📅 Published on: 2024-11-28 04:40:16

⏱ Duration: 00:22:09 (1329 seconds)

👀 Views: 919 | 👍 Likes: 34

📝 Video Description:

The Dodgers are signing Blake Snell to a massive contract, using their deferral hack once again to their advantage. But how are the Dodgers actually doing this? And are they basically breaking baseball for everyone else?

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🎙 Channel: Brenden Schaeffer – St. Louis Cardinals writer

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🕵️‍♂️ Transcript:

is it just me or does it feel like the Dodgers are on the verge of breaking baseball they just signed another Superstar to a massive contract and they’re probably not done spending how in the world are they doing this what’s going on everyone and welcome into this edition of be shave daily Brennan Schaefer with you it is Wednesday evening November 27th 2024 as I record here the night before Thanksgiving I want to talk a little bit about the Dodgers news and the significant major league b Bas news that came out earlier on Tuesday I believe it was Tuesday night when Blake Snell set the baseball world of Blaze with his Instagram post of him in a Dodgers uniform and at first everybody was wondering is he trolling everybody knows he’s pretty online guy and does the video game streaming and all that kind of stuff so wouldn’t put it past Blake Snell to be trolling Baseball fans with a post like that Marquee free agent of course he’s not really going to the Dodgers is he yeah he’s just posting well it didn’t take long before the BigTime baseball reporters around the country got wind of the news and confirmed it Blake Snell to the Dodgers is happening and it shook up the baseball world on Tuesday night because of course the Dodgers already have so many superstars they won the dad gum World Series this past October that just happened and that magical season comes on the heels for Los Angeles of bringing in sh Otani he wins the MVP award during a year that he doesn’t even pitch of course that’s half of the guy’s value and he wins the MVP basically with one hand tied behind his back so he’s going to come back next year in their starting rotation making them already better than they just were when they won the World Championship and now they go out and get Blake Snell who was awarded his Sai Young just 12 months ago and it seems as though the Dodgers are probably far from being finished there have been rumors about hey would they be in on Juan stto I don’t know if maybe the deal for Snell was a different allocation of those resources and they’re out of the stto race now we’ll see uh could they make a trade for guy like Nolan arado obviously arado recently saying I’ll play first base I shouldn’t say saying I should say that it was reported that arado would be willing to change positions to facilitate a potential trade to a contender from the Cardinals this offseason so what’s to keep the Dodgers from potentially going out and making a move like that I the sky is the limit RI Aki that’s another name going to come over from Japan and his situation is unique because of his age he’s not at the age where those players that come over from the nipon professional baseball league Allah shoh Otani a number of years ago he’s not old enough to get just a blank check he he can’t sign for any amount of money that an MLB team would want to sign him for it is going to be subject to the international spending budgets which basically means well you can’t overwhelm him with cash if you’re another team to basically pry him away from the Dodgers where it feels inevitable that he’ll go um now I guess the question would be is there going to be room in the rotation for Roki Sasaki but I feel like that’s the kind of problem that the Dodgers will figure out when they get around to it they’ll cross the bridge when they come to it as they say because look I mean this past July they were scouring the the market trying to fill out a rotation because of all the injuries that the Dodgers had Jack flarity is probably punching air last night that he doesn’t end up getting the contract offer from the Dodgers Blake Snell does which you know I don’t know actually how flarity feels about that but man it seems like he fited nicely he a a Los Angeles kid so would have probably loved to stay I don’t know that this means he won’t but you start looking at the death chart okay Blake Snell’s in there Otani is going to be pitching next year Yoshi Yamamoto it’s the big offseason acquisition a year ago for their rotation they signed Yamamoto and Otani but Yamamoto was the only one of the two that was p next year Otani will presumably be able to pitch Tyler glass now they traded for him I mean they’ve got Tony gonin they’ve still got Dustin may if he’s healthy what are you going to do with all those guys and then then you get into the prospects like Bobby Miller Gavin Stone the list goes on Landon neck I mean this is unbelievable what the Dodgers have potentially and I know I’m kind of counting my chickens on the Roki Sasaki thing but I think if you’re Sasaki and it’s not as though another team could go out and just say hey we’re going to win you over with money why wouldn’t you want to play on a team that already has guys like Otani and Yamamoto from your home country I I think that would probably be a pretty strong selling point oh and by the way you’re almost guaranteed to win the World Series couple times over the next handful of years if you do sign with Dodgers so everything is coming up Dodgers but how are they doing this it’s so crazy that you can sort of anticipate the way the narrative on these deals is going to go every time they do another one and I was I was all over it last night and it only took like two minutes after my kind of