I didn’t say it’s a good investment. I said it literally cost them millions to have money deferred. What I did actually say is that if they ignore the tax part but care about deferred money, then they are being dumb because they are basically the same thing. And if they have even halfway decent money managers, they are telling them the same thing.
Lol, they are not the same thing. Not even close.
Scherzer's initial deferred payment of 15 million would be worth 24 million if he had not gotten deferred money with a return rate of 10%.
This is why Scherzer got 210 million instead of ~175. Deferred money is a loser for the player, regardless of tax rates. If it werent, every Cali and New York team would sign all their players to deferred money.
Players arent picking where they play based on taxes. They make more money than god. They dont care. Their agents dont care because they get paid a percentage before taxes. Money is a status symbol. Overall worth and AAV are all that matter.