Explaining "present day value" in baseball contracts and deferrals

[Brock Beauchamp]

What exactly is "present day value" in baseball contracts? Here's a breakdown, straight from an accountant.

Sifting Through the Vladimir Guerrero Jr. Contract Noise - Blue Jays - Jays Centre

JAYSCENTRE.COM

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The baseball media is mischaracterizing the actual value of contracts with deferred money. Let's get it straight.

 

[Fear The Chorizo]

Cool read....i think another informative article could be written about actual value of contracts based on state/provincial tax hits players take for signing them.  Having to pay Canadian taxes on half your games and then also be taxed for playing a good chunk of your road games in NY, Boston, Baltimore eats alot into takehome pay for Blue Jay players.  They at least had Fla for one of their division road game states, but now who knows where the Rays will call home lo term after their crappy stadium got wrecked.

[Samurai Bucky]

Quote

 As I will illustrate, the present value of Toronto's offer was possibly $321.1 million and considerably less than $450 million.

"Considerably less..."  Back when I was younger, $321.1 was considered a s***-ton of money.  I guess it isn't enough, anymore.

Wow... that is a lot of money.  Millionaires and Billionaires, right?