Question about revenue sharing salary?

by djoep2000 on Jan 21, 2012 8:06 AM EST

The Ranger posting fee exceeded 50 million. From my understanding, none of this money goes towards the Rangers actual Yu Darvish salary for revenue sharing.

My question is if a signing bonus is given does that bonus go towards revenue sharing salary?

For example: Yeonis Cespandis is given a six year contract for 24 million (6 yrs @ 4 million per year), with a signing bonus of 10 million. What is the actual dollar amount that the Yankees would have to declare for revenue sharing purposes?

Anyone know?

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Yeonis Cespandis

LOL

"Fans, for the past two weeks you have been reading about a bad break I got. Yet today, I consider myself the luckiest man on the face of the earth."

"There is no room in baseball for discrimination. It is our national pastime and a game for all." - Henry Louis "Lou" Gehrig

by Xavier10 on Jan 21, 2012 8:54 AM EST reply actions

Yeonis Cespandis

???

I'll do whatever it takes to win games, whether it's sitting on a bench waving a towel, handing a cup of water to a teammate, or hitting the game-winning shot.- Kobe Bryant

A.J. Burnett's only fan!

by nyyrocks29 on Jan 21, 2012 11:10 AM EST reply actions

Bizarro world Yoenis Cespedes.

"Fans, for the past two weeks you have been reading about a bad break I got. Yet today, I consider myself the luckiest man on the face of the earth."

"There is no room in baseball for discrimination. It is our national pastime and a game for all." - Henry Louis "Lou" Gehrig

by Xavier10 on Jan 21, 2012 11:35 AM EST up reply actions

Is he not sucking at Bizarro Winter Ball?

by waw on Jan 21, 2012 12:49 PM EST up reply actions

He hit a home run the other night and flipped his bat like he was Barry friggin Bonds.

Jesus Montero fangirl

by WhatwouldJeterdo on Jan 21, 2012 1:14 PM EST up reply actions

Good

It’ll convince Miami to spend even more on him.

I'll do whatever it takes to win games, whether it's sitting on a bench waving a towel, handing a cup of water to a teammate, or hitting the game-winning shot.- Kobe Bryant

A.J. Burnett's only fan!

by nyyrocks29 on Jan 21, 2012 1:31 PM EST up reply actions

I'm not sure

My understanding under the old CBA was that salary (annual+signing bonus+incentives) was all averaged out over all the years of the contract. So, for instance, Arod’s $275M/10Y deal would be worth $27.5M each year (adjusted to add bonuses) regardless of whether he made $1M or $200M this year.

We should also be careful with language here: the competitive balance tax is different from revenue sharing, and they are calculated differently.

Sorry I can’t be more help, but hopefully there are some keywords here you can use for more efficient Googling!

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by jscape2000 on Jan 21, 2012 11:35 AM EST reply actions

is the competitive balance tax something new? I’m not sure i’ve heard of that before.

by jetanumba2 on Jan 21, 2012 12:23 PM EST up reply actions

On the AAV being used

I wonder if a team could use this to their advantage. Use Pujols’s new contract for example, 10 year $254 million. This is probably his last contract, so it would be advantageous to a team to get the AAV down. Let’s say you go 40 year, $284 million, with the last 30 years as $1 million per year (a small cost for any team). This would lower the AAV to $7.1 million per year, from $25.4 million per year, and would free them up from luxury tax issues. Crazy, but it might just be crazy enough to work.

by cookiedabookie on Jan 21, 2012 12:50 PM EST up reply actions

That's a very interesting concept

And a helluva 401(k)

by waw on Jan 21, 2012 12:51 PM EST up reply actions

The IRS

will soon be at your door to learn more about your unique accounting strategies.

by DanielN on Jan 22, 2012 12:40 PM EST up reply actions

nothing wrong with the technique, it is still a contract, just with a much longer than average length

But no different than the Mets paying Bonilla for 30 years of deferred money – this way you make it part of the contract.

by cookiedabookie on Jan 22, 2012 1:02 PM EST up reply actions

i do believe that signing bonuses count.

posting fees go to the players team, so they do not, all money going to a player will. i think.

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by nodisrespect on Jan 21, 2012 12:05 PM EST reply actions

yeah i imagine its strictly payroll

and the posting fee is an independent transaction from the total payroll.

by jetanumba2 on Jan 21, 2012 12:22 PM EST up reply actions

I believe that the Rangers

are paying the Fighters in full, but it does count against their payroll. I think it was something like $7.1 Million a year until its full off.

by dasox313 on Jan 23, 2012 5:12 PM EST up reply actions

no it doesn't

by jetanumba2 on Jan 23, 2012 5:25 PM EST up reply actions

Signing bonus

A signing bonus can be worth anything. This is money that is given to the player when he signs the contract and does not count towards any salary cap the league would have. Minor League players generally do not have large signing bonuses unless they are top draft picks - Tigersy2k3

Looks like Yankees could give Yeonis a large sum for a signing bonus. Therefore, reduce the amount that would be consider for the teams salary cap.

by djoep2000 on Jan 21, 2012 11:22 PM EST reply actions