Posted by bfkfraser on 7/30/2012 5:58:00 PM (view original):
Posted by jclarkbaker on 7/30/2012 1:13:00 PM (view original):
I hope you guys all hire accountants. Because they have an understanding of assets, liabilities and equity.
As an accountant, I will assure you this is less about accounting and more about keeping the competitive balance. When you set your $185M budget, you made choices. These choices gave you advantages in some areas and disadvantages in others based upon your team makeup, strategy, and direction. When you send money to another coach, you give said coach the ability to alleviate some of his/her disadvantages by giving them money over the 185M. This is not only an advantage over your team, but all of the 30 other teams not involved. It allows a coach to shortfall an area of his/her budget if he/she expects to get cash later to make up for it. Hence, people saying 190>185. Not surprisingly, many of these coaches have learned this already from experience.
I will cast a veto on any trade that includes cash in excess of the difference in salaries. If the cash is less than the difference in salaries, then I may or may not cast a veto vote depending on various circumstances including, but not limited to, the time of season, and the amount of cash
When you trade someone a ML SP, you give that coach the ability to alleviate his disadvantage in ML SP. This is not only an advantage over your team, but all 30 other teams. It allows a coach to shortfall his/her ML starting pitching if he/she expects to get a SP later to make up for it.
Wow, that was easy.
Now, explain what advantage there is to getting $5m in cash, as opposed to cutting $5m in liabilities.
7/30/2012 9:56 PM (edited)