Comments on: This morning in the Middle East, er, the Matsuzaka negotiations (And: Is Scott Boras pulling a Fonzie?) http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/ Media, Baseball, Boston, the Red Sox, Music, Literature, and Mnookins Fri, 10 Oct 2008 19:40:26 +0000 http://wordpress.org/?v=2.6 By: soxManila http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3538 soxManila Wed, 13 Dec 2006 02:43:45 +0000 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3538 I don't think Boras realizes how important face-saving is to the Japanese. If Matsuzaka returns to Japan, it embarasses his team, causing the team to lose face, thus making him lose face. It will all be a lose-lose situation for Matsuzaka. My suspicion is that Matsuzaka will force Boras to accept the Red Sox offer. The only problem with this is that Matsuzaka will be concerned about Boras possibly losing face, regardless of whether Boras has a face to lose or not. Hahaha. I don’t think Boras realizes how important face-saving is to the Japanese. If Matsuzaka returns to Japan, it embarasses his team, causing the team to lose face, thus making him lose face. It will all be a lose-lose situation for Matsuzaka. My suspicion is that Matsuzaka will force Boras to accept the Red Sox offer. The only problem with this is that Matsuzaka will be concerned about Boras possibly losing face, regardless of whether Boras has a face to lose or not. Hahaha.

]]> By: V06 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3525 V06 Tue, 12 Dec 2006 21:12:22 +0000 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3525 "The only person who can stop this madness is Matsuzaka, who could tell Boras that $10 million a year is enough money, and that he is not willing to be a suicide bomber in Boras’ posting system jihad. Comment by benschon — December 12, 2006 @ 2:46 pm " I dig your analogy but it would be even more awesome to say "kamakazi" instead of "bomber" and somehow use Pearl Harbor instead of referring to a jihad. Although perhaps you are trying not to be racially insensative to Japanese. The Boras-Red Sox FO dueling press conferances make for great sports entertainment. This whole conflict keeps me and many others like me from being preoccupied by our more burdensome cares and struggles of day to day life. On a larger scale... who cares about Iraq, Iran, or global warming? Many issues pale in significance in comparision to my need for diversion and entertainment... it's imperative my Red Sox must get their man in the most cost effective manner possible. Because a few million here and a few million there soon starts to add up to some serious money. “The only person who can stop this madness is Matsuzaka, who could tell Boras that $10 million a year is enough money, and that he is not willing to be a suicide bomber in Boras’ posting system jihad.

Comment by benschon — December 12, 2006 @ 2:46 pm ”

I dig your analogy but it would be even more awesome to say “kamakazi” instead of “bomber” and somehow use Pearl Harbor instead of referring to a jihad. Although perhaps you are trying not to be racially insensative to Japanese.

The Boras-Red Sox FO dueling press conferances make for great sports entertainment. This whole conflict keeps me and many others like me from being preoccupied by our more burdensome cares and struggles of day to day life. On a larger scale… who cares about Iraq, Iran, or global warming?
Many issues pale in significance in comparision to my need for diversion and entertainment… it’s imperative my Red Sox must get their man in the most cost effective manner possible. Because a few million here and a few million there soon starts to add up to some serious money.

]]> By: jim http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3524 jim Tue, 12 Dec 2006 20:40:38 +0000 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3524 Dan - Zimblast (the only guy I trust on the matter) says it's 5-10 million a year, at most. And Boras is supposedly already negotiating for that on top the contract. In fact I think that's pretty standard language these days. Further, he'll get a windfall from Nike. So DM will get paid. But Boras also thinks he shouldn't get Gil Meche money when everyone seems to agree he's clearly a top of the roatation guy. Indeed, if I was Boras that's what I'd keep hammering home - "They think you're worth less than this guy..." The problem is this: The shouldn't have signed Lugo and Nancy without trading Manny first. Now they're hamstrung financially. And the obscene bid just makes them look that much worse. Dan -

Zimblast (the only guy I trust on the matter) says it’s 5-10 million a year, at most. And Boras is supposedly already negotiating for that on top the contract. In fact I think that’s pretty standard language these days. Further, he’ll get a windfall from Nike. So DM will get paid. But Boras also thinks he shouldn’t get Gil Meche money when everyone seems to agree he’s clearly a top of the roatation guy. Indeed, if I was Boras that’s what I’d keep hammering home - “They think you’re worth less than this guy…”

The problem is this:

The shouldn’t have signed Lugo and Nancy without trading Manny first. Now they’re hamstrung financially. And the obscene bid just makes them look that much worse.

