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Chat with MLBTR's Steve Adams: 4/26/22
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gleyber
3:50
For teams like the NYY, who are always at or above the LuxTax. Why not front load these long term contracts big time? Instead of offering Judge 241mil, 33mil 7yrs. Why not offer him 175mil 7yrs 25mil but give 105mil bonus and then 10mil per yr. These contract for luxtax purposes go by the AAV. Yanks save 8mil per, + the yearly tax savings. Judge gets to invest his money earlier. Every1 wins
Steve Adams
3:51
The average annual value of a contract includes all of the guaranteed money on a deal. It seems like you're trying to say, pay him a signing bonus up front to lower the luxury hit, but that wouldn't work. The signing bonus is counted in the AAV of the deal.
3:54
Ok, I have to wrap up for the week. I'm on Twitter @Adams_Steve for more questions if you're so inclined.

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Thanks for chatting everyone, and have a great week!
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