I'm strictly referring to drafted prospects.

Baseball is probably the best place to look to determine market values for prospects because the rookie signing bonuses are not capped, and teams regularly pass on top prospects (even though they could draft them) because they can't afford the signing bonuses.

It's probably as close to pure free market as you'll get in pro sports.

If the market determines that Stephen Strasburg, probably the most hyped prospect of all time, is worth a 7.5 million dollar bonus in a league with revenues over twice as great as the NHL, why is Ryan Strome worth DiPietro's buy-out?

It's simply a ludicrous valuation.
- Leeman4Gilmour

You need to compare apples to apples.... signing bonuses are signing bonuses

Paying for a players rights are paying for a players rights.....

I'd love to see them squeeze some of these broke teams myself, but I'd shoot a lot higher than Strome.

My guess is that an inflation-adjusted, present value calculation of DiPi's buy-out is something like 14-15 million or so.

That's roughly twice as much as the largest signing bonus in the history of the MLB.
- Leeman4Gilmour

I do a bit of this stuff and you're probably really close ...this poopty economy is great at keeping my variable rate mortgage low, my savings account from growing, and present value discounts pretty humble.

15 million stuck into a mattress today is a big number but it's paid out over 16 years. I'm skeptical teams will do it but not because of the money - instead because I think the league would be all over this with their competitive balance rules.

you really dont know how the buyout works do you?

if not bought out.. he is signed for 8 more years and is owed 36million dollars

if he is bought out he is owed 2/3rds that amount over twice the length of the contract

that means he would get paid a mere 1.5million (off cap) for 16 years

for a company who is projected to make lets say 20-25BILLION in that amount of time.. its not a big loss. not even close.
- Dozzer

I don't know what you think I'm not getting.

There are inflation adjusted calculators you can use to determine what 24 million over 16 years is worth in today's dollars.

Buying out DiPietro over 16 years is worth the equivalent of writing a 15 million dollar cheque right now.

The question is: Is any prospect worth 15 million 2013 dollars? Considering I've never seen any North American sports league pay that for a rookie, my guess would be no.

Punching in a generous 5%, I'm getting just over $16 milly.

For the right player, MLSEL would laugh all the way to the bar at Real Sports.
- Atomic Wedgie

Too generous today, no? 3% is what I'm being told to use.

I do a bit of this stuff and you're probably really close ...this poopty economy is great at keeping my variable rate mortgage low, my savings account from growing, and present value discounts pretty humble.

15 million stuck into a mattress today is a big number but it's paid out over 16 years. I'm skeptical teams will do it but not because of the money - instead because I think the league would be all over this with their competitive balance rules.
- The Law

My wife and kids take care of that for me.

Not sure how patio lounge chairs can cost more than leather living room lounge chairs...

You need to compare apples to apples.... signing bonuses are signing bonuses

Paying for a players rights are paying for a players rights.....
- jribout

The salient point is this: no team in MLB history has ever felt it worthwhile to spend more than the record 7.5 million dollar signing bonus on any prospect.

The Yankees. The Red Sox. The Phillies. These are teams that dwarf even the Toronto Maple Leafs. They could buy any prospect they want, yet not one of them has spent more than 7.5 million bucks on an untested prospect.

Too generous today, no? 3% is what I'm being told to use.
- The Law

$18.8 million.

The salient point is this: no team in MLB history has ever felt it worthwhile to spend more than the record 7.5 million dollar signing bonus on any prospect.

The Yankees. The Red Sox. The Phillies. These are teams that dwarf even the Toronto Maple Leafs. They could buy any prospect they want, yet not one of them has spent more than 7.5 million bucks on an untested prospect.
- Leeman4Gilmour

But they've easily spent that on acquiring a player - they regularly send stoopid amounts of money to Japanese teams.

Edit:

Since the Red Sox bid $51.1 million for the right to negotiate with Matsuzaka, if the reported figures are accurate, they will end up paying at least $103.1 million over the next six seasons to have him. Matsuzaka, a 26-year-old right-hander, is considered one of the elite pitchers in the world and could surge to the top of Boston’s starting rotation, a rotation that includes Curt Schilling, a three-time 20-game winner, and Josh Beckett, a former World Series most valuable player.

http://www.nytimes.com/20...17c7b470c&ei=5087%0A&_r=0

My wife and kids take care of that for me.

Not sure how patio lounge chairs can cost more than leather living room lounge chairs...
- Atomic Wedgie

Lol ...I live "there" too. Who ever decided that new there should be "new colours" each year is an bumhole - and a retail genious.

I don't know what you think I'm not getting.

There are inflation adjusted calculators you can use to determine what 24 million over 16 years is worth in today's dollars.

Buying out DiPietro over 16 years is worth the equivalent of writing a 15 million dollar cheque right now.

