Question re: AROD, Yanks, Salary Cap and AAV

[stormngt]

I am a little confused.  I know AROD has been suspended and many on here say the Yanks now have 25 more million to spend under the cap because of the suspension.  But this is my question.  The salary cap is based not on what you are paid this year, but the AAV for the length of the contract.  AROD's contract was not voided.  Yes, the Yankees do not have pay AROD this year, but dont' they still owe him like another 100 million?  Wouldn't that 100 million apply toward the cap?

 

Can someone help clarify this for me?

[Stradling]

Wow, that's a great point, which would explain what they were saying on MLB network on Saturday and back up what Fletcher said. So if they owe him $90 million the last four years divide that by five and that should be the cap number.

[gotbeer]

My guess is, it has to do with playing on the team also.  So you had no MLB playing time at the MLB level, or at the minor league level.  So that's why the AAV doesn't count to the CBT.  

 

Another weird thought.  But since he's suspended for the whole year.  Does he still have 10/5 rights?  

[Stradling]

I did the math using his Cots salary plus signing bonus, the Yankees will get $7 million worth of relief. 2014-$28 million ($3 million signing bonus) 2015- $22 million, 2016- $21 million, and 2017 $21 million. Add up the last three divide by four and that should be the cap hit, maybe?

[Stradling]

It could also be worse, since it is usually The AAV of the entire contract which would be $275 million minus $28 million, divide by nine instead of ten and its still $27.4 million.

[stormngt]

My guess is, it has to do with playing on the team also.  So you had no MLB playing time at the MLB level, or at the minor league level.  So that's why the AAV doesn't count to the CBT.  

 

Another weird thought.  But since he's suspended for the whole year.  Does he still have 10/5 rights?  

That doesn't make sense.  Wells doesn't play for the Angels nor their minor league system.  So why does Wells count toward the Angels?

[gotbeer]

That doesn't make sense.  Wells doesn't play for the Angels nor their minor league system.  So why does Wells count toward the Angels?

 

Because Wells is like an STD, and it's a gift that keeps on giving.  

 

But that's a good point.  

 

Looking briefly at the CBA, I think these sections might apply.

 

(2) Rules for Allocation of Salary

(a) General Rule

If a Player remains on a Major League Club’s Active List (as

defined in Article XXI) for an entire championship season, then

all of the Salary attributable to the Contract Year in which that

championship season falls shall be allocated to the Club’s Actual

Club Payroll in that Contract Year.

 

 

(d) Termination of Contract

(i) If a Club terminates a Uniform Player’s Contract that cov-

ers a single championship season, the Club shall include in its

Actual Club Payroll for the Contract Year in which that season

falls any Salary paid to that Player, either under this Agreement

or a Special Covenant to the Contract (subject to any offset called

for by this Agreement or a Special Covenant)

 

 

[Docwaukee]

there is a 311 page pdf of the CBA that can be found here:

 

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDkQFjAB&url=http%3A%2F%2Fmlb.mlb.com%2Fpa%2Fpdf%2Fcba_english.pdf&ei=3ivUUun8GML8oASikoLQDA&usg=AFQjCNHIFaJNQDAQ3fUEqPFwmCZuvyUsjQ&sig2=vsTcwOo54yl4HniLlxozZg&bvm=bv.59026428,d.cGU

 

here are a couple of excerpts:

 

For purposes of calculating credited service, a Player will be
considered to be on a Club’s Active List if:
(a) placed on a disciplinary suspension by a Club, the Senior
Vice President, Standards and On-Field Operations or the Commissioner,
or on the Disabled List;

 

there is a couple of pages talking about determination of 'actual' club payroll. 

 

(d) Termination of Contract
(i) If a Club terminates a Uniform Player’s Contract that covers
a single championship season, the Club shall include in its
Actual Club Payroll for the Contract Year in which that season
falls any Salary paid to that Player, either under this Agreement
or a Special Covenant to the Contract (subject to any offset called
for by this Agreement or a Special Covenant).
(ii) If a Club terminates a multi-year Uniform Player’s Contract
while it remains obligated to pay Salary under either this
Agreement or a Special Covenant to the Contract, Salary shall be
allocated to that Club for each Contract Year during which its
obligation continues. Salary shall be attributed to each such Contract
Year pursuant to this Article XXIII (subject to any offset

called for by this Agreement or a Special Covenant). This attribution
shall apply even if the Club pays the Salary in advance.

 

 

(2) Average Annual Value of Guaranteed Multi-Year Contracts
A Uniform Player’s Contract with a term of more than one (1)
championship season (“Multi-Year Contract”) shall be deemed to
have a Salary in each Guaranteed Year equal to the “Average Annual
Value” of the Contract (plus any bonuses subsequently included by
operation of Section E(4) below). “Average Annual Value” shall be
calculated as follows: the sum of (a) the Base Salary in each Guaranteed
Year plus ( any portion of a Signing Bonus (or any other
payment that this Article deems to be a Signing Bonus) attributed to
a Guaranteed Year in accordance with Section E(3) below plus ©
any deferred compensation or annuity compensation costs attributed
to a Guaranteed Year in accordance with Section E(6) below shall
be divided by the number of Guaranteed Years.

 

 

so from what I can gather, if a player is suspended, the salary not being paid for that year comes off the entirety of the contract and the aav is adjusted.  It's doesn't come off the single season only.