and cheek but kind of not tweet where I retweeted passen who had said that left-hander Blake Snell and the Dodgers are in agreement on a 5year $182 million contract pending a physical I said well I’m waiting on the report that 1785 million of that uh 182 is deferred until we colonize Mars like it it seems like every single time for the Dodgers the way they’re doing this is the Deferred money it’s like the unlimited money glitch if you ever played The Sims computer game it’s the rose bud hack it’s it’s the Konami Code I mean they are absolutely exploiting the system to their benefit now I think we have to be a little bit specific in understanding what exactly the Dodgers are doing and how they’re doing it thought there was an article by CBS sports.com Matt Snider that did a good job of breaking down the finances a little bit and he references reporting from the New York Post who had that Snell would get a $52 million signing bonus along with 13 million per season in deferrals over the 5-year contract so the total deal is 5 years 1882 million and the question is like all right we get it there’s no salary cap in baseball but there is the collective bargaining tax and you go over that luxury tax threshold which the Dodgers obviously have no problem doing like eventually you’re just spending more money per dollar for the right to spend that additional dollar it just continues to compound upon itself the Dodgers do not seem to mind they continue to do it and does that back the question of whether it’s really very much of a of an impediment to have the collective bargaining tax where it is a lot of people would say well I mean it’s good for the players because at least there’s one team out here that’s willing to pay these players a big-time market value deal and sort of be the team to set the market it would be bad for players and the union would not be in favor of folks going well you got to you got to shut this down the Dodgers are spending too much money the union would say I we want everybody else to spend with the Dodgers spend our players are worth it so I don’t generally think it’s bad for baseball that Blake Snell is getting five years 182 million frankly he should have gotten that type of deal last off season after he was the Sai Young and it was very strange that his his Market did not necessarily respond in the way that you might anticipate it would comeing off of a Sai Young season I think a lot of folks were worried about the durability of Blake Snell and wanted to see I guess another year of him and he had some injuries but started 20 games for the Giants when they signed him on that one-year deal I think there was the opt out that he was able to use only through 104 Innings so you know maybe to some extent the concerns were we’re not totally unfounded he’s going to be 32 years old next year we’ll see how much of a workload he ends up with for the Dodgers but the Dodgers don’t even care they they shouldn’t care because they’re set up so darn well first of all okay how are the Dodgers doing this that’s the the the primary question of this video well their ownership is willing to spend that’s number one they’ve got Deep Pockets the Dodgers are owned by a Consortium as I’m reading it here from Google known as Guggenheim baseball management and when you look at some of the investors that are involved in this thing you’ve got Magic Johnson you’ve got a movie producer Peter goober you’ve got Billy Jean King You’ve Got just the list goes on those are the biggest names that I know as far as like celebrity but you’ve got a ton of folks that are in this ownership group and they’re all after the same thing they’re like let’s let’s get really good and let’s spend a lot of our money to be really good and stay really good Mark Walter is the how would you say the controlling partner and the chairman kind of like Bill thewit is is that for the Cardinals but they’ve got a bunch of other folks with Deep Pockets as well that are getting involved in this thing and so that’s number one number two I mentioned the CBS sports article of how they’re doing it let’s talk about this 52 million signing bonus so using the signing bonus which is a check that I Snell gets cut that check and he’s got that money in the bank tomorrow is from what I understand it’s a signing bonus like if you’re a team and the NFL has done this for years and I’ve always been like they’re all circumventing the cap how is this allowed well it just is if you’ve got the $52 million to give the guy and you’re willing to cut the check right then and there then you get to do it and what that means is Blake Snell is getting the cash it’s on hand it exists it’s tangible he gets it deposited into his accounts 52 million because it’s 52 million you divide it by five which is the the number of years on the contract so if I’m understanding this correctly 10.4 million per year now you’re talking about what goes toward the competitive balance tax and if you had just said 5 years 180 million or 182 I think it was that ends up being like $ 36.4 million per year now the Dodgers aren’t saving infinitely on this but remember once they’re over that tax threshold every additional dollar spent now has a sear charge attached to it if you’re the Dodgers in the first year of a team being over that threshold which for 2024 was $237 Million it’s 20% additional fee essentially paid on however much you go over by and then if you are over that number for a second year in a row it’s a 30% search charge and I think the Dodgers were like well over 300 ion this past year so they do it again all right now it’s for talking like an extra 100 million essentially and that’s rough numbers I don’t know exactly what the Dodgers are going to do with their payroll but let’s just pretend for