Savant or Idiot?
The Associated Press, via ESPN, is reporting that Manny Ramirez is not going to collect all of recent 2-year deal with the Dodgers until 2013. Per ESPN/AP:
Ramirez gets a $25 million salary this year, but just $10 million is paid up front. The rest is due in $5 million installments each June 30 in 2010, 2011 and 2012.
His contract calls for a $20 million salary in 2010, with $5 million payable up front. He is due two installments of $3,333,333 by June 30 in 2011 and 2012, and a final payment of $8,333,333 by June 30 in 2013.
Because of the money deferred without interest, Ramirez's 2009 salary is given a present-day value of about $18.4 million by Major League Baseball.
Ok, the economy hasn't been kind to many (not Manny, but many). Even ultra-short ETFs can kick you in the butt, but Manny's decision to hack his way out of Boston has proven financially costly. Maybe in a better climate he'd have scored more cabbage, but alas, he didn't.
Not to dwell on Manny, but he hired many people to make his bed and now he has to sleep in it.
Anyway, real baseball, just 28 days away. 28 days? Aren't some wars fought in less time? The 27-day war as an example! See, I studied...something...at some...point.
Comments
The answer is idiot, but not necessarily because of the deal. Obviously, he didn't get the deal he wanted, but you have to assume that he will decline the 2010 option and try again after this season. I shudder as I write this, but depending on how they fare this season I could see the Yankees making a play for him and if the economy is better he could get a ton of offers (assuming he hits this season)
Posted by: Peter
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March 9, 2009 11:11 PM
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I think there are a few things that need to be considered with Manny's deal.
If I recall correctly, the Sox had annual club options at $20MM/annum - so they could have dumped him at the end of any year, no? Do I have that right? If so, then they controlled him, he was a passive element. With this new deal, Manny gets $25MM this year (big deal that it's defers interest free - interest rates are in the sewer right now), which is a $5MM bump up for the year, PLUS he gets to control next year at the same amount the Sox would have paid him if they'd wanted him - or he can go home to the Bronx or anywhere else he chooses, assuming, as Peter indicates, that Manny's still hitting the way only he can.
Looking at the wider picture? I think Manny did just fine. The 5 years he wanted was just so much Boras smoke. You can hate Boras all you want, but I'd probably sign him up to be my agent if I were young, talented and lucky enough to be a major league player.
If I DON'T have those deal details right, then please insert a "never mind" to ALL of my post using your best Emily Litella voices.
Manny looks and plays goofy, but he did all right by himself, with Boras' help.
And yeah, I will guess that Manny returns to the AL next year as a DH, poss/prob for the Yankees. Yeah, I'd love to see Girardi's eyes as they take in Manny's hair, Yup, that would sure sell a few newspapers. ;-)
Posted by: Mitchell
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March 10, 2009 10:28 AM
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One other twist. According to Ken Rosenthal, the Dodgers are prohibited from offering Manny arbitration if he is a Type A free agent after 2009. So, he could decline his 2010 option and hit the market and the team that signs him would not owe a draft pick. That should increase his marketability.
Posted by: Peter
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March 10, 2009 12:40 PM
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Mitchell, you are 100% right. He had no control with the Red Sox deal.
That said, if he had continued to hit AND been more team oriented, the Red Sox would have ex. those options and he would have been paid more upfront.
Either way he did just fine. And possibly, just possibly, that post was fueled by schadenfreude on my part.
Posted by: Andy | March 10, 2009 01:35 PM |
Andy? I try to stick with Gatorade instead of that Schadenfreud stuff. That brew tastes nasty to me. ;-)
I think that Manny/Boras have set this up to be a win/win for them. If Manny falls off this season, he gets $20MM next year - if he stays red hot, he gets to play "what am I bid" again in what will prob be a somewhat revived markeplace.
The Dodgers get to enjoy his talents for this year as Manny is incented to tear the cover off the ball all year in order to position himself for 2010.
And yeah, Manny would have gotten his money up front and in full, but I think that Manny, like Clemens and some other very wealthy players have zero issues taking deferred money. It's now thought of like an insurance annuity payment plan for these guys. When I think about that, all I can think of is that old line, "America, what a country".
Posted by: Mitchell
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March 10, 2009 02:59 PM
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