Limits to trading Cash

[Colby]

Can someone please explain why it's a bad idea to trade cash for players?

I don't think it is a bad idea, and I don't necessarily think we need a rule.  This is where the TC's roll becomes critical in making sure that trades have balance and good intent.  Why not trust the TC?   They have been doing a good job so far making sure trades are legit.  I would say the general rule of thumb is you have to give more than just cash to obtain a player.

[Canada8999]

When cash is included in a deal, is that cash tied to the player's contract?  For example:

Team A trades Player 1 to Team B, along with 5M in cash.
Team B then later trades Player 1 to Team C - do they NEED to send the 5M, or can they chose to keep it?

My interpretation was that cash included in a deal may be because of a players contract, but was still independent (similar if trading cash for picks, where there is no contract to associate, or receiving cash form RS).  Dan has told me that this is not how the rule has been enforced in recent transactions, and that teams have been forced to move the received cash onto the next team.

Thoughts?

Note: I thought I remembered seeing cash on teams that was received for players they no longer owned, but I can't seem to find any of those such examples (may have been a 2009 contract).

[nerwffej]

that happened with a trade earlier in year with rockies and myself i got hudson but he didnt send cash he got to me. But in trade we just made cash was sent both was as following player

[Dan Wood]

Jeff check your page, you got the cash. I just missed it the first time when processing the trade. That cash has gone through 3 teams now. So if another team is paying for someone's salary, and that player gets moved, the cash should stay with the player(contract). It has been that way since I started in the league. To name a few players that have passed through my team... Tim Hudson, Scott Rolen, Carlos Zambrano also comes to mind. Otherwise we are just moving cash. A contract is a contract, and it stays with the player. If we change what has been currently done, then there was nothing wrong with the Hanley/ Bosox trade, since we will all just be sending money to other teams. I vote for cash stays with the contract. It has worked this far.

[rcankosy]

After having seen postings for this type of transaction by other teams, I would like to know if it is legal to sell a draft pick for cash.  Is there a limit to how much cash you can receive for a pick?

[Colby]

After having seen postings for this type of transaction by other teams, I would like to know if it is legal to sell a draft pick for cash.  Is there a limit to how much cash you can receive for a pick?

I think I forgot to respond to your PM Roy.  It is legit to sell a draft pick for cash.  The TC will decide if the cash amount is unfair for the draft pick.  Remember, the TC can vote unbalanced trades through as long as they are not too egregious.

[lp815]

I don't think that cash should be able to be traded under any circumstance unless that cash is applied to the contract of a player being obtained in a trade. I think if you allow for players to be bartered for cash you enter into a whole new realm of problems regarding deferred cash payments in future years, flat out purchasing of a player by a large market team (which they can already do in free agency) and I'm sure there are many other issues that could arise but they elude me at this time.

I think Kris brings up a very valid point, and with the latest trade between the Pirates and Jays, this should be brought up again.  We have had every trade involving straight cash being in trades come up for debate.

It seems that this idea is more trouble than it is worth, to the point where Dan has expressed his views on the trade publicly.

I don't think the matter of whether a trade is fair or not should take precedent on whether the practice is a good one for the league.  It has seemed to split a good lot of us.

I would recommend we scrap the idea of trading cash, unless it is tied to a player.

[Colby]

I second on Jake's point on eliminating the trading of cash unless it is tied to a player's contract and is not more than the annual salary of that player.

Daniel and I will rework our deal.

[guak2005]

How about trading existing debt, is that a possibility? Just want to make everything clear here. also what will happen to other money deal already approved or processed?

[Canada8999]

I think Kris brings up a very valid point, and with the latest trade between the Pirates and Jays, this should be brought up again.  We have had every trade involving straight cash being in trades come up for debate.

It seems that this idea is more trouble than it is worth, to the point where Dan has expressed his views on the trade publicly.

I don't think the matter of whether a trade is fair or not should take precedent on whether the practice is a good one for the league.  It has seemed to split a good lot of us.

I would recommend we scrap the idea of trading cash, unless it is tied to a player.

I agree, but have a few questions:

Can I send PlayerA and pay all of his salary, and receive PlayerB with no cash received for his salary (with the other team net shedding salary)?  Or is the max I can send with PlayerA the difference between the salaries of A and B?

Can I send cash to pay for the bonus of a draft pick?  Pick 1-1 is nice, but it's a lot nicer if someone sends me the 7M to cover the bonus.

How can cash be paid for future years?  Do I need to pickup the same amount of a players salary in each season, or can I vary the amount paid as I chose?

I'm not super opinionated on any of these, but think they are some of the immediate questions that will be asked.