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Sunday, March 28, 2021

Sources: Randy Dobnak, Minnesota Twins agree to 5-year, $9.25M extension that includes 3 club options

Pitcher Randy Dobnak and the Minnesota Twins are in agreement on a five-year, $9.25 million contract extension with three club options, sources familiar with the deal told ESPN’s Jeff Passan.

The deal can max out at $29.75 million with the options and can grow with escalators, sources told Passan.

Undrafted out of Alderson Broaddus University in West Virginia, Dobnak signed with the Twins in 2017 out of the independent United Shore Professional Baseball League for $500 and reached the majors in August 2019 after spending nearly two years as an Uber and Lyft driver.

Dobnak, 26, is 8-5 with a 3.12 ERA in 19 career appearances, including 15 starts, with the Twins.

RoyalsRetro (AG#1F) Posted: March 28, 2021 at 06:29 PM | 33 comment(s) Login to Bookmark
  Tags: randy dobnak, twins

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   1. Joyful Calculus Instructor Posted: March 28, 2021 at 06:54 PM (#6010507)
I can't recall ever seeing someone sign a contract for such a long time frame with such a small payout.
   2. What did Billy Ripken have against ElRoy Face? Posted: March 28, 2021 at 07:03 PM (#6010509)
Uber has informed him that they are entitled to 49 percent, per the terms of the “independent contractor” agreement he signed.
   3. the Hugh Jorgan returns Posted: March 28, 2021 at 07:28 PM (#6010510)
I can't recall ever seeing someone sign a contract for such a long time frame with such a small payout.


Dude was making like $10 an hour driving for Mephistopheles. Now he has a chance to earn $9 mil minimum over the next 5 years. Dude is making like $5k a day before taxes, that's like 60 days of driving an Uber. I'm sure he's pretty happy with the terms.
   4. Walt Davis Posted: March 28, 2021 at 07:46 PM (#6010511)
Plus apparently he has $20 M of options/escalators.

Jon Singleton's contract was 5/$10 with escalators to $35 (per Wiki). Bote's is 5/$15 plus 2/$15 in option years, don't seem to be any escalators. Like those, this one is just a buyout of his arb years without him risking injury. Kyle Gibson was about the same age when he was entering his 2nd full, was thoroughly average, he made about $16 M going year-by-year and losing one arb case (over a measly $350 K). $16 is a lot more than $9 but two years early and guaranteed is a lot more relaxing than waiting for the next shoulder twinge.

Dangle a contract in front of a guy who knows how close he came to not making the majors and how tenuous his grasp is and they'll sign. I'm interested to see what his options/escalators look like ... but 3 club options totalling no more than $20 M is a lot to give away.
   5. RoyalsRetro (AG#1F) Posted: March 28, 2021 at 08:22 PM (#6010512)

I can't recall ever seeing someone sign a contract for such a long time frame with such a small payout.


A few months into his career, Salvador Perez signed a 5 year, $7 million contract that immediately became ridiculed around baseball. It was ripped up a few years later and replaced with a much larger deal.
   6. Howie Menckel Posted: March 28, 2021 at 09:59 PM (#6010513)
assuming his parents are middle-class, how could he NOT take this deal?

"You'll be set for life" - "yeah, but you could be set-er!"
   7. The Duke Posted: March 28, 2021 at 10:27 PM (#6010515)
I’ve always wondered what players net take is on deals. They have union fees, fees to their agent, state taxes galore, they are in the highest tax bracket while earning, they pay for all kinds of training and diet items. I bet on $30 million he ends up with about $8-12 million in his pocket spread over those years. It’s great money but it’s not “let’s buy a yacht” money.

I guess they get some juice from Topps and other personal appearance money
   8. caspian88 Posted: March 28, 2021 at 10:43 PM (#6010516)
I’ve always wondered what players net take is on deals. They have union fees, fees to their agent, state taxes galore, they are in the highest tax bracket while earning, they pay for all kinds of training and diet items. I bet on $30 million he ends up with about $8-12 million in his pocket spread over those years. It’s great money but it’s not “let’s buy a yacht” money.


