Brewers Release

[Brewers GM]

CI Pujols, Albert, $27.5m (2015)
(2013 - 75%): 20.625 ~ $20.5M
(2014 - 50%): 13.75 ~ $14.0M
(2015 - 25%): 6.875 ~ $7.0M

Total to buy him out entirely in 2013 is $41.5M, minus the $27.5M he's already being paid.  That leaves another $14.0M to cover everything.  Brewers currently have $9.5M available, requiring another $4.5M.

SP Blanton, Joe, $3.5m (2015)
(2013 - 75%): 2.625 ~ $2.5M
(2014 - 50%): 1.75 ~ $2.0M
(2015 - 25%): 0.875 ~ $1.0M
Savings in 2013: $1.0M

SP Happ, J.A, $2.5m (2015)
(2013 - 75%): 1.875 ~ $2.0M
(2014 - 50%): 1.25 ~ $1.5M
(2015 - 25%): 0.625 ~ $0.5M
Savings in 2013: $0.5M

MI Tejeda, Ruben, $0.5m (P-2013)
P Ortiz, Joe, $0.5m (P-n/a)

If I've done this correctly, that leaves $1.0M as a cap hit for each of 2014 and 2015 ($2.0M still unpaid on Pujols' contract) and zero cap space.

To make room for EDR draftees, we promote to 40-man roster:
OF Choice, Michael, $0.5m (P-n/a)
SP Zimmer, Kyle, $0.5m (P-n/a)

And additionally cut from 40-man roster to make the cap room:
OF Martinez, Fernando, $0.5m (P-2015)
OF Taylor, Michael, $0.5m (P-2015)

Cut from EDR:
SP Lovegrove, Kieran, $0.5m (P-n/a)

[shooter47]

CI Pujols, Albert, $27.5m (2015)
(2013 - 75%): 20.625 ~ $20.5M
(2014 - 50%): 13.75 ~ $14.0M
(2015 - 25%): 6.875 ~ $7.0M

Total to buy him out entirely in 2013 is $41.5M, minus the $27.5M he's already being paid.  That leaves another $14.0M to cover everything.  Brewers currently have $9.5M available, requiring another $4.5M.

SP Blanton, Joe, $3.5m (2015)
(2013 - 75%): 2.625 ~ $2.5M
(2014 - 50%): 1.75 ~ $2.0M
(2015 - 25%): 0.875 ~ $1.0M
Savings in 2013: $1.0M

SP Happ, J.A, $2.5m (2015)
(2013 - 75%): 1.875 ~ $2.0M
(2014 - 50%): 1.25 ~ $1.5M
(2015 - 25%): 0.625 ~ $0.5M
Savings in 2013: $0.5M

MI Tejeda, Ruben, $0.5m (P-2013)
P Ortiz, Joe, $0.5m (P-n/a)

If I've done this correctly, that leaves $1.0M as a cap hit for each of 2014 and 2015 ($2.0M still unpaid on Pujols' contract) and zero cap space.

To make room for EDR draftees, we promote to 40-man roster:
OF Choice, Michael, $0.5m (P-n/a)
SP Zimmer, Kyle, $0.5m (P-n/a)

And additionally cut from 40-man roster to make the cap room:
OF Martinez, Fernando, $0.5m (P-2015)
OF Taylor, Michael, $0.5m (P-2015)

Cut from EDR:
SP Lovegrove, Kieran, $0.5m (P-n/a)

Contract Buyout
Money owed to a player released under contract may be financed through a contract buyout.  This can be done by adding up the total remaining contract amount, multiplying it by 1.1 rounded up to the nearest $500k.  This amount may be divided up any way you choose as long as the number of years is not more than what it was before AND that no salary owed in any year is more than an amount in a prior year.  I will use some current examples to highlight the effects of the buyout and its 10% tax.

The Pujols drop and buyout would be subject to the 10% buyout tax.

CI Pujols, Albert, $27.5m (2015)
(2013 - 75%): 20.625 ~ $20.5M
(2014 - 50%): 13.75 ~ $14.0M
(2015 - 25%): 6.875 ~ $7.0M

Total to buy him out entirely in 2013 is $41.5*1.1 = $46M , minus the $27.5M he's already being paid.  That leaves another $18.5M to cover everything.  Brewers currently have $9.5M available, requiring another $9M.

The other Cap Hits are correct for a cap savings of 2.5M.

This would leave $6.5m left on the Pujols Buyout. How would you like to proceed?

[Brewers GM]

Missed the 10% hit.  Please proceed as originally posted, but with the adjusted cap hit now at $3.5M in 2014 and $3.0M in 2015 (correct?).

