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Machado: Update - Manny, do you officially like us?


Chicago White Sox

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1 minute ago, GreenSox said:

I'm not sure exactly what you are saying here, but at a 3% interest rate (pretty conservative)  7/300 is about the same total money as 10/330.

Only if Manny Machado quits baseball at 33 and doesn't earn a penny in those last 3 years.

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5 minutes ago, GreenSox said:

I'm not sure exactly what you are saying here, but at a 3% interest rate (pretty conservative)  7/300 is about the same total money as 10/330.

How did you calculate this?

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5 minutes ago, GreenSox said:

I'm not sure exactly what you are saying here, but at a 3% interest rate (pretty conservative)  7/300 is about the same total money as 10/330.

What that means is that the cost to the white Sox of those last 3 years is very small and it would be idiotic not to offer them.

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3 minutes ago, Greek-konerko said:

Omg cant take it this anymore. I stay awake at nights here in greece waiting machado /harper news. This has to come to an end. I go to work everyday sleepless?

You need get some sleep bud Harper won't sign til feb and Machado maybe not Jan 15.

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10 minutes ago, GreenSox said:

Incorrectly; on recalculation, around a 5% rate equates the two.
The risk-free rate will likely be below 5%; still there is other risk in waiting for your money

Again, only if Machado doesn't use those open 3 years on the end of the deal to earn any money.  If he earns something those three years, the equation skews.

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Just now, southsider2k5 said:

Again, only if Machado doesn't use those open 3 years on the end of the deal to earn any money.  If he earns something those three years, the equation skews.

If it skews, it skews in favor of the 7/300 over the 10/330.  The present value of the  income from the extra 3 years can be added to the 7/300.

If a player is going to put his money into CDs, then 10/330 is better. If he's a decent investor, 7/300 is no worse, and probably better.   You get your money earlier, invest it and earn more in investment returns than the present value of the extra $30 million.

 

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10 minutes ago, GreenSox said:

If it skews, it skews in favor of the 7/300 over the 10/330.  The present value of the  income from the extra 3 years can be added to the 7/300.

If a player is going to put his money into CDs, then 10/330 is better. If he's a decent investor, 7/300 is no worse, and probably better.   You get your money earlier, invest it and earn more in investment returns than the present value of the extra $30 million.

 

At 3% compounding 7/300 turns into $327.8 million by year 10.  If the player earns any money at all in those 3 years it weights towards the 7/300 more heavily.

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