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Anthony's avatar

Interesting tidbit from an article on MLB economics over at MLBTR regarding salary deferrals. I get the use of deferrals in high tax states and Canada, makes complete sense for the player, but the interesting note came from Jeff Passan regarding the CBA which requires teams to set aside the future payroll commitments within two years of signing the contract. I haven’t read the CBA, but I would assume that non-deferred contracts would require at least the same. Meaning for teams like the Pirates, they may actually have to save up for these extensions if they are required to set aside the money when these contracts are signed. If that’s the case, it’s probably why the Pirates don’t sign many FAs to more than one-year deals, and it is also likely the reason that MLBPA dropped their grievance bc signing Hayes, Keller, and Reynolds to extensions required them to set aside those future payroll committments (approx $250m) on their balance sheet. Just some interesting stuff to pontificate.

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NMR's avatar

Man I love that kid.

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