]]> By: dan 3 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3520 dan 3 Tue, 12 Dec 2006 19:48:18 +0000 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3520 Popular opinion at the time the Red Sox posted $51.1 million for Dice-K was that they would be able to earn that money back in incresed marketing and television rigths sold in Japan. Why not give dice-k a percentage of that revenue as part of an escalator clause in his contract. That way the sox are not paying him directly for his unproven ability to pitch in the major leagues but instead for his established status as cultural icon in japan. Boras after all was the one who stated the Matsui was worth an estimated 25 million in advertising and tv rights for the Yankees. This way Theo throws it back on Boras, if he is truly worth that much in the Japanese market Boras should have no problem accepting 10-15% of this revenue rather than money up front. Thoughts? Popular opinion at the time the Red Sox posted $51.1 million for Dice-K was that they would be able to earn that money back in incresed marketing and television rigths sold in Japan. Why not give dice-k a percentage of that revenue as part of an escalator clause in his contract. That way the sox are not paying him directly for his unproven ability to pitch in the major leagues but instead for his established status as cultural icon in japan. Boras after all was the one who stated the Matsui was worth an estimated 25 million in advertising and tv rights for the Yankees. This way Theo throws it back on Boras, if he is truly worth that much in the Japanese market Boras should have no problem accepting 10-15% of this revenue rather than money up front. Thoughts?

]]> By: dansoxfan http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3517 dansoxfan Tue, 12 Dec 2006 19:15:36 +0000 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3517 much of the commentary relating to this story talks about which monies are and are not subject to the luxury tax. I'd like to propose a more rigorous way of thinking of this. let's make the numbers simple: a team decides it is going to spend $200 million next year, and everything over $150 million is taxed at 50%. that means that the team will be charged $25 million on a payroll of $200 million. in this example, the luxury tax <i>for this specific team</i> next year is 12.5%. and an intelligent team (assuming they decided ahead of time that they were going to have a payroll of $200 million) should think of <i>every</i> salary for next year as being taxed at 12.5%. the implication here is that the sox are not "saving" the full luxury tax burden by sending $51 million to the Lions, they are only saving a prorated amount. just a thought. much of the commentary relating to this story talks about which monies are and are not subject to the luxury tax. I’d like to propose a more rigorous way of thinking of this.

let’s make the numbers simple: a team decides it is going to spend $200 million next year, and everything over $150 million is taxed at 50%. that means that the team will be charged $25 million on a payroll of $200 million.

in this example, the luxury tax for this specific team next year is 12.5%. and an intelligent team (assuming they decided ahead of time that they were going to have a payroll of $200 million) should think of every salary for next year as being taxed at 12.5%.

the implication here is that the sox are not “saving” the full luxury tax burden by sending $51 million to the Lions, they are only saving a prorated amount.

just a thought.

]]> By: crimsonohsix http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3515 crimsonohsix Tue, 12 Dec 2006 18:58:21 +0000 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3515 I agree strongly with tinisoli - and I'm surprised that this view hasn't been taken in any of the publications or espn columns today. I agree strongly with tinisoli - and I’m surprised that this view hasn’t been taken in any of the publications or espn columns today.

]]> By: benschon http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3514 benschon Tue, 12 Dec 2006 18:46:41 +0000 http://www.sethmnookin.com/blog/2006/12/12/this-morning-in-the-middle-east-er-the-matsuzaka-negotiations-and-is-scott-boras-pulling-a-fonzie/#comment-3514 Boras' financial interest in bringing down the posting system needs more coverage. The Red Sox $51 million posting fee goes directly from team to team (to the Seibu Lions), bypassing the player, and therefore it is not subject to Boras' agent commission. 5% of the value of the contract is what I have seen reported as his standard commission, so he probably figures he is "losing out" on $2.5 million in this transaction. The Sox don't care whether they pay $51 million to Matsuzaka/Boras or to the Seibu Lions, as long as they get the player. Boras, however, cares a lot. I'm sure Boras is looking at the future, and wants 1) posting fees that don't generate him any commissions to be eliminated and 2) maximum competition among manic, free-spending GMs, which doesn't happen under the posting system. The only person who can stop this madness is Matsuzaka, who could tell Boras that $10 million a year is enough money, and that he is not willing to be a suicide bomber in Boras' posting system jihad. Boras’ financial interest in bringing down the posting system needs more coverage. The Red Sox $51 million posting fee goes directly from team to team (to the Seibu Lions), bypassing the player, and therefore it is not subject to Boras’ agent commission. 5% of the value of the contract is what I have seen reported as his standard commission, so he probably figures he is “losing out” on $2.5 million in this transaction. The Sox don’t care whether they pay $51 million to Matsuzaka/Boras or to the Seibu Lions, as long as they get the player. Boras, however, cares a lot.

I’m sure Boras is looking at the future, and wants 1) posting fees that don’t generate him any commissions to be eliminated and 2) maximum competition among manic, free-spending GMs, which doesn’t happen under the posting system. The only person who can stop this madness is Matsuzaka, who could tell Boras that $10 million a year is enough money, and that he is not willing to be a suicide bomber in Boras’ posting system jihad.

]]>