The Los Angeles Angels may pay Anthony Rendon ANOTHER $38.5 MILLION to go away
I’m gonna ask him right now because I know he’s got people listen to the show. Hey, if you could ask Mr. Borass a quick question. Does he apologize to teams ever when he lies to them? When he convinces Octogenarian owners that a player is the best last piece, does he then go when that player stinks and that player doesn’t perform and that player’s overpaid? Does he ever say, “Oh man, I got that one wrong.” I was thinking about that because of Anthony Rendone. Anthony Rendone is an Anaheim angel of Los Angeles. When Anthony Rendone won the World Series in 2019 with the Washington Nationals, he was an well above average third baseman. Well above average middle-of the lineup hitter. When the Los Angeles Angels signed him to that 7-year, $245 million contract, the Angels were lauded. They got the best position player on the market to combine with Otani and Puhol to make the Anaheim Angels the bell of Los Angeles. Well, Anthony Rendone’s time with the Angels is mercifully coming to an end. He’s got one more year left on that deal. He’s only played 257 games with the Angels out of a possible 1,032. Anthony Randon is still owed 38.5 million this coming season. And this weekend, word came out of a buyout of a negotiation to get Anthony Rendone out. There is a misunderstanding about buyouts. So I wanted to explain when a player is guaranteed money. In the first hour of the show we talked about guarantee what it means. Anthony Rendone is owed $ 38.5 million this year. When you read about a buyout, it doesn’t mean that he is going to be released by the Angels and not paid his $ 38.5 million. Scott Boris and the players union never ever allow a player to give back guaranteed money. The player has to get something in return for any right that they give up. Any contractual obligation of a team must be satisfied. The union will not have it any other way. To say nothing that we’re in a negotiating year, but even in the middle of a CBA, they would not allow any right to be diminished. The only solution for Arty Moreno and the Angels is to outright release him. Having Anthony Rendone on your 40man roster, having him on your 60-day injured list and therefore not on your roster, but still a part of the organization. There is no reason for it anymore. I would have designated Rendone for assignment two years ago. I understand the pain that an owner feels about designating a player and still owing that player $100 million or $50 million or $38.5 million, but they didn’t. They kept him around. Why is there talk of a buyout now with one year left? Is that because all of a sudden Moreno is willing to release a player and pay him the $ 38.5 million? because you don’t need to do a buyout if you just release the player. But instead, the Angels are looking for a favor. The Angels are looking to negotiate with Anthony Rendone in order to spread and and this has not been written that I’ve seen, but I’m just giving you from my experience what buyout negotiations are. I want you off the roster. Well, I can do that. I’m in charge of that. I don’t want to give you $38.5 million to count toward my luxury tax payroll. Well, I’m not hitting the luxury tax threshold, so that doesn’t matter to me. But if you’re a team that is going up against the luxury tax threshold in baseball, it’s why you see deferrals. It’s why you see discount rates that are argued about between union and commissioners. It’s because salaries are calculated according to the present value of the contract. Which is why people misunderstood the Otani deal. People thought the Dodgers by paying Otani only $2 million and deferring $68 million that they were only having a $2 million hit to their luxury tax payroll. That’s not accurate. You take the $700 million paid over 20 years, you discount it, you come to an agreement with the union, call it $450 million over 10 years, you straight line advertise it. That’s a $45 million hit per year to your luxury tax. And the reason you do that is you don’t want teams to be able to manipulate the luxury tax number by using their financial might to further hurt other teams in the league. Having the Dodgers only have $2 million count toward Otani, that would be unfair. So, everyone understands what the rules are. So, Anthony Rendone, how do you change that? Well, the present value of his contract paid over six months, which is when players get paid from April to September, is the $ 38.5 million deal. What if you spread that? What if you pay Renon over five years instead of over one year? We’ve seen it in the NBA where you take a player, you release the player, and then you spread out the remaining money and the impact it has on the salary cap. Baseball’s the same thing even though there’s no salary cap. So, what is being negotiated with the Angels is not whether Rendone will get fewer dollars than 38.5 million because he won’t. It’s whether or not they can spread that to make the hit against the team more palatable because he’s been such a waste for the entire seven years. He’s been a drag on the payroll, a drag on the competitiveness of his team, which is the longest and has the longest drought in all of baseball. I just dropped that, Cook. I don’t know if it’s right, but I really do think the Angels have the longest playoff drought in all of Major League Baseball right now. So will Rendone negotiate? What do you get in return? You get more money. You do it at a discount rate where if it’s spread out over a certain number of years that you get an interest component. You get certain benefits, whatever they may be. Maybe he’ll negotiate a 100 hours on Arty Moreno’s private plane. Whatever Rendone and his agent, and you can look up who his agent is, what they negotiate, would I do it? You bet your sweet bipsters.
#laangels #baseball #MLB
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5 comments
Do any of the Vegas or online sportsbooks have a betting line on Bippy's, sweet or otherwise?
Scott Boras is very good at his job. I could not do what he does. I am not ruthless. If I had one shot to make my fortune, I'd hire Scott Boras.
Time value of money. The bedrock of every contract.
Great video, it will be fascinating to see how this plays out, especially considering the contract that Bobby Bonilla signed which still pays him until today.
They should’ve traded him with Ohtani packaged deal