So, What’s Really Going On Here?
February 27, 2009 at 8:04 am | Posted in Manny Ramirez | 18 CommentsJust when you think this story couldn’t possibly get any weirder (and more annoying)…
1) The Offer. On Wednesday, as you surely remember, the Dodgers put forth offer #4 to Manny Ramirez: two years at $45 million ($25m in 2009, $20m in 2010), with 2010 being a player option. This seemed like a great solution to this problem for both sides, because while the Dodgers were clearly overpaying, they kept it down to just two years (maybe even just one), and Manny gets an increase over his Boston options plus the ability to walk if he thinks he can get more elsewhere. I was in favor of it, Tony Jackson said “This is a good deal for both sides”, and ESPN’s Jayson Stark said that this is the best offer that Manny’s going to get. Plus, Scott Boras had made the request that year 2 be a player option, so why would he reject an offer he’s helping to craft? This was going to be the one that got it done.
2) The Rejection.
Apparently, a man who is having trouble finding work in a down economy has decided, yet again and with the help of his ever-so-earnest agent, that playing baseball for a year for $25 million or two years for $45 million is somehow beneath him.
3) MSTI’s Initial Reaction Upon Groggily Seeing the Email From Josh Rawitch This Morning Noting Manny Had Declined the Offer. “What! Are you f*#%ing kidding me! What the f*#^ more does he want! There’s no other team in the bidding! This is the worst economy in decades and being offered five times what Bobby Abreu got isn’t enough!? F*#&!! I’m so sick of Manny, just screw him and move on, but oh wait, we can’t because Abreu and Adam Dunn are both gone, and if Juan Pierre is playing left field every day I’m going to kill myself. And, Boras had requested the player option and he got it! So why is he rejecting the offer now! I can’t take this!”
And that, friends, is why I do not blog before coffee.
4) Frank McCourt’s Attempt at a Public Bitch Slap.
Dodgers press release, from Dodger Thoughts:
“We love Manny Ramirez,” said Dodgers Owner Frank McCourt, “And we want Manny back, but we feel we are negotiating against ourselves. When his agent finds those ‘serious offers’ from other clubs, we’ll be happy to re-start the negotiations.
“Even with an economy that has substantially eroded since last November, out of respect for Manny and his talents, we actually improved our offer.
“So now, we start from scratch.”
The “serious offers” quip is obviously referring to Boras’ comment after the initial 2/$45m offer that he’d be looking forward to “serious offers” from other clubs. It’s pretty rare that you see such a public airing of dirty laundry here, but with Boras being so stubborn despite the generous offer in a lousy economy, you have to feel where McCourt is coming from, right?
Um, right?
5) Hold On, What Now?
Reporting from Scottsdale, Ariz. — The Dodgers offered Manny Ramirez a two-year, $45-million contract that included a player option to void the second year.
Ramirez’s agent, Scott Boras, countered by proposing a two-year, $45-million contract that included a player option to void the second year.
Kudos to Hernandez here, because it’s not often I read the first two lines of a newspaper article and have my head explode like the guy from “Scanners”. But what in the hell would make Boras reject an offer he helped to craft – and then respond with the same offer? Well, as Hernandez tells us, it’s not the same:
What Colletti didn’t mention, the source said, is that most of Ramirez’s salary would’ve been deferred. Two other sources previously told The Times that the proposed deal included deferred payments.
Under the terms of the contract that Ramirez was offered by the Dodgers on Wednesday, he would’ve received $10 million this year. And by exercising the option for the second year, he would’ve received $10 million in 2010.
Ramirez, who turns 37 in May, would’ve 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.
Well, there’s that. So if I’m reading this correctly, Boras has actually come down off his crazy 4/$108m demands, and he’s even accepted that three years are unlikely, and he’s willing to accept the Dodger terms of 2/$45m. He even offered that to you, Mr. McCourt. You’ve beaten Scott Boras at his own game, but now you’re trying to turn it into a rout by demanding he accept some of the money later? Look, I know we’re talking about figures that are silly money for most people, but for god’s sake, pay the man! Deferring that much money at zero interest means that the value of the deal isn’t actually $45 million – it’s some amount less. (How much? I don’t know, I’m not freaking Alan Greenspan over here. It’s less.)
And after I actually backed your strongly worded press release. You know what? I hate both sides right now.
6) As Usual, Bill Plaschke Has His Head Up His Ass.
This doesn’t really add to the Boras/McCourt dynamic, but it is fun to see that Plaschke’s woefully behind the curve of the ”deferred payment” story, even when a reporter at his own paper has the information:
This week, by every stretch of the wildest imagination, the Dodgers made Manny Ramirez a no-lose proposition.
By rejecting it Thursday, Ramirez has officially lost it.
He’s lost his dignity. He’s lost his perspective. He’s lost his marbles.
7) So, Now What (AKA, Now There’s a Deadline?)
Well, Barry Bloom is reporting that Boras says negotiations will continue today, but that there’s a 12pm noon Pacific deadline, which is approximately four hours from the time I hit ‘submit’ on this post. Right. Like they’re really going to cut off all contact in four hours – the Dodgers aren’t going to shut the door on the power bat they desperately need with no better options out there, and Boras isn’t going to cut off his only confirmed bidder.
