Author Topic: Extend Rendon  (Read 66581 times)

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Offline HalfSmokes

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Re: Extend Rendon
« Reply #1150: December 05, 2019, 01:40:52 PM »

Deferred money is far more lost revenue than a small percentage of taxes because it compounds over time and you can't invest it, while still getting taxed on it. That's why deferred amounts have to be so much more. Scherzer was projected to get 165-175 million, but the Nats blew all the offers out of the way. However, with the deferments, the total value of he contract to Scherzer when it's all over is far less.

This is why Harper/Boras said no to the deal the Lerners offered. It was so backloaded that it would have barely been half of the stated value by the end of the contract.

Deferring half your paycheck to 7 years from now is way more noticeable and impactful than a 4-8% tax increase.

I would love to see your ‘math’ on this