Asking way too much for extensions

[ALB123]

I've encountered a different kind of weirdness a few times. I'm in 1985, so I'll use 1985 dollars. Player A isn't a big name or fan favorite, but he has been awesome for me and has 4-5 years in the MLB with my team.

I initiate the extension talks and he says he wants 3 years at $500,000 per season. I love this guy. He plays 5 positions well, so I offer him 3 years with a team option for a 4th year. I have budget issues this season and next, so the money offered is: $400K, $400K, $800K, $900K (team option & $200K buyout), plus I put in a $50K All-Star Incentive and throw in a No-Trade clause. I'm offering $100K more than he asked for for the 3 years he wanted, plus a very nice 4th-year increase and those incentives.

He ends up declining the deal and says he now wants 3 years at $530,000 per season. I click Meet Demand and I shake my head in disbelief.

It's weird how some Free Agents can be too. Player B was released at the end of 1984 and has been hoping a team calls - it's July 1985, so he's been out of baseball. He wants 3 years at $320,000 per season. I offer 3 years at $300,000 per season plus a nice All-Star incentive at $25,000. He will refuse and then say that he wants 3 years at $345,000 per season. I tell him to pound sand.

[CBeisbol]

Originally Posted by ALB123

I've encountered a different kind of weirdness a few times. I'm in 1985, so I'll use 1985 dollars. Player A isn't a big name or fan favorite, but he has been awesome for me and has 4-5 years in the MLB with my team.

I initiate the extension talks and he says he wants 3 years at $500,000 per season. I love this guy. He plays 5 positions well, so I offer him 3 years with a team option for a 4th year. I have budget issues this season and next, so the money offered is: $400K, $400K, $800K, $900K (team option & $200K buyout), plus I put in a $50K All-Star Incentive and throw in a No-Trade clause. I'm offering $100K more than he asked for for the 3 years he wanted, plus a very nice 4th-year increase and those incentives.

He ends up declining the deal and says he now wants 3 years at $530,000 per season. I click Meet Demand and I shake my head in disbelief.

Time value of money. You said it in your second sentence. 1987 dollars aren't worth as much as 1985 dollars.

400/400/800 is less (in 1985 dollars) than 500/500/500.

Offer 1400/100/100 and see what happens

[ALB123]

Originally Posted by CBeisbol

Time value of money. You said it in your second sentence. 1987 dollars aren't worth as much as 1985 dollars.

400/400/800 is less (in 1985 dollars) than 500/500/500.

Offer 1400/100/100 and see what happens

I will defer to your wisdom with ootp. So, thank you for letting me know about that. I assumed since wanted $1.5M overall and I offered $1.6M overall, plus an option to turn that into $2.5M overall - a full million more than he was looking for, not to mention the incentives, it would be attractive.

What I don't get, a player is very happy where he is and wants to stay there with a new deal. I offer him a deal structured a little different, but at a minimum $100K more than he asked. So, why wouldn't he say "I would really prefer what I asked for...", not increase his demand as if I insulted him. Maybe I just don't understand the economics of baseball very well yet.

[CBeisbol]

Originally Posted by ALB123

I will defer to your wisdom with ootp. So, thank you for letting me know about that. I assumed since wanted $1.5M overall and I offered $1.6M overall, plus an option to turn that into $2.5M overall - a full million more than he was looking for, not to mention the incentives, it would be attractive.

What I don't get, a player is very happy where he is and wants to stay there with a new deal. I offer him a deal structured a little different, but at a minimum $100K more than he asked. So, why wouldn't he say "I would really prefer what I asked for...", not increase his demand as if I insulted him. Maybe I just don't understand the economics of baseball very well yet.

It's not the economics of baseball
It's just economics
If you learn it from OOTP and apply it to your life, it'll be worth the investment.

The player's increase probably matches your offer, just structured differently.

As you prefer the structure of your deal, the player prefers the structure of theirs. Even if it's the same amount (in present dollars)

[Bears5122]

This was an issue last year too I believe. Guy asks for $120 million or something and ends up getting $30 million in free agency.

Now I understand some players overvaluing themselves. And I do think you should have to pay a premium to re-sign a player. But the gap between what they think they are worth and what they end up being worth seems quite large.

I think another culprit is that players don't want to play for certain managers too often. I can see it on occasion, but very few players are going to turn down the bigger offer. Maybe if the player doesn't like the manager, his demands are 20% more than the market value or something.

[ALB123]

Originally Posted by CBeisbol

The player's increase probably matches your offer, just structured differently.

As you prefer the structure of your deal, the player prefers the structure of theirs. Even if it's the same amount (in present dollars)

I never thought of that! If I find myself in this situation again, hopefully, I'll remember to double-check the math to see if it's right on the money (compared to my offer), or how much more or less it may be. Hopefully, I'll remember to do this each time I encounter this situation. I'm a curious person. I can't help it. Once, again thank you, very much.