Baseball Musings
Baseball Musings
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.


Posted by David Pinto at 09:42 AM | Free Agents | TrackBack (0)
Comments

Guess he'll be able to feed his family after all.

Posted by: jvwalt at December 20, 2008 04:27 PM

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.

Posted by: CJ at December 20, 2008 05:44 PM

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.

Posted by: Rich B. at December 22, 2008 11:39 AM
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