We are already aware of the competitive reason that trade deadline figures are considered the most silent we’ve experienced. Several teams are in competition owing to the brief season and the longest postseason that sellers are infrequent and scarce. Your purchases are not even worth up to a month of a conventional season. You might not spend more than two or three games throughout a season, even in one of the best clubs. The season can abruptly come to an end as a result of the pandemic once you executed a significant trade.
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However, another significant reason the Trade deadline can become quiet is money.
While the primary factor of a season is not always the unloading of contracts, the debt of one team, acquired by another team (and the ability to experiment with the dollars) is among what is doubling buyer-seller trades. The concept that the financial aspect of the outcome of a deal can be coordinated enables it to agree on the acquisition cost of the actual player.
The Front offices throughout baseball are experiencing a reduction in their budget mid-season. Teams are on vacation and dismissing their staff in order to limit their expenses. Considering the extra player salary, it would be quite difficult for any organization to request for a few hundred dollars. Therefore, having one less variable to bargain with during trading would bring difficulty in generating trades, particularly for top players that are making top dollars.
This reality has been internalized, however, it also delivers a consequential proposition that is not even discussed, especially in a universe where several teams are stringent on spending and are desperate to offer any kind of salary. But does this imply that the amazing opportunity of being a buyer in the market has returned? If you intend to assume a contract in this market, probably a long term or rental deal, wouldn’t you want a tiny acquisition cost?
Besides, if you intend to engage in an extremely bad contract, you would want to ensure that the selling team buys the idea, for instance, a top prospect.
How to purchase an impact player and a top prospect for only money?
Imagine a situation where Player X is available on a long-term contract that looks fine in the normal world, although not great. However, during the pandemic, the contract appears frightening to a fussy owner, who has experienced a loss of a hundred million dollars in his highly leveraged organization this year. The team would be desperate in moving the contract even if Player X contributes well to the team.
Now consider that you are a competitor interested in Player X for this year and many more. Let us consider that you are among the organizations that are willing to make financial investments, can bet that baseball will be highly accepted in the UK in the long run, and also have the financial capability of handling the contract. Also, you are willing to exchange the Player X, a top prospect for a nothing burger piece, and assume his full contract. This has enabled you to include an excellent Trade Deadline piece that would be useful for the coming season and obtained a top prospective Player X on a contract that might eventually become great once baseball recovers.
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This might seem unbelievable, but the truth is, this year, it is not.
I’m informing you that considering the messy condition of the current MLB finances, I’m not sure that individuals are correctly reviewing the responsibility of money in the current and future possibilities of teams. Several teams are available out there, ready to move over $50 million from their finances to exchange for the loss of a significant prospect. This is a win-win situation for any trading partner that might want the $50 million contract.
Will any team take advantage of this opportunity?
Well, it is quite impossible to confirm that clubs would be doing this.
Don’t look beyond the controversial negotiations that intend to restore this season. Whether it is considered proper or not, team owners have assumed to have experienced significant losses this year which implies that the potential of including a few amounts of funds to the expenditure aspect of finances this year will encounter serious resistance, as well as the risk of executing new contracts for 2021 and beyond as the outcome of the current pandemic, is still unknown. Truth is, almost every club owner will outright refuse.
This is the reason that this procedure is a rare opportunity. There might no longer be a period where several teams like this will be desperate in making the most of their finances. To be certain, those similar teams will be protecting their prospects jealously (they are more valuable in their environment), but what if the owner of the team realizes that he can save tens of millions of dollars by releasing a prospect? Don’t let us be ignorant, there are several amazing deals that can be currently executed.
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But at his point, this can be considered as academics. I simply wish the Cubs will proceed to begin negotiations with a few penurious clubs on how they can easily release a top prospect at a full price in exchange for an excellent prospect. But then, as far as we know, the Cubs have currently launched a network that more than 50% of its inaugural games ended in losses and are among the broke clubs.
Mandatory Cubs Luxury Tax Discussion.
You can’t discuss the Cubs and money right now without considering the luxury tax. In brief, the luxury tax condition has no influence on the above mentioned in relation to the Cubs.
In the previous off-season, most efforts of the Cubs go into making sure the 2020 payroll is covered by the luxury tax. This would refresh the penalties and enable them to have maximum flexibility while entering the 2020 off-season without any risk of becoming a three-time offender in 2021, which is something the entity is trying to avoid.
In clearer terms, the efforts of being covered by the 2020 tax are only significant in a situation where the Cubs are ready to achieve spending that is above the level of the 2021 luxury tax. Since the finance of the team has been weakened by the pandemic and affected the player market, it’s hard to envision a situation where the Cubs surpass the luxury tax in 2021 irrespective of their 2020 payroll. They are simply not going to sign a couple of top prospects in the off-season that will increase the payroll. Apologies, but you need to be getting prepared for this reality.
Considering this new world of pandemic, the luxury tax situation of 2020 has no significance to the Cubs’ future agenda. (Since I can’t see how they can even proceed in 2021 in the first place). Besides, the penalties associated with revenue sharing won’t hurt so much (since the available revenue to share is less), and the offer penalties for free agent/qualifying won’t be hurting as much (since only a couple of free agents will get these kinds of offers in this situation, and there is definitely no quitting Cubs).
Therefore, it is unlikely for Clubs to get under the luxury tax this year (restricting some rules modifications about the method, it will be estimated and nothing of such has been declared), and doing it won’t have much significance so it is easy to contend that every step taken by the Cubs should be motivated financially whichever way. Actually, I meant in relation to the luxury tax.
So, what if the owners intend to access their finances and permit the purchase of a few young prospects that are extremely cheap by the front office (when considering the cost of acquisition)? Well, all the best, as previously stated that it is unlikely that owners will be doing this in the year. However, this is an opportunity, and since the luxury tax condition of the Cubs isn’t a significant reason not to. My point is that the Clubs can sign new impact players in this year, while assuming their contracts and probably obtaining prospects as well. Although it is not expected, I won’t chastise teams that don’t take advantage of it.