Update
I'm sorry, but this is as crazy an expediture as I've ever seen. I'm trying to come to grips with how the Red Sox bid more than $50 million for Matsuzaka, when the 2nd place team is surely to have come in at around $30 million. Could they have possibly read the market that poorly?So many questions to be answered. The saga continues in the next days and weeks of negotiation. Stunning.
posted by Mike Plugh @ 11:15 AM
14 Comments:
Sounds like the Mets came in at $38. $51.1 indicates they thought someone would be in at $50 or around there.
Besides, isn't there a chance some of it comes back when the Japanese team kicks in some bucks to keep the deal alive?
30 million? Thought for sure you'd like to rag on the Mets for bidding 38 million, as has been reported.
As for 51 million...could be a misinterpretation of 5,100,000,000 yen which would = about 43.3 million in dollars.
If the Sox bid only exceeded the second highest bid by 5 million or so, would you consider it as excessive as you've claimed?
The Mets reportedly bid $38 million. Besides, this money doesn't count towards the luxury tax threshold. To teams like the Sox, Mets, and Yanks, it's simply play money.
The Mets reportedly bid $38 million. The bid money doesn't count towards the luxury tax threshold, anyway. To teams like the Red Sox, Mets, and Yanks this is simply play money.
well lets see...your wrong again haha. The mets bid in the 40 million dollar range and the yankees bid just shy of 40 million. Dream of better days buddy...
The second place team was the Mets at 38 million. This gives some perspective. If the Sox had any idea the Mets were going this high they may have expected the Yankees to outbid that and go over the 40-45 mark since this is all silent you are having to guess in a range of + or - 5 million dollars. To outbid a 40-45 million dollars you have to go to 50 and they went "The Price is Right" on them and added the 1.1 to top a 50 million bid. I didn't say the money was rational, but it was an educated bet to insure you won this bidding. But then again were is money rational in sports.
You could sign Schmidt for 80-90 million and watch him blow his arm out again. If he would even leave the west coast.
Reports are that the Mets bid was between $39-$40 Milion while the Yanks were at $33 Million.
With those two teams involved, you can never be too sure. Remember that the Yankees offered Damon $12 Million more than the Sox number that they made clear they wouldn't go over.
Keep in mind that the bid is a one-time cash expense that is better compared to upgrading your stadium or buying your own network (Mets).
It is being speculated by major league officials that they will be able to sign him for $7-$10 Million per year for around 4 years. Matsuzaka has no leverage now, and I am pretty sure he won't want to head back to the Lions, costing them the $51.1 Million bid, because he was squabbling over a few Million here and there.
So no, they will not pay him $20 Million per year. If he is as good as advertised, he will be quite a bargain at the contract they will get him on.
Consider it a $51.1 investment in the Japanese market.
Thanks for making this blog and getting us good info.
First I just wanted to say I have been reading this blog since I found it in August and it has been very informative. So much so that I actually picked up Mr. Matsuzaka, as Theo has begun calling him, in my keeper league fantasy team in September.
So with that being said I can't understand your latest post. Sure $51 is a lot of money to normal people and normal teams, but not the Red Sox. This $51 million doesn't count against the luxury threshold so all those ideas of spending it on their needs at SS, 3B, 2B, RF (and in my opinion 1B) are baseless. The Boston Red Sox have more money than 28 other MLB teams and their only reason for not having the Yankees' payroll is the simple idea that its not smart to give away money to your competitors. (I think the Twins are saving all of Steinbrenner's luxury tax checks to pay Johan)
And if you think a team that has advertised every square inch of DisneylandNortheast, I mean, Fenway Park won't make $51 million back from the Japanese market, you just don't get it.
I can see it now...
Ricoh and Sony competing to build a brand new centerfield scoreboard.
Japanese writing in adds along the backstop.
A new Japanese translation of the website.
A "Red Sox Futures" camp in Japan.
NESN in Japan.
Children's books teaching Japanese to Bostonians and English to the newest members of Red Sox Nation.
And something that nobody has even thought of yet because we don't have their intelligence.
The possibilities are endless for the new "business orientated" ownership. $51 million is a great investment for their future.
-Rob McLaughlin
Boston, MA
Mike,
Great stuff here at the Matsuzaka Watch. I'm curious how big a contract you think Matsuzaka will get from Boston, though. Anywhere from $8 to $15 million per year (plus posting fee) is what I hear.
Out of curiosity, what does Matsuzaka make right now? I found a salary history for him here, but it's in a strange unit and I can't figure out if I got the currency exchange right. What is that, about $2.7 million for 2006? Or am I way off?
The gigantic price the Red Sox paid to negotiate with him will obviously drive his price up, but if he's only making $3 mil./year in Japan, Boston won't have to throw the kitchen sink at him to significantly improve on what he could make if he stuck with the Lions.
Also, keep up the good work -- it'll be interesting to see how this all plays out.
i find it funny you as a yankees fan was about to jizz in your pants about matsuzaka. but as soon as you see hes a red sock he sucks. this blog has now lost its credidbility. go sox
First let me say I have loved this blog, been following it and had fun. I am a RS fan as well. My only question however, is your most recent statement, regarding the RS misjudging the market. Although they did bid very high, this does get them into the Japanese market, which will obviously bring the money back to them. Also, last night during the annoucement of it, they didn't say who the second highest bid was, but the Mets said they bid 38, which is close to 40, still below the 51 but we are not talking about half as much, as you seemed to state. Again great blog and I look forward to following it until D-Mat is signed (hopefully)
I think it is important to remember here that the 51.1 is contingent on a deal being worked out. I think a huge part of the Sox calculations is the fact that if they don't get a deal, a)they keep the 51 mil, b)he's not a Yankee in 2007, c) Seibu will pitch him until his arm falls off because he WILL be a free agent in 2008 and d) Boras gets no commission. Thus, it appears likely a deal will happen.
So, is it worth it? Apparently, they think so. But I think the Yankee lineup could hit on Mars or at the bottom of the ocean, so I don't think its all that bad for New York. Of course, I'm a Red Sox fan, so I hope he goes 6-0 against you with 5 shutouts and a no hitter.
I'm a little surprised George didn't bid higher, though, because the calculations work the same in reverse.
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