Re: Ichiro one ups Jr...
This is common practice and has been a regular part of contract signings in the NBA and MLB for over 40 years. My ex-brother-in-law was a CPA for Arthur Andersen and one of his accounts was the TrailBlazers during the mid-70's. He's now CFO for UPS in Atlanta. Sidney Wicks, for example, had the same exact contract done, but was for much less money.
You just never read about it because it's personal, between a CPA, the client, and the team. Deferred money, often 10-20 years out has usually been put into many a contract, but the contract "numbers" are different for what the "public" sees.
Once a contract has been signed under the terms that fit the "sports" requirements, it's rewritten to benefit the team and the player by stretching it out over years. It benefits the team because they can invest money into some other area that pays an grows with interest, and as that money builds, use it to pay the player down the road. The player gets more money as he's taxed less because he's receiving a smaller amount each year than one lump sum.
This is standard practice for sports contracts. It's just none of our business and you never read about it because it isn't any of our business.
Rob Neyer: "Any writer who says he'd be a better manager than the worst manager is either 1) lying (i.e. 'using poetic license') or 2) patently delusional. Which isn't to say managers don't do stupid things that you or I wouldn't."
Last edited by Eric_Davis; 07-19-2007 at 05:57 AM.