This makes no sense. Boras wants to test the FA to see how much Beltran is worth. So how is he, and this is Boras we are talking about, going to throw out a number, when he doesn't know what the number should be??
I had a feeling you would be responding! I was trying to emulate you when I added the IMO at the end of that sentence.
I didn't see an "IMO" and I still don't. Too bad its was your assumption and not based on fact. Kind of destroyed your whole response didn't it?
C'mon.... are you kidding me? Boras knows the market. This would be his opportunity to get a premium on top of his premium!
Too funny!!! Not a very good argument IMO . Drayton signed those two to a contract right after he purchased the team. He understood that he had to bring in some contracts before he bought the team. The way I look at it... you can add those two contracts to the purchase price. He purchased the team at a discount, he seized the opportunity!
The season before ARod was a FA (a Borad client BTW), no one was talking about 10 years and $250 MILL. No one. When that came out, it was a shock to everyone, and that probably included Boras. Hes not going to make the mistake of accepting a $15 MIL per year contract from the Astros if he thinks a team might be willing to offer $20 MIL per.
The IMO was based on your opinion of Dennis' post. It had nothing to do with your declaration that McLane bought the team at a discount and you know it.
Whatever! I would try to explain what I was trying to say but it won't get me anywhere. Believe what you want!
I believe you were throwing out a fallacy in an attempt to refute evidence that went against your original premise.
Not a very good argument IMO! (remind you of anyone) That contract changed the landscape of baseball. That contract was for arguably the most marketable player in the history of baseball. You're not being truthful if you think that Boras wouldn't take a $15 million offer to Carlos! That would be the prudent thing to do.
What? OK, I guess I have to explain everything to you. Drayton thought the team was worth more than what he paid for it. Hence, the discount term. He discounted the terminal cash flow! Ever heard that term? Have you ever purchased anything for more than what you thought it was worth? Not possible! It can't happen!!!!
And you're not being truthful if you think a team like the Yankees would have a problem paying a 40 HR, 120 RBI and 30 SB guy like Beltran more than $15 MIL +. Hence, reason for Boras to wait for the market to get into a bidding war, like they did for A-Rod. Hell, they are paying Giambi $17 MIL per season and Bernie Williams $14 per season (and that was based on 1999 MLB market).
Go back and read the post that started our jabs. I said BORAS throws out a number.. I didn't say Drayton. So let's say Boras throws out 25 and Drayton say yes. Would Boras ok the deal? BOBREK, I don't remember Boras saying that to the Astros but if you say so then OK. But, if Drayton asks Boras to throw out a number and Drayton matches it... Do you the think deal will get done? The truth is.. Drayton could get it done if he wanted to.... Again, I don't care if he signs or doesn't sign Beltran to a deal. Just don't lie about losing money!
See, this is where you are totally unfair to Drayton, because a) Yes, we all know Boras would accept a deal like that and at the same time b) We all know Drayton would never agree to terms like that. This is just fantasy stuff on your part to try and prove a point that can't be proven and is in direct conflict with what Beltran's agent has stated. A middle market owner like Drayton is not going to throw out ridiculous money before the market is set, only to end up grossly over-paying for a player's service and Broas is not going to accept an offer that might be less than the market ends up paying after the season is over. This is why free agency happens. Drayton will never agree to pay a player more than he thinks that player will bring on the open market just to secure his services early. Like you just said:
Geez. You are acting like Drayton purchased a liquid asset or realized immediate dividends. Yet, he did neither. So how in the world you can include Drabeck and Swindell's contracts, in theory, as part of the purchase price of the team is beyond my comprehension.
You're funny. I gave Bobrek a scenario to refute the "truth" Bobrek was proposing! In my scenario, Boras would agree to it. Hence making his "truth" false. The reason for such a scenario is simple. To show that there are reasons why agents say what they say. The truth is, (like you said) Boras knows Drayton will not throw out a number like that. (You think that is being unfair?) That is why Scott NEEDS to test the market. So, Boras doesn't even need to make a statement like the one BOBREK mentioned Boras made to both the Astros to the Royals. It makes sense to say that to KC because maybe KC could angle a "stay with one team" discount. He put an end to that before it started... He doesn't have to say that here... that is understood here!
I don't think you're quite familiar with the concept of "bidding war." No matter what the opening number is, it is highly likely that it will be topped by the Red Sox or Yankees in the open market. Negotiations START with the number Boras throws out, not ENDS. Beltran will wait to see what the market will bear, and rightfully so. The only way Beltran will sign NOW is if Drayton offers some ridiculous amount, like $25 million a year. Sadly enough, even then, I don't think Boras will take it. He would be shrewd enough to leak that offer to other teams (or the media) and get EVEN MORE money for his client by using Drayton's offer as a starting bid. Hell, that's what I would do...
Don't ask me any more questions after this one? I'm tired of your BS questions. I will try to explain in a way that even you can understand. I am tired of your attacks.... I don't want to see a response like.. Bad analogy Bigboy IMO... OK!!!!! I just bought a piece of property that used to be a restaurant. I want to turn this restaurant into a club. In my model, I do NPV calculations. As a small part of a calculations, I understand that there will be some cost to remodel (remodel costs=Drabek and Swindell's) the restaurant into a club. I figure out what those expenses are and then include that in my initial investment. Then I go out and figure out what the discount rate, growth rate and cash flows are (based on 5 years for me in this case). I use the NPV formula to calculate the NPV. That NPV has to be a positive number for me to agree to the deal. If I have more than one project/option to invest in, then the highest NPV wins. Understand?