Timo Meier of the San Jose Sharks described his net income as being around $400,000 of every million. Different sport, but basically every element affecting their income should be roughly the same. There's likely a big difference between California and Florida tax-wise (maybe not as much if you decide to own property local to your team), but not much between California and Minnesota.

Dobnyk isn't earning yacht money, no, but he's probably earning "never have to work again" money if he's careful with it.
   9. Howie Menckel Posted: March 28, 2021 at 10:49 PM (#6010517)
if you can set aside $5M when all is said and done - and our financial experts here could do this far, far better justice - than investing it with a 5 pct return is $250K a year, every year, on average.

if that's twice+ the annual household income you grew up with.... then, well, you can buy one yacht. and you can buy a sensible but really nice house.

ideally, you live on that investment income for many years. and a guy who has experience as a shared-ride driver doesn't strike me as lazy. from his mid-30s til his mid-60s, whatever money he earns just adds to the pile.

and if he was inclined to go the "hookers and blow" route - then there is even less reason to quibble over the dollars. thousands of pro athletes have proven that there is no stockpile of cash that can't be blown.

I once interviewed an older guy who won about $300M in the lottery. again, once you take the cash out front and all the other takeouts - okay, it's still a lot of money.

but he knew what he was doing. he moved to Florida, and he said his one indulgence was that he bought a Lincoln Continental. otherwise he lived on the investment income and set up all sorts of trusts, I think it was, for his family.

he lived comfortably before the windfall - and he didn't change a ton after. he just had more than enough to achieve every goal he ever had for his family and his various favorite charities.
   10. The Yankee Clapper Posted: March 28, 2021 at 11:09 PM (#6010521)
I can't recall ever seeing someone sign a contract for such a long time frame with such a small payout.
He’s not arbitration eligible until 2023, so it’d be a while before he earned ‘real money’ even if he does well. If he becomes an effective but relatively anonymous middle-reliever, he might not do better in arbitration. With the options & escalators, the deal looks pretty good. He’s protected from financial ruin if injured, and is set for life at something approximating an upper middle class or modestly rich lifestyle, after only pitching 75 MLB innings. Pretty good for a guy who didn’t have a big signing bonus to fall back on.
   11. Walt Davis Posted: March 29, 2021 at 12:13 AM (#6010524)
The league min income already puts you, give or take, in the top 1% of US households. $250,000 is around the top 5%. If you worked for 40 years at $100,000 per year (constant 2020 $, about the 66th percentile), you'd make $4 M in career earnings. Even if only $4-4.5 M ends up in his pocket, he's getting that upfront. Even if that's the end of his ML career, that leaves him with another 35 or so years to work if he wants to, whatever income his spouse (should ha have one) might bring in and, if he doesn't blow it all, about the worst-case scenario is $100 K per year in interest so top third of households. That quite obviously is a perfectly comfortable lifestyle even if he doesn't work another day in his life.
   12. Joyful Calculus Instructor Posted: March 29, 2021 at 01:09 AM (#6010526)
I didn't say it was a bad deal for him. Just noting that the contract structure was unusual.
   13. snapper (history's 42nd greatest monster) Posted: March 29, 2021 at 09:12 AM (#6010529)
if you can set aside $5M when all is said and done - and our financial experts here could do this far, far better justice - than investing it with a 5 pct return is $250K a year, every year, on average.

None of that really holds up. After taxes and commissions, he's only going to gross a little more than $5M. Even if he lives moderately, I can't imaging a pro-athlete spending less than $200K a year on living expenses. So, if he retires in 5 years, he'll have maybe $4M in the bank.

5% income is also high, you can usually take about 3% and not deplete principal, and in this rate environment, 3% is aggressive. Even if you say 4%, that's $160K pre-tax. Not bad, but not much better than upper middle class.

