'll enjoy 9 years of Mike Trout in totality should he decide to leave us as a FA at the conclusion of the 6 year deal.

[Angels_Make_Me_Drink]

I think we should go ahead and throw another 2 years and $50 million on the deal and see if he bites.

[gotbeer]

So again, at worst we'll enjoy 9 years of Mike Trout in totality should he decide to leave us as a FA at the conclusion of the 6 year deal.

 

Yup.  And if you look at most superstars not under the influence of PED's, the peak of a superstar player is about 6-10 years.  Does it mean they will be ineffective outside of those years.  No.  But you will start to see a decline in those numbers.  

 

So having Trout for 9 of those years isn't a bad thing at all.  

[fan_since79]

So again, at worst we'll enjoy 9 years of Mike Trout in totality should he decide to leave us as a FA at the conclusion of the 6 year deal.

 

I'll take it!

[Docwaukee]

signing bonuses are attributed pro rata over the number of guaranteed years of a contract.  It makes no mention of when and how they are paid out.  If the agreed extension is to start in 2015 then they will just wait to sign it until after opening day.  It does not appear that the signing bonus would count for this year's CBT number even if it's paid out this year.  It's still pro rated over the number of guaranteed years.  

[summit21]

signing bonuses are attributed pro rata over the number of guaranteed years of a contract.  It makes no mention of when and how they are paid out.  If the agreed extension is to start in 2015 then they will just wait to sign it until after opening day.  It does not appear that the signing bonus would count for this year's CBT number even if it's paid out this year.  It's still pro rated over the number of guaranteed years.  

The article just stated they don't have to wait until opening day to sign it, if the extension begins in 2015.

[Jim]

The article just stated they don't have to wait until opening day to sign it, if the extension begins in 2015.

"As soon as Trout’s compensation for 2014 is set, his AAV on a long-term deal automatically won’t count until the following season."

 

True, but they can't announce anything until after the 2014 compensation has been determined and properly filed. Which could happen before the start of the season. This is how I'm reading it anyways.  

[gotbeer]

"As soon as Trout’s compensation for 2014 is set, his AAV on a long-term deal automatically won’t count until the following season."

 

True, but they can't announce anything until after the 2014 compensation has been determined and properly filed. Which could happen before the start of the season. This is how I'm reading it anyways.  

 

The compensation for 2014 should be announced soon.  Looking at the transaction calendar.  I think it's between March 2-11.  So hoping it happens on March 2, and the new contract is announced later that evening.  

[Jim]

That would definitely be the best case scenario.