tag:blogger.com,1999:blog-36360371.post2551926365493208861..comments2024-03-13T00:46:47.172-07:00Comments on Sons of Steve Garvey: Manny NPV'ing MannySteve Saxhttp://www.blogger.com/profile/00930320282262607468noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-36360371.post-23457628263678006032009-03-02T11:52:00.000-08:002009-03-02T11:52:00.000-08:00StolenMonkey - an assumption that Manny's tax rate...StolenMonkey - an assumption that Manny's tax rate increases from 35% to 39.6% after 2010 is already included in the analysis.Eric Karroshttps://www.blogger.com/profile/04070527828477695509noreply@blogger.comtag:blogger.com,1999:blog-36360371.post-23623693382531502522009-03-02T10:45:00.000-08:002009-03-02T10:45:00.000-08:00Don't forget that salary after 2010 will be taxed ...Don't forget that salary after 2010 will be taxed higher too. I found the exception to rule 5.StolenMonkey86https://www.blogger.com/profile/17709590940248196445noreply@blogger.comtag:blogger.com,1999:blog-36360371.post-39804188342334177672009-03-02T07:19:00.000-08:002009-03-02T07:19:00.000-08:00Yeah, I found it hard to get clarity on specifics ...Yeah, I found it hard to get clarity on specifics of the exit clause. If it is indeed only $10 million, then the exit clause is meaningless and McCourt's spin on how he "really listened to what Boras wanted" or whatever he said seems more disingenuous. If this is the case, this offer boils down to the same deal as back in November but with 5-6% less money. Given how the Manny market has dropped since then, that seems fair to me from a pure numbers standpoint, but they should have known it'd never be accepted and damages the process.<BR/><BR/>If it is only $10 million for the 1 year option, it seems like making the offer at all was just a doomed PR play.<BR/><BR/>Anyways, from here on out I'm going to try to stop caring about what happens with this.Eric Karroshttps://www.blogger.com/profile/04070527828477695509noreply@blogger.comtag:blogger.com,1999:blog-36360371.post-50070873491544698452009-03-01T22:22:00.000-08:002009-03-01T22:22:00.000-08:00Finally, Kelly Clarkson and Scott Boras in the sam...Finally, Kelly Clarkson and Scott Boras in the same blog post. About time.Orelhttps://www.blogger.com/profile/01136247489970851448noreply@blogger.comtag:blogger.com,1999:blog-36360371.post-45719619865828683992009-03-01T21:12:00.000-08:002009-03-01T21:12:00.000-08:00Nice job EK. The only thing I'm not sure of is if...Nice job EK. The only thing I'm not sure of is if Manny would receive $15M more if he chooses to execute the option after year 1 and exit the deal. According to <A HREF="http://www.latimes.com/sports/baseball/mlb/dodgers/la-sp-dodgers-manny-ramirez28-2009feb28,0,124033.story" REL="nofollow">Dylan Hernandez,</A> the deal was:<BR/><BR/><I>Under the terms of the contract that Ramirez was offered by the Dodgers on Wednesday, he would have received $10 million this year. And by exercising the option for the second year of the deal, he would've received $10 million in 2010.<BR/><BR/>Ramirez would have been paid the remaining $25 million over the next three years without any added interest. He would've received $10 million in 2011, $10 million in 2012 and $5 million in 2013.</I><BR/><BR/>I was listening to sports talk radio out here in LA (I know, not the most reliable source) and they said that if Manny walked after year 1, it was only the $10M which was guaranteed him; the other $35M in the deal was contingent upon him picking up the option. Not sure if this was accurate, or if more info came out subsequently, or what.Steve Saxhttps://www.blogger.com/profile/00930320282262607468noreply@blogger.comtag:blogger.com,1999:blog-36360371.post-80914433328772222942009-03-01T18:55:00.000-08:002009-03-01T18:55:00.000-08:00Ah, thanks Ken. Even better. I will adjust accor...Ah, thanks Ken. Even better. I will adjust accordingly.Eric Karroshttps://www.blogger.com/profile/04070527828477695509noreply@blogger.comtag:blogger.com,1999:blog-36360371.post-45494228750478216252009-03-01T18:50:00.000-08:002009-03-01T18:50:00.000-08:00Very closeThe official published "Risk Free" rate ...Very close<BR/><BR/>The official published "Risk Free" rate of return is currently 3.80%<BR/><BR/>http://www.federalreserve.gov/releases/h15/data.htmkenhttps://www.blogger.com/profile/02744213858476264784noreply@blogger.com