The Most NIGHTMARE Contracts In Baseball

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48 Comments

  1. Yall need to consider the time value of money. For the most part, the teams benefit by prorating these contracts. Think about it like this: a million dollars today is worth ALOT more than a million dollars in the future b/c a dollar today can be invested and accrue interest/ produce returns. Reason why its better to take a lumpsum payment vs annuity if you win the lottery!

  2. Of course you didn't look at some of the really older contracts like that that Mike Hampton signed from the early phases of free agency. But considering what the average players were making the time these were all so highly ridiculous contracts that panned out really bad for various teams during the 1980s before the luxury tax

  3. People act like Chris Davis and Bobby Bonilla are the only two players to ever get a deferred contract. There's been dozens of players who've done it going back to the 1980's. It's been a negotiation tactic for almost as long as there's been free agency. It seemed especially popular in the 90's. It's really a win-win, owners get to spread payments out over many years and the player gets a guaranteed paycheck for years after retirement.

  4. A contract’s AAV is what goes against the luxury tax. Deferring just allows the club to pay a certain portion at a later date(s) and have more cash on hand at the current time. In this case is was to invest with Bernie Madoff.

    Oops.

  5. Bonilla deal, while hilariously stupid (they literally end up paying him several times the value of his 6 million buyout), italso doesn't really matter to the mets financially. 1 million dollars is a drop in the bucket, even for the wilpons, let alone cohen. So I don't think it's the WORST.

  6. So how many pitchers got great contracts because Spider Tack and now get rocked and aren't worth what they get for a single year?

  7. One thing i always wondered with deferred contracts was how does it affect the teams "reported payroll" like MLB doesnt have a Cap but they do have a payroll threshold 4:15 so Chris Sale for instance from 2024-2035 does his contract dissapear then in 2035 does his money still count toward the teams official payroll thats reported or is it just like part of the teams budget like a hitting coaches salary or whatever🤔

  8. yo bro you gotta work on the background music, the background music in your videos has been getting progressively louder and at some points it was louder than you were in this video

  9. These contract centric videos are great. They show how broken the free agency system is in baseball. It's borderline criminal. The MLBPA is a mafia organization. It's so broken and needs to be fixed.

  10. Jose berrios allowed the most runs and hits of any starter in the mlb last year. Only the first of seven years for $130 million. So happy that my team’s management are a bunch of crayon eaters

  11. Sale’s contract is weird and the Sox will
    be paying him a long time, but despite bad luck with injuries the last two years and one uncharacteristic season the year before that at first ERA glance appears quite down (4.4 ERA despite a 3.39 FIP, 1.08 WHIP, 13.3 SO/9), he is just 34 and has a career 2.92 ERA, strikes out more people than most anyone, and finished top 6 in CY Young for SEVEN straight years before those unfortunate years. With how much people are getting paid nowadays, I’ll take a 34 year old with as good of career numbers as most any pitcher around for just $17m a year! I’d be very mad if we traded him.

    I fully expect him to return to form. I do not think he is doomed for failure like some of the other examples here like Davis.

  12. I think the most embarrassing thing for the Tigers about Baez is that they are going to be done paying Cabreras ginormous contract in 2023. How do these baseball teams not learn their lesson overpaying for players?

  13. I don't know if many people realize this, but the reason the Met's were confident to defer BB's payments at such a rate is because they had their money with Madoff. The Mets were "guaranteed" a rate of return well beyond prevailing interest rates so it made fiscal sense to defer the money. If Madoff's scheme were actually true, the Met's owners at the time would have made sizable profits on the spread between their return against deferred payments.

  14. does the player feel shame in taking money while being useless? also does the organization resent the player knowing that they know that they have it made?

  15. So many of these videos involving deferred contracts miss the key point about a deferred contract. The lump sum is invested and the payments are done from interest on the lump sum and if done correctly and invested properly, benefit the team and the player.

    It's important to make a distinction between toxic contracts and deferred contracts that are in fact not toxic.

    As far as other famous deferred contracts, the reason Bobby bonilla's is so bad is because the specific investments his lump sum was tied up in expected to account for the interest payments to keep paying Bobby, were involved with Bernie Madoff. So basically the lump sum doesn't exist anymore and he's being paid directly out of pocket.

  16. Fun fact Bobby Bonilla also collects half a million from the Baltimore orioles from 2004 through 2028 every July first .

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