And that assumes he manages his money absolutely perfectly. If he does the usual athlete thing and buys houses for his parents and grandparents, invests in some friends BS businesses, goes through an ex-wife or baby mama or two, he's be broke by 45.
   14. Howie Menckel Posted: March 29, 2021 at 10:08 AM (#6010537)
as I noted, if he isn't going to be sensible with his money, no calculation is needed. he's broke - and it won't take until he's 45.

and am pretty sure a guy who was working for Uber a couple of years ago can get by with less than $200K a year in living expenses in Minnesota. point taken on annual returns, however.

seems as if he'll need to work when he turns 35 - but he'll also be in better financial shape than he ever could have dreamed of. still think there's no way he could afford to turn this down.
   15. snapper (history's 42nd greatest monster) Posted: March 29, 2021 at 10:19 AM (#6010539)
and am pretty sure a guy who was working for Uber a couple of years ago can get by with less than $200K a year in living expenses in Minnesota. point taken on annual returns, however.

He can, but he won't. It's not human nature to be making $2M and live like you're making $100K. Especially when you're surrounded by people making the same kind of money and living like it.

seems as if he'll need to work when he turns 35 - but he'll also be in better financial shape than he ever could have dreamed of. still think there's no way he could afford to turn this down.

He was going to make $2-4M over the next 3 years anyway, he could have turned it down, or gotten Minn to up the guarantees. I can't believe $2M a year was their max offer. That's peanuts in MLB today.

I can see why he took it, but Minnesota really took advantage of him.
   16. Pat Rapper's Delight (as quoted on MLB Network) Posted: March 29, 2021 at 10:26 AM (#6010540)
seems as if he'll need to work when he turns 35 - but he'll also be in better financial shape than he ever could have dreamed of.

I have to think too that -- all else being equal -- the job prospects for a Former Major League Baseball Player are probably better than they are for a Random Uber Driver.
   17. Froot Loops Posted: March 29, 2021 at 11:02 AM (#6010545)
I can't recall ever seeing someone sign a contract for such a long time frame with such a small payout.


Wayne Garland signed a 10-year, $2.3 million contract with the Indians. Of course, that was in 1976.
   18. What did Billy Ripken have against ElRoy Face? Posted: March 29, 2021 at 11:06 AM (#6010546)
It's not human nature to be making $2M and live like you're making $100K.
Well mom, remember my dream of owning a big house on a hill and how I used to wish for a living room with a plaster lion in it from Mexico and how I always wanted a large twenty-four seat dining table in a dining room with original oil paintings by Michelangelo and Rembrandt and remember how I always wanted a rotating bed with pink chiffon and zebra stripes and remember how I used to chit-chat with dad about always wanting a bathtub shaped like a clam and an office with orange and white stripes and remember how much I wanted an all red billiard room with a giant stuffed camel and how I wanted a disco room with my own disco dancers and a party room with fancy friends and remember how much I wanted a big backyard with Grecian statues, s-shaped hedges and three swimming pools? Well, I got that too.
   19. Howie Menckel Posted: March 29, 2021 at 11:45 AM (#6010554)
Post 18 was pretty much the philosophical game plan of the 27,000 sq ft mansion and massive backyard complex that Jayson Williams built with his father.

swimming pool was modeled after the one he liked when the Nets used to stay at the Oakland Airport Hilton.
16-seat mini-theater with couches of "the finest Corinthian leather."
skeet shooting range.
petting zoo.
160-yard par-3 golf hole, complete with ball washer.
go-kart track.
putting device where instead of only the putts that go in shooting straight back to you, after a few minutes the entire piece of carpet automatically lifted up and rolled ALL of the balls back.
"Evita Peron" balcony.

he eventually, er, had some legal bills to pay. so he sold the joint for $8M - a nice profit.
   20. What did Billy Ripken have against ElRoy Face? Posted: March 29, 2021 at 12:03 PM (#6010557)
Has anyone who installed a petting zoo at their home ever not gone broke?
   21. JRVJ Posted: March 29, 2021 at 12:56 PM (#6010564)
20, Pablo Escobar had a pretty damn large petting zoo and he didn't go broke... (though he did get killed by Colombian commandos, so there's that).
   22. Paul d mobile Posted: March 29, 2021 at 01:12 PM (#6010566)
Can you pet a Hippo?
   23. JRVJ Posted: March 29, 2021 at 01:13 PM (#6010567)
22, who am I to opine on a person's hippo petting preferences?
   24. Ziggy: social distancing since 1980 Posted: March 29, 2021 at 01:15 PM (#6010569)
I hear Kim Jong Un has a tiger. Probably don't want to pet that one though.
   25. Pat Rapper's Delight (as quoted on MLB Network) Posted: March 29, 2021 at 02:40 PM (#6010580)
Can you pet a Hippo?

