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?
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.
I'm not a system player. I am a system.
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 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.
I'm not a system player. I am a system.
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.
“In the same way that a baseball season never really begins, it never really ends either.” - Lonnie Wheeler, "Bleachers, A Summer in Wrigley Field"
The Baseball Emporium - Books & Things.
The Baseball Bookstore
http://tsc-sales.com/
http://tscsales.blogspot.com/
http://silverscreenbooks.com/
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.
According to the Enquirer, Griff will bat 5th and play CF most of the time with the Sox.
Board Moderators may, at their discretion and judgment, delete and/or edit any messages that violate any of the following guidelines: 1. Explicit references to alleged illegal or unlawful acts. 2. Graphic sexual descriptions. 3. Racial or ethnic slurs. 4. Use of edgy language (including masked profanity). 5. Direct personal attacks, flames, fights, trolling, baiting, name-calling, general nuisance, excessive player criticism or anything along those lines. 6. Posting spam. 7. Each person may have only one user account. It is fine to be critical here - that's what this board is for. But let's not beat a subject or a player to death, please. |