Terms of Frank's 'Revised Payment Right' / ' Diminished Skills' Clause

[yyz]

According to this useful site:
http://www.bluemanc.demon.co.uk/baseball/mlbcontracts.htm

Frank's contract terms are:

2001: $9.927M
2002: $9.927M
2003: $9.927M
2004: $9.927M
2005: $9.927M
2006: $9.927M
-$3.827M deferred each year with interest
-In any year he fails to become an All-Star, win Silver Slugger or finish top 10
in MVP voting, team can elect to pay him $0.25M, plus $10.125M deferred.
-If they do, he can elect to terminate the contract and become a free agent


So I have two questions:

1) Until when is the $3.827mm of his current salary of $9.927mm deferred, and over how many years is it paid? One article mentioned that he 'reportedly won't receive some of that money until he is in his 50s,' but I haven't been able to find more detail.

2) What are the terms of the $10.125mm deferment if the 'diminished skills' clause is exercised? The only reference I could find was in a Phil Rogers article that said it is 'reportedly over ten years, with no interest'. But ten years starting when?

(I'm just curious. I'm a Frank fan and believe he will come back into form. )

[bc2k]

I also have a question about this contract. If Reinsdorf does invoke the diminished skills clause and deferrs the money, will that deferred money count towards payroll? If so, what year(s)?

[Daver]

Originally posted by bc2k
I also have a question about this contract. If Reinsdorf does invoke the diminished skills clause and deferrs the money, will that deferred money count towards payroll? If so, what year(s)?

In what terms do you mean by count against payroll?

The details of that contract are not public,so it is impossible to know how long the deferment is,but I doubt it will ever get invoked.

[Jerry_Manuel]

Originally posted by daver
In what terms do you mean by count against payroll?


Will the 9,750,000 go on the payroll? As if to say the Sox only have to pay Frank 250,000 that year, but it's listed as that they owe him 10,000,000.

I think that's what he's asking.

[Kilroy]

Originally posted by Jerry_Manuel


Will the 9,750,000 go on the payroll? As if to say the Sox only have to pay Frank 250,000 that year, but it's listed as that they owe him 10,000,000.

I think that's what he's asking.

It doesn't really make any difference. There's no salary cap to deal with.

[soxtalker]

Originally posted by Kilroy


It doesn't really make any difference. There's no salary cap to deal with.

It might be an interesting question if the Sox were one of the top spending teams in baseball; then they'd have to worry about the luxury tax. But we're not even remotely close to that point.

It could become an important issue in the future, depending on what unfolds from the labor situation.

[Daver]

Originally posted by Kilroy


It doesn't really make any difference. There's no salary cap to deal with.

It does make a difference,there is a 60/40 rule.