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Baseball Primer Newsblog — The Best News Links from the Baseball Newsstand Friday, January 13, 2012Stark: Looking for a lower tax bracket
The District Attorney
Posted: January 13, 2012 at 07:35 PM | 14 comment(s)
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1. The District Attorney Posted: January 13, 2012 at 09:51 PM (#4036805)Why would it matter how they structure future deals? Tax is still based on AAV, isn't it?
I bet there are still games that can be played with that. At least they could use front loading to make a more valuable contract with the same AAV. I don't know if the hockey shenanigans with absurdly long contracts would go down well in baseball, but that is also a way.
Good points I guess, but how much is that really going to help? You can make a contract for the same nominal value more appealing with upfront money, but you'd have to some really extreme things for it to have a big luxury tax impact.
They only have three long-term contracts that extend beyond 2013. AAV of those is $74.4M (plus whichever of A-Rod's bonuses kick in -- not sure how those get handled; if averaged over the life of the contract it's a max of $3M per, but if averaged over the remaining life of the contract they could have quite an impact).
Is Prince really at a point where he'd consider that sort of thing? Compared to six years or more from someone like Washington, even if it's less money than he was hoping for?
But that was all based on the last set of luxury tax rules. The possibility of paying 10% instead of 50% on a big splurge in 2015 is a very different animal.
This nails it. MLB has greatly increased the incentive to get under just once.. AND there's a year coming up where it's possible (bye bye AJ and Soriano). Plus, b/c of some cheap young talent, the Yankees don't have to sacrifice too badly in '12 and '13. There's no such thing as "the yankees have an infinite payroll and don't care at all about the luxury tax". Everything is relative, and the goalposts just got moved.
I think he means that the third year of the deal won't count against the Yankees because he won't be on the Yankees anymore. And it won't count against the new team because they won't be at the luxury cap.
EDIT: So the AAV luxury tax hit is is $11 mil/$11 mil/$0
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