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Happy Chris Davis Day!
https://mail.chicagofanatics.com/viewtopic.php?f=92&t=126110		 Page 1 of 1
Author:  Frank Coztansa [ Mon Aug 16, 2021 6:56 pm ]
Post subject:  Happy Chris Davis Day!
Quote:
After 14 years as a Major League slugger, Baltimore Orioles star Chris Davis announced his retirement from baseball on Thursday, leaving the game as a former All-Star and two-time league leader in home runs. But while Davis will no longer take to the diamond, he'll still reap the financial benefits of being a Major Leaguer for a long time to come and become yet another illustration of the perks of deferred payments.

As noted by Spotrac, Chris Davis is set to receive $42 million in deferred payments in a 15-year period from 2023 to 2037 as a residual after-effect of the seven year, $161 million contract he signed with the Orioles in 2016.

After receiving his full $23 million salary in 2022, Davis will earn:

-$9.16 million annually from 2023 to 2025
-$3.5 million from 2026 to 2032
-$1.4 million from 2033 until 2037

At that point, Davis will have turned 51

https://www.cbssports.com/mlb/news/chri ... -payments/
Author:  Regular Reader [ Mon Aug 16, 2021 7:02 pm ]
Post subject:  Re: Happy Chris Davis Day!
Good for him. Just too bad that he apparently didn't have the ability to handle his own money. He should've retained Denis. :D
Author:  denisdman [ Mon Aug 16, 2021 7:14 pm ]
Post subject:  Re: Happy Chris Davis Day!
Regular Reader wrote:
Good for him. Just too bad that he apparently didn't have the ability to handle his own money. He should've retained Denis. :D


Yup….Dman would have helped him with the whole risk/reward and time horizons thing. But he seems like he will do just fine. He won’t make as little as me until annually until 2033. :wink:
Author:  Regular Reader [ Mon Aug 16, 2021 7:20 pm ]
Post subject:  Re: Happy Chris Davis Day!
:lol: Point taken.
Author:  RFDC [ Mon Aug 16, 2021 7:22 pm ]
Post subject:  Re: Happy Chris Davis Day!
Nice deal for both sides. Can the Cubs get Heyward to do something like that
Author:  Regular Reader [ Mon Aug 16, 2021 7:39 pm ]
Post subject:  Re: Happy Chris Davis Day!
RFDC wrote:
Nice deal for both sides. Can the Cubs get Heyward to do something like that

Give him a percentage of the new sports book revenues until 2051.
Author:  good dolphin [ Tue Aug 17, 2021 7:56 am ]
Post subject:  Re: Happy Chris Davis Day!
why do reporters continue to advance the narrative that deferred payments are good for the worker?

You can have all your money now, or you can have that same amount a little bit at a time allowing me to earn the interest on your money.

Any deferred contract payment day should be called Jerry Reinsdorf day, the creator of such contracts in baseball. Do you think JR created the method because he wanted to help the players?
Author:  Frank Coztansa [ Tue Aug 17, 2021 9:26 am ]
Post subject:  Re: Happy Chris Davis Day!
Taxes on a lump sum could be brutal.

It could be that Davis genuinely wants to help the O's, and deferring money can help with payroll and expenses.

He's made $23 million every year since 2016. He'll get $22 million next year. He also has three young girls so as they get to their teens he'll have money rolling in to pay for basically whatever college they want to attend. I get your point, but's Davis will be fine.
Author:  RFDC [ Tue Aug 17, 2021 9:29 am ]
Post subject:  Re: Happy Chris Davis Day!
And some guys may not be able to be disciplined to do well with a lump sum payment. It is one of those things that sounds nice and easy to guys in our situations, but some just don't do well with a lot of money dumped in their lap at one time. This way he will have things spread out for the long term.
Author:  conns7901 [ Tue Aug 17, 2021 9:42 am ]
Post subject:  Re: Happy Chris Davis Day!
He made sure he has guaranteed million dollar level income into his early 50s while he figures out what to do with the rest of his life. Sure it is not the best deal he could have made, assuming he invests properly, but not everyone does well in that sector.
Author:  vitoscotti [ Tue Aug 17, 2021 10:02 am ]
Post subject:  Re: Happy Chris Davis Day!
Seems like a ploy by bad money long term MLB free agents to start charitable foundations to take the heat off. If you're got 161 million guaranteed how do you not give back some to the in need? With write offs, corporate help, shrewd lawyers and accountants they're probably not out anything when it's said and done.
Author:  Nas [ Tue Aug 17, 2021 10:08 am ]
Post subject:  Re: Happy Chris Davis Day!
If you have $160M contract, you're only pocketing about $80M. That's still a lot of money, but not as much as $160M.

I don't think it'll get better than Bobby Bonilla Day.
Author:  good dolphin [ Tue Aug 17, 2021 10:20 am ]
Post subject:  Re: Happy Chris Davis Day!
RFDC wrote:
And some guys may not be able to be disciplined to do well with a lump sum payment. It is one of those things that sounds nice and easy to guys in our situations, but some just don't do well with a lot of money dumped in their lap at one time. This way he will have things spread out for the long term.


If a player is so incapable that he needs to be saved from himself with exotic payment schedules, he'd be better off taking all his money today and putting it into some kind of trust that is inaccessible and earning money for him.

The only argument that deferred money benefits the player is that the owner is willing to give a higher total contract if the player defers than if he doesn't defer.
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