Griffey Jr Traded to the White Sox

[RedLegSuperStar]

The question I have is.. What about all the deferred money Junior is still owed? Is Cincinnati picking that up? Is Chicago taking the tab?

[princeton]

Originally Posted by RedLegSuperStar

The question I have is.. What about all the deferred money Junior is still owed? Is Cincinnati picking that up? Is Chicago taking the tab?

would YOU offer to pay a player's salary from 2002, 2003, etc?

[flyer85]

Originally Posted by RedLegSuperStar

The question I have is.. What about all the deferred money Junior is still owed? Is Cincinnati picking that up? Is Chicago taking the tab?

during the Lindner years the deferred compensation was funded each year by an annuity and counted as part of the payroll. I do not know if the practice has continued under Castellini.

[M2]

Originally Posted by RedLegSuperStar

The question I have is.. What about all the deferred money Junior is still owed? Is Cincinnati picking that up? Is Chicago taking the tab?

As I always understood it, that money's already invested in a fund that will pay out over the next two decades. Theoretically, if they've been doing it right, the Reds shouldn't have to pay another dime beyond what's already in the fund to cover those future expenses.

[Nugget]

The way I understand the REDS are on the hook for the deferred money - which they should have already invested properly already.

The ChiSox are supposed picking up this year's salary - although accounting wise its a case of splitting the salary and the buyout - that way the cash gets evened out. Although, part of the salary is deferred so I think the ChiSox get the benefit that they pay out about $2 million this year, get REDS money to pay for their part of the buyout and have a few deferred payments into the future.

[Unassisted]

Originally Posted by M2

Theoretically, if they've been doing it right, the Reds shouldn't have to pay another dime beyond what's already in the fund to cover those future expenses.

Will deferred payments to Griffey count in the payroll calculation that determines whether the Reds qualify for luxury tax?

I could see avoiding luxury tax being held up as an obstacle in the future.

[princeton]

Originally Posted by M2

As I always understood it, that money's already invested in a fund that will pay out over the next two decades. Theoretically, if they've been doing it right, the Reds shouldn't have to pay another dime beyond what's already in the fund to cover those future expenses.

my investments have really been great lately

2001 John Allen: "We'll put this in something nice and safe: Fannie Mae"

[M2]

Originally Posted by Unassisted

Will deferred payments to Griffey count in the payroll calculation that determines whether the Reds qualify for luxury tax?

I could see avoiding luxury tax being held up as an obstacle in the future.

I can't, the Reds are still well below the league average (mean, not median). Only teams at the very top of the payroll scale pay the luxury tax.

Frankly, we could only hope to be so lucky as to have that problem, though I would think if the Reds counted Jr.'s full salary against the current and previous payrolls (per the luxury tax) then they couldn't be charged for it in the future. Whether they did that, I don't know.

[M2]

Originally Posted by princeton

my investments have really been great lately

Always invest in vice and greed, there's never a shortage.

[redsmetz]

Originally Posted by Nugget

The way I understand the REDS are on the hook for the deferred money - which they should have already invested properly already.

The ChiSox are supposed picking up this year's salary - although accounting wise its a case of splitting the salary and the buyout - that way the cash gets evened out. Although, part of the salary is deferred so I think the ChiSox get the benefit that they pay out about $2 million this year, get REDS money to pay for their part of the buyout and have a few deferred payments into the future.

I think that the way the Lindner regime handled the deferred payments throughout Griffey's time here is part of what hamstrung the budget these last eight years. As I've understood it, they've charged the entire amount of the contract to each year's budget. It's all accounted for. I'm not a financial wiz, but it always surprised me particularly with Lindner's background in insurance, you would think that they could have purchased some annuities at a lower cost for when the deferred money became due.

[westofyou]

Originally Posted by M2

Always invest in vice and greed, there's never a shortage.

Lindner took care of the funds to cover the deferred stuff... so they have that part covered

[WVRed]

Out of curiosity, what happens if Kenny Williams decides he wants Griffey back next season? Will the ChiSox be on the hook for his entire salary?

[Chip R]

Originally Posted by WVRed

Out of curiosity, what happens if Kenny Williams decides he wants Griffey back next season? Will the ChiSox be on the hook for his entire salary?

They have a couple of choices. They can pick up his option and pay him $12.5M or pay him their share of the buyout $2M and renegotiate a salary for 2009.

[Nugget]

Originally Posted by redsmetz

I think that the way the Lindner regime handled the deferred payments throughout Griffey's time here is part of what hamstrung the budget these last eight years. As I've understood it, they've charged the entire amount of the contract to each year's budget. It's all accounted for. I'm not a financial wiz, but it always surprised me particularly with Lindner's background in insurance, you would think that they could have purchased some annuities at a lower cost for when the deferred money became due.

That's what they should of done but I think for a number of purposes they accrued the entire expense of Junior's salary in each year. Given the nature of the contract - set times, set rates of interst and set deferals it would have been easy to write an annuity which covered the deferred payments.

[OnBaseMachine]

According to the Enquirer, Griff will bat 5th and play CF most of the time with the Sox.