Major League Baseball Players Trying to Front-Load Contracts to Avoid Obama Tax Hikes

November 23, 2012 at 5:54 pm (Adam Dunn, Barack Obama, C.C. Sabathia, Carl Crawford, Contracts, Front-load, Greg Genske, Major League Baseball, Mitt Romney, Taxes, Vernon Wells)

It looks like major league baseball players, much like businesses, are proactively and pessimistically trying to avoid the disaster that is the looming second-term Obama economy.

Via My Fox NY:

Team executives and agents wandered into the Agave Sunset lounge at the resort where the general managers’ meetings were held in Indian Wells, Calif. Four of the six flat-screen televisions were showing election coverage, with the other two turned to sports.

President Barack Obama’s victory over Mitt Romney was of as much interest to baseball’s money men as the game scores, given the millions of dollars routinely guaranteed in player contracts these days.

As free agents negotiate deals this offseason, tax policy is an area that comes up along with the usual issues. Some players are wrangling for as much money as they can get before the end of the year to avoid a take hike in 2013.

“Front-loading would make sense if at all possible as tax rates will definitely go up on January 1st on all high-income taxpayers,” agent Greg Genske said in an email. “The only question is HOW MUCH will the rates increase????”

Genske of course should be wary of the tax implications lurking for his clients in 2013.  After all, his clients currently represent nearly $100 million in contract values for the 2013 season.  Genske represents such clients as C.C. Sabathia, Vernon Wells, Carl Crawford, and Adam Dunn.

Nobody expects to feel sorry for MLB players, but the point here is that prevailing wisdom in the player agent field is to get your money up front, and get it before President Obama can take it away.

Perhaps advice we should all be following…

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So Much For the Refreshingly Honest Admission by Melky Cabrera

August 19, 2012 at 12:39 pm (Dishonesty, Fake Website, Lying, Major League Baseball, Melky Cabrera, MLB, San Francisco Giants, Steroids, Suspension)

When San Francisco Giants All-Star outfielder Melky Cabrera was recently caught with a positive test for performance enhancing drugs, and was hit with a subsequent 50-game suspension, he flatly admitted his transgression.

The approach was refreshing, with many in the media saying that “at least he admitted to it”, as opposed to so many stars in the past who have concocted elaborate stories in an attempt to muddy the waters of guilt.

Here is an example from SB Nation:

Typically a player will say that the results of the test were tainted. Perhaps he didn’t realize what he had taken. Plans to appeal the decision are often thrown around at this point to at least create an opening in the court of public opinion for the most diehard fans — so at least a tiny section of Pac Bell Park will say, “I just don’t believe he really did it.”

Instead Cabrera went the direct route. He was honest, concise and vulnerable. He said he did it, offered an apology to all parties involved and went silently into the suspended night.

It was the right move and one that might save his reputation in the end.

Well that didn’t last mong.

So much for honesty…

San Francisco Giants star outfielder Melky Cabrera mounted a campaign to avoid his 50-game suspension that included a fake website featuring a fictitious product in an effort that was quickly uncovered by MLB investigators, the New York Daily News has reported.

Citing an anonymous source close to the case and an associate who told the newspaper he was “accepting responsibility for what everyone else already knows” concerning the fake site, the Daily News reported famed investigator Jeff Novitzky and agents from MLB’s investigative arm have begun looking more closely at Cabrera and the scheme purportedly hatched in July as they seek the source of the synthetic testosterone found in his urine.

“There was a product they said caused this positive,” the source told the Daily News. “Baseball figured out the ruse pretty quickly.”

The purpose was to fool MLB and the players’ union, while presenting them with the website and resulting phony product information, into believing Cabrera had ordered a supplement fraudulently spiked with testosterone, therefore causing the positive drug test, the report says.

So we’ve now gone from refreshingly honest, and the possibility that Melky may have saved his reputation by being truthful, to discovering one of the most elaborate schemes to avoid suspension since the implementation of the stricter steroid policy.

It is a cautionary tale for those who want so desperately to believe in their hero-athletes.  Nothing is as it seems…

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