The question is: Is any prospect worth 15 million 2013 dollars? Considering I've never seen any North American sports league pay that for a rookie, my guess would be no.
- Leeman4Gilmour

ahhh ok.. i see what you are saying now

the answer? yes.. i do.

considering what that money is for the MLSE.. very much so I do.. it would barely make a dent in their portfolio over that time.. it would be more akin to a bug hitting their windshield moreso than a dent in the car

But they've easily spent that on acquiring a player - they regularly send stoopid amounts of money to Japanese teams.
- Atomic Wedgie

The players they buy from Japan are pros, though, I thought.

It seems to me that they are somewhat more of a sure thing than drafted amateurs.

Maybe this Ryan Strome kid is the best thing since sliced bread, but I don't get the hype. I think people have just identified him as the Isles best prospect and decided they want him.

making trades with fans, involving ownership money isn't gonna get a realistic response.. and most likely it'll be a wildly unrealistic offer. As fans, we don't care about ownership's money. It's easy for us to say- "here's 24 million dollars!"... and for them to say "I don't care!".

you do realize the 24 million would be paid out over the course of 16 years right?

1.5million per season is 1% of the concession stand take for MLSE

you need to look at it in perspective.. to a 1 billion dollar per annum company.. 1.5million is 0.0015% of the income.
- Dozzer

not if they use one of their 2 freebees buyouts..

$18.8 million.
- Atomic Wedgie

I think you're doing interest .....PVC uses a discount %. 15 milliion today is the same as 1.5/yr for 16 years (3% discount).

Really this is about spending money to make the team better. I think Rogers/Bell would do it - if they thought Strome was worth it - but I think the league would find a way to interfere.

My wife and kids take care of that for me.

Not sure how patio lounge chairs can cost more than leather living room lounge chairs...
- Atomic Wedgie

I still go into a temporary coma when the Visa and MC bills come then I snap out of it and just keep muttering, why, why, why...

not if they use one of their 2 freebees buyouts..
- dmnted

they still have to pay the guy

I think you're doing interest .....PVC uses a discount %. 15 milliion today is the same as 1.5/yr for 16 years (3% discount).

Really this is about spending money to make the team better. I think Rogers/Bell would do it - if they thought Strome was worth it - but I think the league would find a way to interfere.
- The Law

I'm really just plugging numbers into a calculator that google dredged up.

making trades with fans, involving ownership money isn't gonna get a realistic response.. and most likely it'll be a wildly unrealistic offer. As fans, we don't care about ownership's money. It's easy for us to say- "here's 24 million dollars!"... and for them to say "I don't care!".
- Feeling Glucky?

Absolutely - nobody has any idea whether MLSE would actually entertain this ....or better yet, whether Wang would.

But we can still banter about the merits.

Frankly I'm tired of hearing about you turning down BJ's ....

I still go into a temporary coma when the Visa and MC bills come then I snap out of it and just keep muttering, why, why, why...
- LeafMan

I have a Zombie American Express balance. It just won't die.

Every time I get that thing down to zero, it just re-animates and pops right up again.

I still go into a temporary coma when the Visa and MC bills come then I snap out of it and just keep muttering, why, why, why...
- LeafMan

i have a solution for this

let the wife take care of it

i dont even look at my pay anymore.. just cash the cheque.. tell the gf.. she then tells me about 20 min later how much i have to spend

its a wonderful thing.. because she makes sure i have more than enough money to have a few beers and buy whatever i need.

so either i make more than i thought or she is super good with money.. i am guessing its the latter

I still go into a temporary coma when the Visa and MC bills come then I snap out of it and just keep muttering, why, why, why...
- LeafMan

And yet I effing agonize about making a $150 purchase of new sunglasses.

Which I still haven't bought, by the way...

What about Briere?

Anyone?

Anyone?
- Atomic Wedgie

I would. Vet presence who knows how to win, you can slot him around and he will put up roughly 50 pts. A solid guy to have for the stretch, if he gets hurt we slot up someone like colborne. Seems like a no lose to me.

As for Strome, I guess I was watching a different guy. Kadri did more as an 18 year old with less and he developed for 3 years... So an about to be NHL ready Jake Gardiner for a kid who wont be on the Leafs next season is a weak trade. No chance I do Gards for Strome straight up, let alone adding.

ahhh ok.. i see what you are saying now

the answer? yes.. i do.

considering what that money is for the MLSE.. very much so I do.. it would barely make a dent in their portfolio over that time.. it would be more akin to a bug hitting their windshield moreso than a dent in the car
- Dozzer

Can we talk G.O.T. yet?

i have a solution for this

let the wife take care of it

i dont even look at my pay anymore.. just cash the cheque.. tell the gf.. she then tells me about 20 min later how much i have to spend

its a wonderful thing.. because she makes sure i have more than enough money to have a few beers and buy whatever i need.

so either i make more than i thought or she is super good with money.. i am guessing its the latter
- Dozzer

That "solution" was activated 24 hours after the "I Do's" were made.

Can we talk G.O.T. yet?
- UsernameUnknown

Why not wait until your Dungeons and Dragons meeting tonight?

Piss off, nerd.