[Flash]

Unfortunately, I don't think this correct:

CI Pujols, Albert, $27.5m (2015)
(2013 - 75%): 20.625 ~ $20.5M
(2014 - 50%): 13.75 ~ $14.0M
(2015 - 25%): 6.875 ~ $7.0M

Total to buy him out entirely in 2013 is $41.5M, minus the $27.5M he's already being paid.  That leaves another $14.0M to cover everything.  Brewers currently have $9.5M available, requiring another $4.5M.

*******************************************************************

I have bought out some contracts during my time in FGM and, according to the rules, a GM must must add the total of the remaining years on the contract and multiply that total by 1.1%.  For Albert Pujols that means $27.5 x 3 = $82.5 x 1.1 = $91.0m ($90.75).  We do not get the benefit of dropping a player (90%, 60%, 30% or 75%, 50%, 25%) and then paying off that amount.  We must pay the full amount of the contract.

I asked for an interpretation in August of 2012 when Roy was the FGM Commish.  He sent me a PM with the ruling I just described. I cannot access this link, but someone with moderator rights maybe able to do so:

"My decision can be found in the following post":

http://www.profsl.com/smf/index.php?action=post;msg=370169;topic=67744.0

Roy sent this to Colby, PaulS and me.

[Brewers GM]

I'll let someone else clarify and rule on it, but if its the larger number I will buy him out but leave the cap hits in future seasons - far too much to buyout completely.

[shooter47]

Unfortunately, I don't think this correct:

CI Pujols, Albert, $27.5m (2015)
(2013 - 75%): 20.625 ~ $20.5M
(2014 - 50%): 13.75 ~ $14.0M
(2015 - 25%): 6.875 ~ $7.0M

Total to buy him out entirely in 2013 is $41.5M, minus the $27.5M he's already being paid.  That leaves another $14.0M to cover everything.  Brewers currently have $9.5M available, requiring another $4.5M.

*******************************************************************

I have bought out some contracts during my time in FGM and, according to the rules, a GM must must add the total of the remaining years on the contract and multiply that total by 1.1%.  For Albert Pujols that means $27.5 x 3 = $82.5 x 1.1 = $91.0m ($90.75).  We do not get the benefit of dropping a player (90%, 60%, 30% or 75%, 50%, 25%) and then paying off that amount.  We must pay the full amount of the contract.

I asked for an interpretation in August of 2012 when Roy was the FGM Commish.  He sent me a PM with the ruling I just described. I cannot access this link, but someone with moderator rights maybe able to do so:

"My decision can be found in the following post":

http://www.profsl.com/smf/index.php?action=post;msg=370169;topic=67744.0

Roy sent this to Colby, PaulS and me.

Contract Buyout
Money owed to a player released under contract may be financed through a contract buyout.  This can be done by adding up the total remaining contract amount, multiplying it by 1.1 rounded up to the nearest $500k.  This amount may be divided up any way you choose as long as the number of years is not more than what it was before AND that no salary owed in any year is more than an amount in a prior year.  I will use some current examples to highlight the effects of the buyout and its 10% tax.

Under contract the first sentence explains that Money owed to a player released under contract (AKA a Cap Hit) can be financed through a buyout. When a player is released the 90%/75%, 60%/50%, 30%/25% are automatically applied.

The thread below is a transaction where the Giants wanted to release and Buyout a contract. It was Roy's opinion that Releasing a player and a contract would circumvent both the spirit of the rules and the rules by which you can release a player. Colby stated that the rules were written to allow a team to release and immediately buyout a players cap hits. After the discussion the Giants were allowed to choose to Release the player or Release + Buyout the player. They choose to Release + Buyout the player.

http://www.profsl.com/smf/index.php?topic=67744.0

Players are allowed to be released in FGM and have the Cap Hits immediately bought out through a contract buyout.

The Correct Pujols Contract Buyout is

To buy Pujols out entirely in 2013 is $41.5*1.1 = $46M , minus the $27.5M he's already being paid.  That leaves another $18.5M to cover everything.  Brewers currently have $9.5M available, requiring another $9M. They have made cap drops of $2.5M Which leaves $6.5M for future years.

Contract Buyout, Pujols, 2013 = $39.5M
Contract Buyout, Pujols, 2014 = $3.5M
Contract Buyout, Pujols, 2015 = $3.0M

[joeshmoe]

The rule is release the player and then buyout.  It is that you make the discounts accordingly (ex. 90,60,30,) add the remaining, and multiply that amount by 110%.  We've been over and over this.  Can we finally update the language in the rules to indicate this more clearly. 