that 100 million you’re basically spending 30 million additional dollars it’s going to cost you 130 million to spend 100 million higher than that 237 number as a team and then if you’re three or more consecutive years above the threshold it’s 50% on the overages so if you’re over let’s say if you go over for a third year in a row and I think the Dodgers got underneath it before they started this whole Otani thing because 2023 if I’m not mistaken was when they were kind of aware of it and it was like uhoh they’re going to reset the threshold so that they’re able to they’re able to to get it rolling I guess that’s not true I’m I’m looking this up right now I thought they were trying to get beneath it which is why they weren’t spending as much in 2023 but they did they paid 19.4 million in competitive balance tax because they were above it so I guess that means this is going to be in that range where the Dodgers are three or more years it’s always going to be a 50% search charge on the the overages so I which last year equated to and I think they might have not quite yet been in the 50% range that’ll be applicable this time if I’m reading all this right 2022 they did it 2023 they did it 24 now I mean that would have been but it was 19.4 Million is is ultimately what I’m reading here that they owed and if these numbers are wrong somebody correct me because I’m just Googling I’m trusting what I’m I’m trusting what pops up on Google it’s always a dangerous game but I have there’s so many numbers that I’m going to throw at you that I wanted to just try to be brief with it but and give you a general idea if nothing else but the overages are going to be substantial but not quite as substantial because of the way the Dodgers can do their arithmetic so let’s get back to the Snell situation the signing bonus $52 million he gets that money up front any team could do this in theory but they have the cash on hand with that ownership group that’s what’s unique there would be some ownership groups that would say we do not have the liquid cash on hand to be able to do that we don’t have the $52 million just sitting out there to be able to facilitate something like that liquid to just be able to put it into Blake Snell’s bank account why is it beneficial well Blake Snell is now going to be willing to do these deferrals on his contract which is where the actual CBT savings come in why would he be willing to defer some of his money the time value of money anybody is taking an econ course understands that well yeah he just got some time value out of 52 million that they put into his bank account so if his average annual value on that 182 million is 36.4 million and he’s getting 52 I mean he’s getting a year and a half UPF front so if you’ve got that cash you’re probably going to be willing to then say okay I’ll do the deferrals that you want me to do because you basically just paid me a year and a half yesterday so we’re good I maybe not yesterday but you get what I’m saying the signing bonus is going to that’s going to happen for Blakes Nell that’s the beauty of it and so now it’s like why would these players take def ferles well they’re also getting a signing bonus the signing bonus does technically count but they spread it across those 5 years and that’s how you’re coming up with the the total that’s going to count against the CBT Thresh so 10.4 million per year that’s five 52 divided by 5 and then the deferrals are now $13 million per year they’re doing 13 million or Snell is willing to defer $13 million per year over the five years so that’s a significant chunk that you’re taking away from what he’s going to be paid annually but also the way that that gets figured the deferrals into the luxury tax because by spreading that out over additional years the per year basis of what that base salary that remains is going to be paid is going to be lesser and that’s how they end up getting around it it’s not substantial I think the total ends up being like 32 million in change instead of 36 million in change so about $4 million per year that they’re saving on the luxury tax threshold on this contract the A and this is how signing bonuses work if I’m not mistaken in all the sports and again anybody that has a big a bigger better background in this let me know I’m just kind of making sure I’m talking my way through this on the fly but I think that’s the way it works the deferrals there’s a there’s interest payments and and aspects that are added into that but you by deferring that salary end up not having to pay as much on the aav of what the contract is considered to be again because of the time value of money and it spreads it out and it it does that math for you so as much as I’m probably not making a ton of sense the long and short of it is they’re able to shave for now anyway like the problem is eventually this has to come home to roost but I figure it like won’t like just like the NFL teams that they say are oh he’s they’re in salary cap hell they’re not going to be able to get out of this and then they do it’s like the Cap’s not real well the the money’s not real in baseball either and I think the Dodgers have figured this out maybe someday there’s an issue with it and their their payroll is just so ridiculous that I don’t know what they’ll do I I have a feeling they’re going to get out of it though I I just have a feeling that the Dodgers either the rules will change around it or something’s going to give to where when it does all come home to Roose at the same time which I’m sure that they’re doing this effectively to where it doesn’t all pile up at the exact and you know have to come through at the exact same moment but I I just figure that the Dodgers will end up being okay that’s just the way it feels doesn’t it feel