Yes!
   26. Paul d mobile Posted: March 29, 2021 at 03:12 PM (#6010584)
Huh, apparently the Columbian Cocaine Hippos might be a good thing.
   27. Karl from NY Posted: March 29, 2021 at 03:23 PM (#6010585)
There's likely a big difference between California and Florida tax-wise

It's only half as much as you would think, since all the road games are taxed by the state where the game is, almost everywhere has the jock taxes now. FL, TX, WA residents still pay state income tax for all their road games not in one of those states.

Income isn't supposed to be double-taxed by two states, although I'm not sure if a state like CA manages to tax income from road games held in untaxed states.

Property tax is also a thing; it's unclear if someone remarking casually would include in "take-home" money that gets paid as property tax.
   28. Ron J Posted: March 29, 2021 at 04:52 PM (#6010597)
To restate Snapper, needs respond to available resources.

That said, I've had some fairly large swings in income and adapted to the new levels (with a little pain) within about two months. It's not so much that he can't adapt to the new reality but how quickly he does.
   29. Zach Posted: March 29, 2021 at 06:39 PM (#6010608)
Has anyone who installed a petting zoo at their home ever not gone broke?

Mike Tyson laughs bitterly by his pigeon coop.

In principle, a pigeon coop or a petting zoo shouldn't be that expensive, right? In terms of dollars spent per hour of enjoyment, raising pigeons is probably the cheapest thing Tyson has done in 20 years.
   30. Lowry Seasoning Salt Posted: March 29, 2021 at 10:07 PM (#6010631)
...all the road games are taxed by the state where the game is, almost everywhere has the jock taxes now. FL, TX, WA residents still pay state income tax for all their road games not in one of those states.


And yet somehow MLB has an antitrust exemption because it's not interstate commerce.
   31. jacksone (AKA It's OK...) Posted: March 30, 2021 at 11:14 AM (#6010683)
swimming pool was modeled after the one he liked when the Nets used to stay at the Oakland Airport Hilton.
16-seat mini-theater with couches of "the finest Corinthian leather."
skeet shooting range.
petting zoo.
160-yard par-3 golf hole, complete with ball washer.
go-kart track.
putting device where instead of only the putts that go in shooting straight back to you, after a few minutes the entire piece of carpet automatically lifted up and rolled ALL of the balls back.
"Evita Peron" balcony.


What's the added cost of a ball washer? $50 for the unit washer and $100 to install? I don't think that's going to be the straw that pushed him into bankruptcy. MIGHT have been the whole accidentally killing your chauffeur thing.
   32. What did Billy Ripken have against ElRoy Face? Posted: March 30, 2021 at 11:43 AM (#6010687)
What's the added cost of a ball washer?
Depends on who it is.
   33. Howie Menckel Posted: March 30, 2021 at 04:04 PM (#6010747)
I don't think that's going to be the straw that pushed him into bankruptcy.


I'm not positive that he ever filed, although his defense attorney once claimed he was "on the verge."

Jayson is unusual among ex-athletes in that he has a skillset unrelated to athletics. he is a certified bricklayer - amusing given his career .606 free throw percentage (one of his better lines, among many, was when he was asked once if he thought a particular key free throw had a chance to go in. "I did when it left my hand," he replied, "but then I saw the little Jerry West logo on the backboard duck for cover, and I knew I was in trouble!").

am told his craftmanship with building fireplaces is stellar. that could be an honest living, although last I heard he was focused on being a counselor working at 30-day rehab clinics for (hopefully) recovering drug users. has more credibility than a squeaky-clean-living counselor can manage - "At least you never killed anybody" is a compelling way to make miscreants feel a little better about their lot in life.

he also works with inmates who are nearing release from prison, telling them that for him, the first few nights of freedom were terrifying. after a couple of years where you are prevented from acting on your worst impulses, now the guardrails are gone, he notes.

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