All players are released, you then may buyout a released player.

http://www.profsl.com/smf/index.php?topic=67744.10

[shooter47]

Can we finally update the language in the rules to indicate this more clearly. 

This is on my list for tasks to take care of this off season.

[Flash]

I feel like a politico who is quoting a portion of a candidates speech from the past, but when I attempted to buy out Ronnie Paulino's contract in the same manner the Brewers are buying out the Albert Pujols contract I was rebuffed by our current Commish.  If you read through the thread I referred to, you will see that I did not get to release Paulino and then buyout the cap hits.

In that thread, our current Commish said I could not do so in the following post:

"
Re: Giants Contract Buyout
« Reply #3 on: August 07, 2012, 02:48:42 PM »
Quote
Quote from: ProFSL on August 07, 2012, 02:37:41 PM
$1.5m (2013) is cut first at 75/50% which is $1.125m and $750k, which totals $1.875m, multiply that by 1.1 and you have $2.063m which rounds up to $2.5m

You can't cut the player and take the 75% and 50% cap hits and then buyout the contract.  You either release the player or buyout the contract.  (My highlights)

Contract Buyout
Money owed to a player released under contract may be financed through a contract buyout.  This can be done by adding up the total remaining contract amount, multiplying it by 1.1 rounded up to the nearest $500k.  This amount may be divided up any way you choose as long as the number of years is not more than what it was before AND that no salary owed in any year is more than an amount in a prior year.  I will use some current examples to highlight the effects of the buyout and its 10% tax.

******************************************************************

So, instead of this:

C Paulino, Ronny, $1.5m (2013)
Salary obligation for 2012 & 2013 = $1.0m

Contract buyout: $2.0m x 1.1 = $2.2m, rounded up to $2.5m

I had to do this:
Buyout:
C Ronny Paulino, $3.5m (2012)
Current 2012 contract $1.5m + 2013 contract $1.5m + 1.1% fee $0.5m = $3.5m

******************************************************************

I was given two options:
1.  Release the player
2.  Release the player + buyout the contract

I chose Option 2 and had to buy out the two remaining years on Paulino's contract + the 1.1% tax with no release discount.  Granted, there was only a $1.0m difference, but the rule application was clear.  The Pujols interpretation was exactly what Colby said should happen, but that option was overruled and the Commish, rcankosy, and fully supported by our current Commish.  What happened to consistency?  How is it now that the rule is changed, particularly after our current Commish said I could not do the very same thing he is allowing the Brewers to do?

Contrary to a previous post, we have not been over and over this.  I made reference to this ruling earlier in the season when a GM bought the contract of a player who signed with a team overseas.  He bought out the remaining years of the contract and multiplied by 1.1%.  I did not see anyone questioning it then.  Now we have a significantly larger contract and now we see the rules changed. 

I'll have to go by what the Commish rules, but it certainly seems contrary to the rules as previously enforced.

[shooter47]

I feel like a politico who is quoting a portion of a candidates speech from the past, but when I attempted to buy out Ronnie Paulino's contract in the same manner the Brewers are buying out the Albert Pujols contract I was rebuffed by our current Commish.  If you read through the thread I referred to, you will see that I did not get to release Paulino and then buyout the cap hits.

In that thread, our current Commish said I could not do so in the following post:

"
Re: Giants Contract Buyout
« Reply #3 on: August 07, 2012, 02:48:42 PM »
Quote
Quote from: ProFSL on August 07, 2012, 02:37:41 PM
$1.5m (2013) is cut first at 75/50% which is $1.125m and $750k, which totals $1.875m, multiply that by 1.1 and you have $2.063m which rounds up to $2.5m

You can't cut the player and take the 75% and 50% cap hits and then buyout the contract.  You either release the player or buyout the contract.  (My highlights)

Contract Buyout
Money owed to a player released under contract may be financed through a contract buyout.  This can be done by adding up the total remaining contract amount, multiplying it by 1.1 rounded up to the nearest $500k.  This amount may be divided up any way you choose as long as the number of years is not more than what it was before AND that no salary owed in any year is more than an amount in a prior year.  I will use some current examples to highlight the effects of the buyout and its 10% tax.