that way because they seem pretty confident in the way that they’re going about it but anyway you’re talking about instead of 36.4 million 32.4 or three or whatever it is million per year on the aav but remember if the are paying an additional 50% on the search charge on everything that goes above the CBT which they’re already above it you figure then that $4 million per year is actually relatively substantial it’s now $6 million per year so like they’re they’re basically from an an accounting standpoint as it pertains to the rules of Major League Baseball they are making $6 million per year just sort of disappear that they will not have to pay as a result of the way that they are doing this now down the road the the physical money still goes to Blake Snell but this is circumventing the cap which doesn’t exist it’s the CBT the competitive balance tax the luxury tax and they’re doing it over and over but it’s by having a signing bonus upfront the player goes you can defer some of that money that’s fine you just gave me a bunch of money I’m cool with it and it ends up working out really really well and then they can keep doing it over and over again because each time they do it it’s like well we’re already going on in on paying the SE charge but we can continue to find ways to make the SE charge be less as we continue to go over the CBT every year it’s genius and the reason it works is because they have the money like the the liquid cash on hand through that ownership group and because they’re willing to spend it to win and they’re probably not done it’s incredibly deflating if you are a fan of another team especially in the National League because you’re ticket to the World Series it goes through Los Angeles you have to beat the Dodgers somebody’s going to have to do it every single year because there I mean they wake up they roll out of bed in February and they’re a playoff team maybe they want win the division every year the Padre’s are pretty good there will be some other good teams out west but they’re a playoff team every single year they roll out of bed February 1st or whatever day they they have their pitchers and catchers report February 8th whatever it is and they’re a playoff team and man when you look at that roster it’s going to be a tough one to beat this even in the playoffs even with injuries like they just showed it last year that it can happen that way so are the Dodgers breaking baseball it kind of feels like it but at the same time you know there are other ownership groups that have money that if they wanted to spend like this they could but it does kind of set up a scenario where and again I’m I’m not in favor of of even the lower-end MLB owners being able to cry poor about how they don’t have enough money to be able to to contend or field the team or whatever to feel the competitive team I’m not in favor of that but with how we know these ownership groups are operating if there’s a handful if there’s four six seven whatever it is that are willing to go to this extent which maybe there’s really only one that’s the Dodgers but there are others like we know Steve Cohen with the Mets he you know he goes pretty hard in the paint as well so if if there’s just a few kind of all the best players are going to end up on those teams right that’s that’s sort of the the game that has to be played the disparity has never been more clear right but it’s it’s sometimes a disparity caused by a lack of ownership groups willing to spend the money that could be spent like I I’m not in favor of just letting the Pirates off the hook and letting the Athletics you know letting John Fischer off the hook like I think those organizations should be doing more rather than trying to to pinch and skimp and save as much as they possibly can and then still collect the revenues and the TV money through MLB and the all that like I don’t agree with that but at the same time I’m not going to sit here and say this is bad for baseball that the Dodgers are spending because I mean the game grows players make more money the that’s that’s the evolution of time and that’s a sign that your league is in good shape when player salaries are in good shape but you can make a case that this competitive balance tax situation is is one that the Dodgers seem to have have resolved they seem to to be pretty comfortable with where that where where that thing’s sitting and how they’re handling it over the course of time let me know your thoughts on this Baseball fans Cardinal fans this channel is typically featuring a lot of cardinal videos but this is this is a baseball conversation and it’s it is interesting how do fan bases feel about where the Dodgers at how do Dodgers fans feel let me know how you feel if you’re a Dodgers fan like yeah you probably love it but do you see that this is turning into a it’s almost kind of making a mockery we don’t normally think about 162 Game season coming down to stuff that happens in November it it shouldn’t really be that way and even last year when Otani signed we all said it we all said oh there it goes there goes the season Dodgers win but they they still had to play it right they still had to go out there and do it but it really did it felt that way then and it kind of does feel that way now a little bit let me know what your thoughts are and if you like this kind of conversation if you like baseball videos and you don’t mind being inundated with cardal videos mostly we’ll talk a lot of Major League Baseball especially in the offseason when there’s a lot going on hit subscribe on this channel and make sure you’re locked in for the full MLB off seon appreciate you guys as always for listening and we’ll talk to you next time on bsha daily peace

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