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Old 12-05-2019, 01:38 PM   #1
plinko83
Minors (Rookie Ball)
 
Join Date: Dec 2015
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Your owner will not approve this contract

I attempted to negotiate a long-term extension with a star player in just his third year in the league.

He was asking for an 8 year deal worth about 120 million. It asked for only 1.5 million the next season (in what would be his first arb year), 6 mil the 2nd year and then approximately 16 million for each remaining season on the contract.

I was willing to do it and went to submit and was told my owner wouldn't let me submit a contract proposal that isn't more evenly distributed throughout the life of the contract.

That seems silly as the player is offering me a huge discount for year 1. When I try and redistribute the contract more evenly, he no longer is interested.

Is there anyway around this? It seems like a bug that I can't explain to the owner why this is a good deal for us and he shouldn't unilaterally deny me the right to offer the contract because it's not evenly distributed.
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Old 12-06-2019, 12:27 AM   #2
Matt Arnold
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You might just need to push the initial year up a little bit. For an 8-year deal, anything within about a 10X-12X gap between top and bottom years shouldn't have trouble being approved. You might just need to bump the first year up to the 2-2.5M range and the rest should be fine (might need to double check the total value - if you hit that, I think we trim numbers down so you might need to bump up the last few years back to where it used to be).
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Old 12-07-2019, 11:19 AM   #3
Anyone
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May I ask the reason for this?

If $90 million over 9 years is a good deal for a given player, it's even slightly better for the team if it's $1 million the first year working its way up to $19 million the last year than if it's $10 million every year.

I could more understand the player turning it down for being not enough right away than the owner rejecting it on those grounds.

That said, I tend not to back-load contracts so I don't find myself low on budget space several years down the road. If I have room in the budget I tend to try to front-load, unless option years are involved, in which case I'll then try to back-load into option years because those may not be paid at all (and if it'd the player with an option or opt-out, backloading gives the player more incentive not to opt out). Outside of throwing more of the expense into option years, though, I try to avoid back-loading personally, and thus have never run across this.

But it's hard for me to understand why owners would prefer to pay more up front rather than the reverse.
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Old 12-07-2019, 11:41 AM   #4
CBeisbol
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Quote:
Originally Posted by Anyone View Post
May I ask the reason for this?

...

But it's hard for me to understand why owners would prefer to pay more up front rather than the reverse.
It's only "better" from a Present Value standpoint. Which is, to be sure, an important standpoint. But there are others.
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Old 12-08-2019, 12:31 PM   #5
TomVeal
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Quote:
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May I ask the reason for this?

If $90 million over 9 years is a good deal for a given player, it's even slightly better for the team if it's $1 million the first year working its way up to $19 million the last year than if it's $10 million every year.

I could more understand the player turning it down for being not enough right away than the owner rejecting it on those grounds.

That said, I tend not to back-load contracts so I don't find myself low on budget space several years down the road. If I have room in the budget I tend to try to front-load, unless option years are involved, in which case I'll then try to back-load into option years because those may not be paid at all (and if it'd the player with an option or opt-out, backloading gives the player more incentive not to opt out). Outside of throwing more of the expense into option years, though, I try to avoid back-loading personally, and thus have never run across this.

But it's hard for me to understand why owners would prefer to pay more up front rather than the reverse.
Your owner has the same concern that you have: that the club will eventually be stuck with bloated contracts that will leave little room for signing new talent (and, worse, may be with players whose performance has plummeted).
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