Quote:
Originally Posted by Enoch Root
No other contracts can go beyond 8 years - it is cap manipulation, and I will be shocked if they don't eliminate this in the next CBA.
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How is the cap being manipulated ?
Why do you care if Vatrano gets 4.57 today vs the same equivalent amount in a decade ?
The cap hit is 4.57 either way
There are some small rounding advantages I imagine
1. Teams can probably get a higher guaranteed ROI on the funds they set aside to cover the deferrals then the rate they use to calculate current value . The dodgers apparently are saving millions on the arbitrage from the 1$ billion they deferred
2. A player may take a few % points less on the contract if the team defers (total real value of contract ) because they will more then make up for it in tax savings long term . This is where a very small cap savings could come into play , but it would be 1-2% of the salary
The contract isnt running more then 8 right in the sense they don’t divide the contract amount by more the 8 - they divide by 3