Competitive Balance Tax

[dcpatti]

The $3.85 million offload from Murphy is missing on that table, as is the roughly $1 million offloaded between Enny Romero and AJ Cole.  So it’s very very close but likely still over, unless the estimate on the benefits is higher than the actual assessment.

[PowerBoater69]

The $3.85 million offload from Murphy is missing on that table, as is the roughly $1 million offloaded between Enny Romero and AJ Cole.  So it’s very very close but likely still over, unless the estimate on the benefits is higher than the actual assessment.

Oh freak, I'll fix Murphy now. Thanks for the correction.

[varoadking]

The $3.85 million offload from Murphy is missing on that table, as is the roughly $1 million offloaded between Enny Romero and AJ Cole.  So it’s very very close but likely still over, unless the estimate on the benefits is higher than the actual assessment.

I don't know how the benefits are calculated.  If it's a function of salary, would they not also come down in a proportionate amount?  7%+/- of 14MM+/- might do it...

[PowerBoater69]

Adjusted down for Murphy and Cole. From what I can tell we will get hit with Romero's full contract (best case it drops the cap number by $300K). Noah Franks from WTOP has info that the Nats believe that the Strasburg and Scherzer AAV numbers will be lower than what COTS has. From what I can tell the calculation is fairly simple, total salary for guaranteed years divided by guaranteed years. Guaranteed years include player options but not team options. Bonus money is another big unknown that gets included.

[Bookman]

All this talk about offloads, taxes, caps, etc. only means Rizzo has surrendered this season.  Don't see any hope for 2019 so far.   Back to being a Royals fan where nothing is expected except bad baseball.

[PowerBoater69]

I don't know how the benefits are calculated.  If it's a function of salary, would they not also come down in a proportionate amount?  7%+/- of 14MM+/- might do it...

Benefits is a total for all of MLB divided by 30, it won't be much different from the COTS estimate.

[varoadking]

Benefits is a total for all of MLB divided by 30, it won't be much different from the COTS estimate.

So nothing is signing bonuses...seems odd...

Where does Soto fit in...other 40 man roster?

[PowerBoater69]

So nothing is signing bonuses...seems odd...

Where does Soto fit in...other 40 man roster?

Good question on Soto (I'd assume rookie salary for time of service). The rest of the 40 man is an estimated line item in the table. September call ups could be limited if the Nats think they are under the cap.

[HalfSmokes]

Good question on Soto (I'd assume rookie salary for time of service). The rest of the 40 man is an estimated line item in the table. September call ups could be limited if the Nats think they are under the cap.

September call ups may be the best indication that we get about where they think they stand with the cap

[PowerBoater69]

September call ups may be the best indication that we get about where they think they stand with the cap

CBT aside, I'd rather they not move Robles' service clock in garbage time. Ross I'd like to see and he's already counted.

[PowerBoater69]

From the CBA:

“Salary” shall mean the value of the total compensation (cash or
otherwise) paid to a Player pursuant to the terms of a Uniform
Player’s Contract, including any guarantee by the Club of payments
by third parties, for a particular championship season. Salary shall
include, without limitation, the value of non-cash compensation such
as the provision of personal translators, personal massage therapists,
and airfare and tickets exceeding normal Club allotments.

No word on application of camel rentals vs the cap.

[varoadking]

From the CBA:
No word on application of camel rentals vs the cap.

Rather than renting and expensing them, they may have bought them so they could capitalize the cost...

[HalfSmokes]

Do camels depreciate?

[varoadking]

Do camels depreciate?

Over 40 years...but I think you can accelerate it during the first 10...

[PowerBoater69]

More CBA:

If the Deferred Compensation is to be paid with interest at
an effective rate that is within one and one-half percentage points
of the Imputed Loan Interest Rate for the first Contract Year covered
by the Contract, then the Deferred Compensation shall be
included at its stated value. Otherwise, the Deferred Compensation
shall be included at its present value in the season to which
it is attributed, said present value to be calculated by increasing
any such payments by the Contract’s stated interest rate, if any,
and then reducing such payments back to their present value by
applying as a discount rate the Imputed Loan Interest Rate for the
first Contract Year covered by the Contract. If the terms of a Contract
are confirmed by the Association and the Office of the Commissioner
before the Imputed Loan Interest Rate for the first
Contract Year covered by the contract is available, the Imputed
Loan Interest Rate shall be the annual “Federal mid-term rate” as
defined in section 1274(d) of the Internal Revenue Code for the
month preceding the month in which terms are confirmed. If a
Uniform Player’s Contract uses the date or year in which a Player
retires as a triggering event for the commencement of payment of
the Deferred Compensation, it will be assumed for purposes of
calculating Salary under this Article only that the Player retires
on the day that he reaches age 40 or at the end of the Contract,
whichever is later.

I'll try to figure this out. And I'm trying to determine whether COTS has already factored the deferred money into Scherzer's contract. They have him listed at $28.7 million a year which comes out to be nine million less than the $210 million total.

[PowerBoater69]

Rizzo confirmed we are over. So we didn't make a playoff run and we didn't get below the cap. Rizzo needs to hire a better accountant, two years in a row they've screwed up.

[dcpatti]

How is it an accounting screw-up if they expect to be over and end up actually being over? 

[bluestreak]

Rizzo confirmed we are over. So we didn't make a playoff run and we didn't get below the cap. Rizzo needs to hire a better accountant, two years in a row they've screwed up.

The only way it really matters is if Harper leaves and it changes the draft pick. Otherwise, they are so close to the cap that the penalty will be minimal and there is so much money coming off that they are likely to be under next year and it resets.

[PowerBoater69]

How is it an accounting screw-up if they expect to be over and end up actually being over? 

Last year Rizzo said they were under, which turned out to be wrong. This year they are over by less than 2% of the cap, once they decided to scrap the season they should have been able to get under.

[HalfSmokes]

Rizzo strikes me as not the best with budgets

[PowerBoater69]

The only way it really matters is if Harper leaves and it changes the draft pick. Otherwise, they are so close to the cap that the penalty will be minimal and there is so much money coming off that they are likely to be under next year and it resets.

The article said $80 million is being freed up, but that is closer to $60 million after raises for arb and pre arb players. Being over the cap removes some flexibility to sign players and we have a lot of holes.

[dcpatti]

Last year Rizzo said they were under, which turned out to be wrong. This year they are over by less than 2% of the cap, once they decided to scrap the season they should have been able to get under.

And hiring a different accountant helps how? 

[Elvir Ovcina]

And hiring a different accountant helps how?

Depends on who the accountant is.  I hear Andrew Fastow might be available. 

[aspenbubba]

Depends on who the accountant is.  I hear Andrew Fastow might be available. 

I nominate Tom Terp. Free tix for long time WNFF members and special exclusive events.

[Mattionals]

Last year Rizzo said they were under, which turned out to be wrong. This year they are over by less than 2% of the cap, once they decided to scrap the season they should have been able to get under.

In order to get under though, you need somebody to take players salary. If they moved Harper, this is a moot point. No one wanted to touch Weiters and what was owed to him. Herrera ended up destroying his foot four days before the deadline. Hellickson is on the DL. Mark Reynolds makes next to nothing. Greg Holland makes even less. They weren't getting under unless they were able to move Herrera.