Monday, April 07, 2014
Long-term deals and club options
Jeff Passan goes through many examples, trying to describe the landscape.
One point that he didn't mention: if the option favors one side, then that side is going to pay for it. This is no different than stock options. So, the player didn't GIVE a team some friendly option, but rather, he SOLD the team an option or options. It's just wrapped into the salary.
It's the same kind of bad talking point, when people question "they're paying him 30MM$ at age 40?". No. They are paying him 40MM$ at age 32, and are deferring 10MM$ of that to age 40. They are paying him 20MM$ at age 40.
Are people going to complain when they pay taxes on their retirement plans? Well, probably. But, they got all that taxes deferred for 20, 30, 40 years. It's not like the government is saying to a 75 year old person: "We know you didn't earn a wage this year, but we still expect you to pay taxes."
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