Originally posted by: Kevin
Is there a signing bonus or something? Baseball has salaries structured differently. For example, look at Roger Clemens. This year he is earning $0. However, the Yankees will be paying him for like the next 12 years or something...
It's called a typo.
I don't recall offhand, but I don't believe the entire 2003 Florida Marlins' player payroll is over $42 million this season.
And yes, deferred compensation was/is increasingly popular in MLB recently. Many players (or more accurately their financial advisers) saw the tax cut writing on the wall when G.W. Bush became president and foresaw millions of dollars in reduced federal income tax payments by deferring $$. It was also a way for teams to make a huge splash in the free agent market without literally breaking the bank for a few more years.
While it's a fuzzy numbers game, the assumption is still that many franchises are willing to sustain consistent operating losses so long as the franchise value appreciates enough to sustain the pyramid scheme. Judging from Disney's recent net-loss sale of the Angels, this is a poor assumption for many baseball franchises. The Dodgers' eventual sale (one of a handfull of premiere franchises) will establish a true benchmark, but is unlikely to be a nice profit for Fox either