@ComradeArthur@KCH_76@En_Plein_Aire@GarysheffieldJr They are, but that has nothing to do with the structure of the deal itself. A 10year/460m equivalent deal was extremely cheap compared to what he generates in revenue.
@En_Plein_Aire@KCH_76@GarysheffieldJr It’s not a problem at all for anyone who is financially literate. It’s one of the most basic concepts around. Ohtani never signed a 10/700m deal
@KCH_76@En_Plein_Aire@GarysheffieldJr It’s not worth $70m though. If you offered the Ohtani contract as a product, no one would pay $70m per year for it because it would make no sense.
@KCH_76@En_Plein_Aire@GarysheffieldJr The actual cost of the contract is $46m per year based on a 5% rate which is similar to a 10 year risk free bond rate. They reached that number by following that type of process
@En_Plein_Aire@GarysheffieldJr Give him a contract worth $460million but have it count as 70m per year for 10 years, makes zero sense. Your method works for a single purpose. Getting completely rid of the deferral system. It doesn’t have any actual defined benefit though.
@En_Plein_Aire@KCH_76@GarysheffieldJr It’s not, because it inherently makes no sense. There’s an argument for getting rid of deferrals for simplicity. But the value of Ohtani’s contract in the real world is the same as a 10year/$460m, and that’s being conservative. The real value is probably much lower.
@En_Plein_Aire@GarysheffieldJr The 70million per year contract is worth effectively the same as someone who would be on £46m per year, paid 10 years earlier. That contract is simply a 10year/$460m deal where all but $2million is invested for 10 years at a 5% rate of return.
@KCH_76@GarysheffieldJr There are realistically 2 arguments against deferrals, and no one makes either of them. The first one is for simplicity and uniformity across the league. The second is whether the practice takes advantage of the players themselves due to a lack of financial knowledge.
@KCH_76@GarysheffieldJr The real issue is that the rules for deferrals aren't strict enough. Teams shouldn't be able to leverage the money in the interim to profit, but rather the money should be sealed off solely to fulfil the contract obligation.
@KCH_76@GarysheffieldJr Its a non-issue. As I said, all removing deferrals will do is make the players take the current value and have to invest it themselves. They take a "lower hit" on the CBT, because deferred money is actually worth less than money in the present.
@S1eaLthy@Cream_Friche He has better stats than Elly since Elly has no vision, practically identical value to Seager, slight contact for speed tradeoff. He's very in place with similar rated cards.
@AdamBlais15@Cream_Friche I'm confused what your point even is here? If you want to look at all time hitting seasons from gold glovers, this actually proves my point. Whilst of course, that is a great season, there are players in other positions with much better with the bat.
@GarysheffieldJr I think people misunderstand the nature of deferred contracts. It's simply a service to stop outsiders taking advantage of the players personal finance knowledge. There should be more strict rules on how the money is held during the course of a deferred deal though.
@Cream_Friche a 96 overall shortstop should be a worse hitter than a 96 overall 1B. In exchange, you're typicallly getting cards with speed and fielding stats to make the necessary plays at a tougher position.
@sondraa don't know why people think this is some kind of gotcha moment. Both of these things can be true. You can be happy your team got a quality player and the meaning of the contract whilst still believing that the rules at their core are broken.
@N_Penn10@Cardiff_Bez@BallinFFB@LAJoneser you guys literally beat El Salvador 1-0 on the exact same day. Quite a difference in strength to be honest. You have a similar squad strength to the likes of Scotland. 1 or 2 strong players, another few sprinkled round the top leagues and the rest playing below.
@N_Penn10@Cardiff_Bez@BallinFFB@LAJoneser Scotland are wank, and we've beaten the likes of Spain relatively recently. Bosnia knocked out Italy to qualify. Your team looks good because you've played no one of strength and haven't beaten a european team since before the last world cup cycle in 11 attempts.