Very interesting tidbit here...

Enrique Bennett just signed for a $1,000,000 signing bonus plus a $7,650 minor league contract. Total value $1,007,650.

I had been leading on him for many many cycles with a $1,050,000 bid and minor league contract (so total value of $1,057,650), but it was close enough that he hadn't signed on the dotted line.

This afternoon I decided to try an experiment of sorts, and I withdrew the leading offer and replaced it with a ML contract of three years for at the league minimum of $327,000 plus $51,000 in signing bonus (total value of $1,032,000).

The same cycle I offered that is the cycle that he signed for $1,007,650 total value with another team.

My first thought it that he saw my offer as a 3-year deal worth $1,032,000 so only $344,000 per season compared to the $1,007,650 per season he signed for, but that can't be right. I know this because I've signed Int'l guys to ML contracts before when I know I wasn't offering 3x the signing bonus of the #2 bidder.

So what do you guys think? Does the ML contract and salary attached add no value to the contract?

I find that a bit difficult to believe, but don't have another explanation at the moment.

It's possible he had other reasons to sign with the other team. WiS has said repeatedly that things like team record play a small role in signing. I imagine that role can't be smaller than at least $25,000.

Well they said that with FAs, not necessarily IFAs...

Quote: Originally posted by prezuiwf on 4/23/2010It's possible he had other reasons to sign with the other team. WiS has said repeatedly that things like team record play a small role in signing. I imagine that role can't be smaller than at least $25,000.

We're still very early in the season, but I lead my division at every level that has started play. The team he signed with is in my league, but in another division, and has a better record than I do at the High A level (13-1 vs 10-4) and the AAA level (12-2 vs 10-4). I have a better record at the Low A level (10-4 vs 9-5 ), the AA level (11-3 vs 9-5), and the ML level (12-3 vs 8-7). So my record is better at the lowest level (where a rookie might start) and overall (if you count every win and loss equally).

Here is the franchise profile of the team he signed with.
Columbus Storm Troopers.

Here is the franchise profile of my team.
Minnesota Mystique

Generally speaking, his pitching coaches (across levels) seem to have slightly higher pitching IQs but much lower Patience ratings. Perhaps that played a role?

Players often automatically reject contracts for longer terms than requested, regardless of $$. It's never made sense to me, but it's always been that way.

zbrent,

in simple economic terms 327K is worth more this year than next year and 2 years from now...it's possible that WIS has players (rightly) discount years 2 and 3 of a contract and beyond when considering a deal

it wouldn't have to be much of a discount for you to have been beaten by the other guy since your total value was only 25K more than his...

hypothetically if season 2 is valued at a 5% discount and season 3 is at 10% your contract would be worth less. these make believe numbers would knock about 50K off the value of your contract, not much but enough here to take you out of the lead

Quote: Originally posted by schuyler101 on 4/24/2010zbrent,

in simple economic terms 327K is worth more this year than next year and 2 years from now...it's possible that WIS has players (rightly) discount years 2 and 3 of a contract and beyond when considering a deal

it wouldn't have to be much of a discount for you to have been beaten by the other guy since your total value was only 25K more than his...

hypothetically if season 2 is valued at a 5% discount and season 3 is at 10% your contract would be worth less. these make believe numbers would knock about 50K off the value of your contract, not much but enough here to take you out of the lead

From an economics point of view, discounting the value of payments due in future years absolutely makes sense. In fact, it's something I'd love to see as part of HBD. That said, I simply don't think it exists right now, because I can think of no good reason to have it exist in Int'l FA dealings, but *not* in FA dealings (where I know it doesn't exist currently).

Quote: Originally posted by zbrent716 on 4/24/2010

Quote: Originally posted by schuyler101 on 4/24/2010zbrent,
in simple economic terms 327K is worth more this year than next year and 2 years from now...it's possible that WIS has players (rightly) discount years 2 and 3 of a contract and beyond when considering a deal

it wouldn't have to be much of a discount for you to have been beaten by the other guy since your total value was only 25K more than his...

hypothetically if season 2 is valued at a 5% discount and season 3 is at 10% your contract would be worth less. these make believe numbers would knock about 50K off the value of your contract, not much but enough here to take you out of the lead

From an economics point of view, discounting the value of payments due in future years absolutely makes sense. In fact, it's something I'd love to see as part of HBD. That said, I simply don't think it exists right now, because I can think of no good reason to have it exist in Int'l FA dealings, but *not* in FA dealings (where I know it doesn't exist currently).

It also has 0 place in HBD since fixed budgets give you a seasonal change of $0 dollars from season to season, no inflation and no interest. That means a $ in season 1 is worth as much as a $ in season 9999999999. So there is no place for it because fixed budgets and fixed economies completely negate the need for it.

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I think the other factors talked about here only apply if multiple teams offer the exact same amount of money. As in real life, players care about money first priority.

i understand that in the world of HBD there is no inflation

i'm just fishing for a possible explanation for a curious thing, it's not out of the realm of possibility that HBD would put something like this in place despite inflation not being a factor