Question Regarding Trouts 1 Year Deal

[mota_madness]

So he [trout] is set for 1 mil this year, lets say he doesn't sign that 6 year deal, is he in arbitration next year what kind of leverage will the angels have?

 

 

[WallyWorld]

i'm sure there are others that know more about the process than I do, but I would think it has little to no bearing on the Angels' leverage, since in the grand scheme of things he's still waaaaay underpaid in terms of market value.  He won't get market value in arbitration, but he'll get way more than $1 million (assuming his performance doesn't drop off significantly)

[Jeff Fletcher]

In arbitration it's essentially which team can argue it's case more effectively to get its dollar figure.

Just a guesstimate, but if Trout doesn't sign an extension and he and the Angels actually get to the point of exchanging figures next year, it would probably be something like $11M and $13M. An arbitrator would pick one of the other.

That being said, it's very unlikely that will happen.

[ten ocho recon scout]

Jeff, dont know if youre in arizona right now, but did trout show up to the field today with like a fake tan, a feathered boa, and a gold rope chain? Maybe some usher sunglasses?

[gotbeer]

Jeff, you'd know the answer to this.  

 

Can a signing bonus be split?  For instance, can the signing bonus for a 6 year deal be say $28 million.  $10 million up front, and $3 million a year?  

 

And when I say up front, like if Trout signed the contract tomorrow, he would get paid the $10 million tomorrow.  

 

And if that scenario goes through, would the $10 million still count towards the AAV for the contract and not count towards this years CBT?  

 

I think the answer is yes, it would not count towards this years CBT.  Just not sure if you can make a signing bonus structured that way, since I've only seen signing bonus' at once, or during a certain time period, or even past the contract.

 

Might be a way to get around the CBT, and keep the year 3 payroll as a record (think $100k over the previous year 3 contract), but not an earthshattering record that every team would curse the Angels over.  Angels would also be able to spread the big payments an extra year.

[Jeff Fletcher]

The signing bonus on a 2015 contract does not count for 2014, no matter when it's paid.

All signing bonuses go into the total value and divided equally the same as the rest of the contract, regardless of when they are paid.

For the sake of easy math, say you get a 5 year 100M deal, that counts as 20M a year no matter how much of it is paid in bonuses and how much is paid in salary each year.

I assume Trout will get a nice bonus (5-10M) to be paid in '14 for his extension and it won't affect the 14 luxury tax as long as his salary for 14 is unchanged.

Edited February 28, 2014 by Jeff Fletcher

[HaloFan85]

Aren't signing bonuses just converted base salary?  If so, then it would definitely have to be treated the same way for CBT purposes.

[Jeff Fletcher]

Signing bonus on a future contract is not counted. It's like he hasn't earned the money because the contract hasn't started. That's why it's different than a performance bonus.

It will count, but just during the years of the contract

Edited February 28, 2014 by Jeff Fletcher

[Docwaukee]

here is the CBA.

http://mlb.mlb.com/pa/pdf/cba_english.pdf

 

section about the CBT notes that bonuses are averaged over the number of guaranteed years regardless of when they are paid. 

[GregAlso]

Jeff, thanks for repeating the CBT info. I gotta imagine people here trying to correct you or those who repeat the same questions could get really annoying but you answer without any perceived annoyance. Great job!

[Jeff Fletcher]

Jeff, thanks for repeating the CBT info. I gotta imagine people here trying to correct you or those who repeat the same questions could get really annoying but you answer without any perceived annoyance. Great job!

Thanks.

Just remember that I'm always right and we'll be fine.

[mancini79]

Thanks.

Just remember that I'm always right and we'll be fine.

 

Welcome to the club!