December 20, 2008
Unusual Contract
CC Sabathia will be paid all year, not just during the baseball season:
While most players are paid semi-monthly during the six months of the regular season, Sabathia's salary will be paid in semi-monthly instalments over all 12 months of the year. That means he will have received six payments of $583,333 before the opener.
I'm not sure if this was CC idea or the Yankees. I can see where this might help the Yankees with cash flow, but mostly, CC gets to earn more interest on his money.
Guess he'll be able to feed his family after all.
Is it really much of a benefit to Sabbathia? He gets 3 months of payments ealier than normal and he gets 3 months of payments later than normal. That seems like pretty much a wash to me.
But I could see that it might have cash flow benefits for the Yankees.
Don't forget Obama's promised tax increase on income over $200,000. Seems like incrementally front-loading the contract pushes more income out of the higher tax bracket, irrespective of whether the tax increase is imposed in 2009, or phased out after 2010.