******************************************************************

So, instead of this:

C Paulino, Ronny, $1.5m (2013)
Salary obligation for 2012 & 2013 = $1.0m

Contract buyout: $2.0m x 1.1 = $2.2m, rounded up to $2.5m

I had to do this:
Buyout:
C Ronny Paulino, $3.5m (2012)
Current 2012 contract $1.5m + 2013 contract $1.5m + 1.1% fee $0.5m = $3.5m

******************************************************************

I was given two options:
1.  Release the player
2.  Release the player + buyout the contract

I chose Option 2 and had to buy out the two remaining years on Paulino's contract + the 1.1% tax with no release discount.  Granted, there was only a $1.0m difference, but the rule application was clear.  The Pujols interpretation was exactly what Colby said should happen, but that option was overruled and the Commish, rcankosy, and fully supported by our current Commish.  What happened to consistency?  How is it now that the rule is changed, particularly after our current Commish said I could not do the very same thing he is allowing the Brewers to do?

Contrary to a previous post, we have not been over and over this.  I made reference to this ruling earlier in the season when a GM bought the contract of a player who signed with a team overseas.  He bought out the remaining years of the contract and multiplied by 1.1%.  I did not see anyone questioning it then.  Now we have a significantly larger contract and now we see the rules changed. 

I'll have to go by what the Commish rules, but it certainly seems contrary to the rules as previously enforced.

In the discussion of the buyout of Paulino I initially interpreted the rule to mean that you had to pay a buyout on the whole contract. However you will notice that once Colby explained the buyouts in this post...

The spirit of the rule was to condense all of a released player's liability into the current year.  When has it been said that a player could only be bought out if they were released in a prior cap year?  The language of the rules likely needs to be updated, but I see no problem with allowing a current drop to be turned into a buy-out.  The GM has to pay much more just to buy-out the player and reduce future liability which is the pro and con to the clause.

...I no longer argued the topic because I now understood how Colby had written the rule and his original intentions. At this point I agreed with Colby's viewpoint because Colby had stated the spirit of the rule when it was originally written. Then Colby and Roy continued to discuss the buyout until Roy Finally ruled that...

The rules do not specifically state that you can not release a player and then subsequently buyout his contract.  Therefore, I will allow it.  You have 2 options at this point.

1.  Release the player
2.  Release the player + buyout the contract

Let us know which option you are choosing, so we can treat the transaction accordingly.

...Now I'm not sure how the math was actually done on the buyout for Paulino in question as I don't have a copy of the old roster file. Roy ruled that you can release a player and subsequently buyout the players contract. It should have been done the way that Colby stated in this post...

$1.5m (2013) is cut first at 75/50% which is $1.125m and $750k, which totals $1.875m, multiply that by 1.1 and you have $2.063m which rounds up to $2.5m

This is following what Roy ruled to allow and how contract buyouts are now being processed in FGM. I am not sure how the final Paulino Buyout was handled by Roy or Paul S. Since I have become the commissioner of FGM I have handled Contract Buyouts by following Roy's ruling that Contract buyouts are handled by droping a player, determining the players cap hits and then applying this total to the 10% Tax. In the rule for contract buyout it states that, "Money owed to a player released under contract may be financed through a contract buyout." This shows that the buyouts are for cap hits and not total salary remaining. For an example of how I have interpreted, applied and enforced this rule see this post...

a release would give you cap hits in 2013 and 2014. The buyout is used to consolidate future cap hits to one lump sum that would be paid this year. To do this you have to pay a premium (10% buyout fee) to consolidate the cap to the present year and relieve yourself of future cap hits. In your example instead of taking the 2.5M 2013 and 2.0M 2014 cap hits you could use the buyout (and 10% fee) and pay 5.0M this year to free yourself off the 2.0M 2014 cap hit.

2.5M 2013 and 2.0M 2014 cap hits

or

5.0M 2013 cap hit

Contrary to a previous post, we have not been over and over this.  I made reference to this ruling earlier in the season when a GM bought the contract of a player who signed with a team overseas.  He bought out the remaining years of the contract and multiplied by 1.1%.  I did not see anyone questioning it then.  Now we have a significantly larger contract and now we see the rules changed. 

I believe you were referencing this when you were discussing a previous occurrence of this happening? http://www.profsl.com/smf/index.php?topic=99059.msg543057#msg543057 By the date you can see that this happened on June 30, 2013, 12:12:10 AM . This was almost a full month before I became the commissioner of FGM (July 24, 2013 http://www.profsl.com/smf/index.php?topic=101346.0) and was processed by Paul S. under his interpretation of the rule similar to that in the case of Paulino. Roy's ruling for how processing of contract buyouts should be processed was not followed.

In FGM under my administration I have enforced the contract buyouts rule to be applied to contract cap hits on released players and it will continue to be applied this way. This follows the precedence that was set during Roy's initial ruling on contract buyouts.