another trade idea...

[Warpticon]

The option is for 13.5 million with a 3 mil buyout. He would have to have one heck of a year to justify $13.5 million.

 

The decision will be whether he's worth $10.5 million.

 

No, it'll be for 13.5 million. They will either pay him 13.5, or 3 million to buy out the contract.

 

3 million is sunk. it's 10.5 or 0.

 

Ah, that's what was meant. I stand corrected, then.

[Fred Hornkohl]

The option is for 13.5 million with a 3 mil buyout. He would have to have one heck of a year to justify $13.5 million.

 

The decision will be whether he's worth $10.5 million.

 

No, it'll be for 13.5 million. They will either pay him 13.5, or 3 million to buy out the contract.

 

3 million is sunk. it's 10.5 or 0.

 

That depends on what year you think the buyout is put towards.

 

It doesn't matter to what year the $3 million buyout is allocated. The decision that will have to be made is whether it's worth spending an additional 10.5 million for an additional year of Kerry Wood's services.

 

If you think the buyout is allocated towards '06, then Wood either counts 13.5 million, or nothing towards the '07 payroll. I'm pretty sure that's the decision Warpticon was referring to.

 

The decision is worth 10.5 million dollars because the 3 million is a sunk cost; i.e it cannot be avoided. Re-allocating things to different accounting periods doesn't change anything. The decision is worth $10.5 million.

[Bull]

The option is for 13.5 million with a 3 mil buyout. He would have to have one heck of a year to justify $13.5 million.

 

The decision will be whether he's worth $10.5 million.

 

No, it'll be for 13.5 million. They will either pay him 13.5, or 3 million to buy out the contract.

 

3 million is sunk. it's 10.5 or 0.

 

That depends on what year you think the buyout is put towards.

 

It doesn't matter to what year the $3 million buyout is allocated. The decision that will have to be made is whether it's worth spending an additional 10.5 million for an additional year of Kerry Wood's services.

 

If you think the buyout is allocated towards '06, then Wood either counts 13.5 million, or nothing towards the '07 payroll. I'm pretty sure that's the decision Warpticon was referring to.

 

The decision is worth 10.5 million dollars because the 3 million is a sunk cost; i.e it cannot be avoided. Re-allocating things to different accounting periods doesn't change anything. The decision is worth $10.5 million.

 

Everyone is right!

 

In actual cost it doesn't change anything, but in determining the budget, its a significant difference. I'm such a mediator...somebody shoot me.