Clearly, this isn’t the end of this story for today. But while I still believe that Manny ends up back in LA sooner or later, he’s no longer the only one looking greedy. Everyone attached to this debacle is looking bad right now.
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The financial difference between $45 million paid as $25M/$20M and $45 million paid as $10M/$10M/$10M/$10M/$5M is between $2 million and $5 million, depending on what type of return Manny would expect to receive on his payments (for example, a return of 3% per year would yield a difference of $1.6 million and a return of 10% per year would yield a difference of $4.4 million).
Comment by Frank— February 27, 2009 #
The final deal will be exactly the same as the rejected deal in November
2 years — $45MM
Comment by Kbrooks2— February 27, 2009 #
What is McCourt’s deal with Paying over time? Sure you pay less now, but then you still have to pay later. If he pays it all not he will not be blocked by it later when he needs the cash to sign other people in years to come.
Comment by Gillbert— February 27, 2009 #
It’s all about cash flow, Gillbert. When you have cash, you have much more earning potential. If he pays Manny off in installments, he’ll be able to use the money he’s not paying right away to make more money. If he pays it all in 2009 (and then in 2010 if Manny picks up the option), Frank won’t be able to use that extra cash to invest.
Comment by Grant— February 27, 2009 #
1 – Thanks for the info. Also, and I can’t believe this is something I’d ever have to discuss on this blog, with Obama likely to raise the taxes on the megarich next year, Manny would also have to pay more taxes on money paid after that.
Comment by Mike Scioscia's tragic illness— February 27, 2009 #
Let’s see McCourt and Colletti’s true colors now:
http://sportsillustrated.cnn.com/2009/baseball/mlb/02/27/manny.dodgers/index.html?eref=T1
Comment by Swamp Donkeys Anonymous— February 27, 2009 #
what is wrong with him? if i was the dodgers owner i would of gave up after offering him just 25 million he really needs to get of himself.
Comment by joey mo— February 27, 2009 #
Apparently the devil, I mean Boras, was the one who first asked for deferred payment so that the total value of the deal could be higher.
Comment by Meee— February 27, 2009 #
This is just a huge clusterf***. Supposedly Boras asked for $55 million over 2 years now. Everyone involved needs to be shot.
Comment by Swamp Donkeys Anonymous— February 27, 2009 #
To be honest, today has been one f&^(ed day. First off, I, like you Mike, was ready to put a hit on Manny and Boras. Two hours later, I wanted to tie Jamie McCourt to the back of the wife’s golf cart and drag her over sagebrush and barbed wire. Two hours later, I am ready go back to plan one. An hour after that, I am ready to blame my wife for whole thing and she understands squat about baseball.
Tomorrow better be a good day, or there may be cat shortage around this house. Don’t even ask me about Sunday, I might be building letter bombs.
Comment by grabarkewitz— February 27, 2009 #
This story just seems to keep getting uglier, with all of the personal attacks in the press now between Boars & McCourt.
Comment by Mike Scioscia's tragic illness— February 28, 2009 #
Talk about a bizarre roller coaster. It’s embarrassing as a fan. You should hear how the Giants fans are all excited about their changes since this has become such a fiasco.
Hey MSTI – I gave you an idea for a blog post:
http://sfdodgerfan.com/the-manny-saga-continuesare-we-having-fun-yet/
Scott
Comment by SFdodgerfan— February 28, 2009 #
WTF? Why don’t they just go over to Bernanke and get some cash from him. The interest rate is like 0.000001%. We are being played.
Comment by Dodger Dude— February 28, 2009 #
Let them be excited. I get to listen to their baseless claims on a daily basis up here in NoCal and it is always more fun to pop their balloons and kick them while they are down. They are still going to be lucky to finish at .500 and soon enough Sabean will do something hugely stupid (like trading Cain or rushing one of their young arms) and it will be like the good old days of the late seventies and early eighties, all over again.
Comment by grabarkewitz— March 1, 2009 #
I know this is off topic but Jim Bowden Resigns! Sing it with me – JIM BOWDEN RESIGNS! Those have to be the three most beautiful words after Juan Pierre Retires.
Comment by grabarkewitz— March 1, 2009 #
12 – it’s more than you’d probably think, he had a bunch of guys on the 04 and 07 Red Sox.
15 – Hooray! I’m pretty happy for Nats fans. Except that now it bumps Colletti one spot lower to “worst GM”.
Comment by Mike Scioscia's tragic illness— March 1, 2009 #
Colletti needs tobe gotten rid of.
As for this deal– If boras made the request and then his client told him no he is an even bigger idiot than I thought I completely understand why McCourt feels the way he does when Boras put deferred money on the table.
Fact is we’ve gotten an idiot GM and a jerk Agent negotiating a deal. The stupidity will continue until some adult steps in.
Comment by EC Dodger— March 1, 2009 #
I can still think of four or five GMs who are worse than Neddie. Minaya, Wade, Sabean, Ricciardi and Frank Wren come to mind pretty quickly. Wren could be moving down pretty quickly, he gave $15 million per for four years to a number 2/3 starter. Brilliant!
Comment by grabarkewitz— March 1, 2009 #