Bmurph
F the Houston Astros
Scherzer will receive $210MM for seven years of work, but the contract has an unusual structure, with Scherzer receiving $15MM per season for the next 14 years, Ken Rosenthal of FOX Sports tweets. That means the Nationals will be paying Scherzer through 2028. Also, Yahoo! Sports’ Jeff Passan tweets that the deal includes a $50MM signing bonus that will be paid out “over a portion of time” for tax reasons. That bonus would, presumably, be included in the $210MM total. As Passan notes, the deferral makes the contract worth about $185MM in present-day dollars. (And MLB will calculate the value of the contract in present-day dollars for luxury-tax purposes, Rosenthal tweets.) The structure of the contract and Washington DC tax laws could ultimately save Scherzer over $20MM, however, Passan reports. Scherzer’s deferral is, obviously, the largest one in MLB contract history, leaving Bobby Bonilla and the Mets’ lengthy $29.8MM deferral in the dust.
This is how ludicrous MLB contracts have gotten. Crazy deferral, 50 million signing bonus? 2028 payoff
This is how ludicrous MLB contracts have gotten. Crazy deferral, 50 million signing bonus? 2028 payoff