Financial Question

[spartanfan1]

Just checking here before I do something I might regret, but is there any big negative consequence for me releasing a guy right now like Tim Redding? I figure I can place him on waivers first, to see if there are any takers. If not, is it okay for me to release him outright?

I know I'll owe his full 2007 contract of $1.0 million right now, but my current balance is $9.7 million so I'll still be positive cash flow.

Either way, I have to pay Redding this year and then I'm planning to non-tender him so he is released before arbitration in 2008.

I'm just thinking I could get him off the books now and maybe free up some future cash to sign extensions for other players.

Is there a downside I might not be seeing?

Thanks for any advice.

Eric

 

[abncal]

always reserve releasing as a last resort... remember we can get draft pick compensation if he is signed by another team during the offseason (if you choose to offer arb and he declines), you can try to work him in a trade as well. always try to get something in return... waiver and release as last resorts.

 

[kendalld99]

I second that... Let him play it out, he maybe a
pitcher you need in case of injuries. Then let him
go after the season.

 

[spartanfan1]

Well, it's just that it's tying up budget space and limiting my ability to sign players that I actually want to keep. My owner is giving me $0 for contract extensions. I need a way to get some salary off the books and thought this would be a viable option.

 

[JamesNevans]

You gain nothing in your budget for just releasing him, if anything you have to pay for a guy to take his place even if it is league minimum $440k. If you need a roster spot you can try to send him down if he has an option and has less than 5 years in the ML, but like others say already you have to have him as an option should you have an injury since the money is sunk into him already.

 

[spartanfan1]

Well, I have 11 SPs in my organization that are better than him so he would never be an injury replacement for me. He's not taking up a roster spot since he's in my AAA.

The budget I'm trying to clear up is my projected 2008 budget. Redding is showing $1.1 million estimate in arb. If he is released, that goes away and my projected 2008 payroll gets smaller.

I'm in good shape with my 2007 budget, but the problem is that I'm exceeding my 2008 projected budget. I'm not sure why, but my owner is lowering the budget next year by about $20 million so I need to unload some 2008 salary and just thought I'd save time and do it now, rather than wait to non-tender him.

Maybe it doesn't really matter if I dump him now or at the end of the season. Guess I'm still not seeing any harm in doing it now though, but thanks for the feedback.

Eric

 

[JamesNevans]

If he's using a roster space you need in the minors you can let him go, but otherwise there are too many things that could happen between now and arbitration offering dealine. You could have a mass of injuries, you could make trades that lower the number of players at that position in reserve, and finally the most important is that he could see a boost in his numbers that make him more valuable than you think. If he is in the minors more than likely he will lose his arbitration hearing, of course that means just a 20% reduction in his CURRENT salary rather than the estimate.

 

[spartanfan1]

Thanks for the feedback. I'm just having a tough time making trades. My franchise will be in serious trouble in 2008 unless things change so I guess I have some time to figure something out. Even with Furcal's contract expiring, I still need to drop a ton of salary, but maybe my owner will change his mind and increase the budget so I'll hope for the best.

I don't suppose you'd have any interest in 3B Branyan, would you? Contract is big, but so is his power rating and production. I see that you're near the bottom of the league in HR so figured I had to ask. If not, no big deal. He's having a great year so maybe I should ride it out and deal with my potential 2008 issues in the off season.

Thanks again for the advice.

Eric