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View Full Version : Dempster Defers Salary To Give Cubs Flexibility


Crede24Thome25
05-28-2010, 06:09 PM
I applaud him for this. I wish more players would do it, who claim they want to win but only care about getting paid.
http://www.mlbtraderumors.com/2010/05/dempster-defers-salary-to-give-cubs-flexibility.html?success

soxfanreggie
06-03-2010, 11:36 AM
More power to him to do this. I'm not sure if this comes anywhere close to fixing the Cubs' problems though. They have a payroll of a $144, 359,000, so I doubt they're hurting for money. In addition, the savings on the time value of money implications is just not that great in terms of the Cubs' expenses.

RedHeadPaleHoser
06-03-2010, 12:41 PM
Class move by Dempster. A guy giving of himself to see the team get better.

jabrch
06-03-2010, 12:43 PM
I wonder if this is good for them or not...deferring it just means they move the costs to a future year, and increase the amount. That might reduce today's burden, but are they going to be able to go out there in the market and use that flexibility to imporve enough to win this year? Maybe...I guess they could...This makes sense if they have an acquisition in mind of a reliever or something that would really help them...but at the same time, cash flow is normally not a problem they have on the north side.

This would really help a cash strapped organization that can acquire an expensive player who would make the difference. If the Reds (for example) could go and get Jeter (for example) then this kind of thing would be brilliant. For the Cubs, it is just moving the eventual cost to later - and I don't know what they gain this year unless they really are at their cash expenditure thresholds and there is a big ticket player who would improve them enough to make a difference.

That said, I applaud Dempster for doing it. I wish more guys offered - and since it really doesn't matter to most of the veteran above average to star players (they are usually not living hand to mouth) it makes sense.

russ99
06-04-2010, 11:06 AM
I wonder if this is good for them or not...deferring it just means they move the costs to a future year, and increase the amount. That might reduce today's burden, but are they going to be able to go out there in the market and use that flexibility to imporve enough to win this year? Maybe...I guess they could...This makes sense if they have an acquisition in mind of a reliever or something that would really help them...but at the same time, cash flow is normally not a problem they have on the north side.

This would really help a cash strapped organization that can acquire an expensive player who would make the difference. If the Reds (for example) could go and get Jeter (for example) then this kind of thing would be brilliant. For the Cubs, it is just moving the eventual cost to later - and I don't know what they gain this year unless they really are at their cash expenditure thresholds and there is a big ticket player who would improve them enough to make a difference.

That said, I applaud Dempster for doing it. I wish more guys offered - and since it really doesn't matter to most of the veteran above average to star players (they are usually not living hand to mouth) it makes sense.

I've heard of guys getting burned on this kind of thing, like getting lowballed in future FA negotiations, owners wanting to push back deferrals, etc.

Players that do this and take one for the team often expect the team to have their back later on.

While it's altruistic for Dempster to do this, he has to realize baseball is a cutthroat business and some would see this as a weakness or an opening to exploit.

jabrch
06-04-2010, 11:32 AM
I've heard of guys getting burned on this kind of thing, like getting lowballed in future FA negotiations, owners wanting to push back deferrals, etc.

Players that do this and take one for the team often expect the team to have their back later on.

While it's altruistic for Dempster to do this, he has to realize baseball is a cutthroat business and some would see this as a weakness or an opening to exploit.


I'm assuming it isnt even altruistic. I'm assuming to defer the money, he's getting compensated at a fair market value interest rate. It's the same as if the club borrows money at that rate.

Ryan has made over 70mm in the past 8 years. He lives in a Wrigleyville/Lincoln Park Condo that is worth under $1mm. (purchased from a friend of mine). From what I hear, this isnt a guy who will burn through 50mm in a lifetime - much less a year - so deferring the money at fair market value...its nice - but I'm sure the compensation he is getting for it makes it worth it - and is more than he'd get by stuffing it in a CD and I am guessing it is more than expected return from a very conservative investment. I'm guessing this was a non-factor or a + for him. And if the team then can spin it to add a reliever or something, all win...

I'm curious why the Cubs need to do something like this? I wonder if there is trouble in the financial paradise that the Ricketts family walked into? I'm wondering if there was more than they knew going on...either in terms of debt, cost structure, liabilities or future spend needs... No facts - just curious...