Daaaanggg - Tatis Jr

[57stratdawg]

[TWEET]1362214967651557379[/TWEET]

 

[MS-halfstep]

https://www.thescore.com/mlb/news/2120429/padres-tatis-took-cash-as-prospect-owes-part-of-fortune

Apparently he took a lump sum "investment" in exchange for a percentage of his future earnings. Ouch.

The article is a bit vague with Tatis exact deal, but says the average prospect will take $350K for 10% of future earnings. Wow, who knew?

 

[Hugh's Burner Phone]

[TWEET]1362214967651557379[/TWEET]

After taxes that's not but about $40,000/day bring home. If he's frugal and clips coupons he should be able to get by.

 

[Drebin]

[TWEET]1362214967651557379[/TWEET]

It's really two deals in one....4/40 to buy out his arbitration years and then a backloaded 10/300 with some deferred money. He won't be a huge hit to the luxury tax for about 8 years. If he is the superstar they think he will be, it's a very team friendly deal.

 

[johnson86-1]

https://www.thescore.com/mlb/news/2120429/padres-tatis-took-cash-as-prospect-owes-part-of-fortune

Apparently he took a lump sum "investment" in exchange for a percentage of his future earnings. Ouch.

The article is a bit vague with Tatis exact deal, but says the average prospect will take $350K for 10% of future earnings. Wow, who knew?

Surprised that the son of a major league player that made $18M over his career took a deal from them.

People criticizing it really don't understand what it is I don't think. It's basically a reverse insurance policy. Instead of paying a little, and then getting paid a lot if you have something catastrophic happen, you get paid a "little" (relative to the potential costs) and then you pay a lot if you have something really good happen. In a typical insurance contract, the average buyer will lose a little but the few that need it will come out way ahead (ignoring the whole catastrophic thing that caused the insurance payout). In this contract, the average buyer will gain a little (again, compared to the potential costs; not sure six figures is a little), and a few will "lose" massively (ignoring the fact that "losing" means you got a huge contract). Lots of promising prospects never make it big, so this type of insurance policy looks like a pretty good deal to me. It only costs you a lot of money when you can afford it and it gives you an injection of cash when it might be pretty important to you.