Bryce Harper to Phillies; 13 years, $330M

[Litehouse]

The weather is better in San Diego but you would have to put up with the residents of those places as well...

That sounds like another plus for San Diego

[bill hAll Star]

 

Those crunching numbers on cost of living and taxes and all that, I think it's all irrelevant at this point. Dude is getting $330 mil, and who knows what else in endorsements. He could live on the moon and the cost of living wouldn't effect him much.

No kidding

 

 

Regardless of tax rates and cost of living amounts in whatever city, Harper will make almost 400 million for his career. Let the number sink in. 400 million dollars. That's incredible wealth. He could live very comfortably just on interest of that wealth if done smartly.

 

I get your point but after taxes and after paying his agent (is it 3% or 6%?) it's more like $155 million or thereabouts. Still, your point remains. He could invest not smartly and still live off interest.

 

Yeah, so obviously he could afford any house in any market, BUT it would take a little bit less out to buy a $4-5 million regular season home on Lake Drive or a palace in Oconomowoc as compared to $15-$20 million for a beachside mansion (which he will probably buy anyways) in LA. Using Milwaukee as an example because I don't know Philly that well, which would be a bit more expensive, of course.

[danzig6767]

Yeah, so obviously he could afford any house in any market, BUT it would take a little bit less out to buy a $4-5 million regular season home on Lake Drive or a palace in Oconomowoc as compared to $15-$20 million for a beachside mansion (which he will probably buy anyways) in LA. Using Milwaukee as an example because I don't know Philly that well, which would be a bit more expensive, of course.

Regardless where you buy that home and for what amount, it's still an asset, not a cost lit on fire.

 

So say you have to buy a similar home in a high cost of living place vs a lower cost of living place, whenever you decide to sell that home, that home will be worth a lot more when you sell it.

 

If instead we were talking about someone making around 50-60 grand in Milwaukee and had to relocate to LA, while making the same salary, then yea, cost of living can become a big issue. When you are making 25 million a year, not so much assuming you aren't a complete moron with your money.

[JosephC]

From Travis Sawchik, Bryce Harper May Already Be Past His Prime.

 

Also, the reported offers for Harper per Bob Nightengale:

 

Bryce Harper’s final offers from 3 Finalists:

 

#Dodgers: 3 years, $135 million or 4 years, $168 million.

 

#SFGiants: 12 years, $310 million.

 

#Phillies: 13 years, $330 million. No opt out. Full no trade. No deferred money

 

Can't say the market short-changed him in any way at all.

45 million per season for 3 years

42 million per season for 4 years

25.83 million per season for 12 years

25.39 million per season for 13 years

 

If he goes short term he gets the highest average annual value contract in the history of the sport by a pretty good margin. If he goes long term he gets the highest amount of dollars in the history of the sport, by a pretty good margin.

 

No surprise that Boras went for the biggest overall dollar amount because that's been his method of operation.

 

Not bad money for a guy that has only been a 3.1 bWAR/fWAR per season player over the last three years. I've been critical so far about Boras' handling of Keuchel...time will tell if I am wrong on that one. But there is no question that Boras did an A++++ job here considering Harper's recent history which is solid but certainly not super-star level.

[clancyphile]

For what it is worth, PA state income tax is a flat 3ish percent, regardless of income level, while CA has a base rate of 7.25 percent and a top marginal rate of over 12 percent....just comparing CA's base rate to PA at a $25M annual salary, it's a $1M plus annual savings for Harper to get his paychecks from a pennsylvania workplace.

 

He is already used to living on the east coast half the year, moving from DC area to philly is actually a cost savings, too...not that he really needs it anymore!

 

City of Philadephia has a wage tax. 3.88%

 

So, he lives in one of the counties around Philly instead. Or a nice domicile in Delaware (NO income tax).

[trwi7]

For what it is worth, PA state income tax is a flat 3ish percent, regardless of income level, while CA has a base rate of 7.25 percent and a top marginal rate of over 12 percent....just comparing CA's base rate to PA at a $25M annual salary, it's a $1M plus annual savings for Harper to get his paychecks from a pennsylvania workplace.

 

He is already used to living on the east coast half the year, moving from DC area to philly is actually a cost savings, too...not that he really needs it anymore!

 

City of Philadephia has a wage tax. 3.88%

 

So, he lives in one of the counties around Philly instead. Or a nice domicile in Delaware (NO income tax).

 

It doesn't matter if Delaware has no income tax. His income is going to be earned in Pennsylvania mostly.

[Fear The Chorizo]

Unless the Phillies move their headquarters outside of Philadelphia proper, Bryce will get his paychecks from a company within Philly city limits and will therefore be required to foot that city's wage tax and pay Penn state taxes...although it wouldn't surprise me that part of Philly's draw to Harper was its proximity to DC, where he's undoubtedly developed a local social circle and is comfortable living in that part of the east coast during the baseball season.

 

$330 Million guaranteed would make me comfortable living in Siberia for 6 months out of the year, who am I kidding!

[brewcrewdue80]

Not sure why some find this deal odd. If I was in Harper's situation I would absolutely take this deal that guarantees me a third of a billion dollars (plus marketing money in a major metropolitan area where he will be the biggest star) and piece of mind that I will never have to go through free agency again. He's set for life and can just focus on his playing.

 

It's also much better than 10/$300. Are either Harper or Machado likely to land a $30+ million plus contract in their late 30s?

 

10/300=30per

13/330=~25.4per.

 

That's 4.6mil a year less. I gave 4.5mil a modest 6.5% return if invested over 10 years. What is 45mil base at the 10year mark becomes $64,872,836. On that modest return he'd only need 10mil? over the next 3years signed to earn 330mil. But you know, he didn't go to College so maybe he has zero sense when it comes to investing. Pay a guy to do it for him.

10y/$300M plus 3y/$0 = 13y/$300M

 

I'll take the 13y/$330M over that every single time. No investment tricks necessary.

 

It is strange to assume he doesn't already have a well established investment strategy in place though. He's been in professional baseball since 2010.

 

It's sorta a knock that he took a 25.4mil AAV deal over the 10/300 supposedly offered by the Nats. 330>300 right? But 30>25.4 A basic Mutual fund and time value in money he's losing out on the 10/300 deal vs this one. David Ortiz made 16mil each of his final two seasons, I put a small return over 10years investing that difference and he needs 10mil+ over the 3 years following the 10. 6.5% return. They suggest plan for 8% return. Aggressive long term mutual seeing as he's so young he should be seeing 10+% return on mutual funds long term. It's the kind of difference that good returns and he's retiring with buying a large stack in a team vs less of a stake for an example.

[Fear The Chorizo]

It's sorta a knock that he took a 25.4mil AAV deal over the 10/300 supposedly offered by the Nats. 330>300 right?

 

From what I've read, about $100 Million of the Nats' offer was incredibly deferred - like still paying Harper a few million here and there when he was approaching 60 yrs old. the assumed $30M AAV for the Nats' offer is bogus - in reality it was more of a $20M AAV plus a nice pension sweetener down the road.

[502 to Right]

Excellent article by Tom Verducci:

 

https://www.si.com/mlb/2019/03/01/bryce-harper-philadelphia-phillies-contract-scott-boras

[stalton]

That was a great article. I'm not the biggest fan of Boras but I give him credit to getting the contract. It's fictional but I get the comparison of Bebe from Frasier. Not liked personally, willing to hold out to the end, but respected in his field and gets the job done. A couple things jumped out at me. They called Philly competitive, though they did preface that with the money to stay competitive. Also Boras stated the analytics were there to show that Harper will be elite well into his 30s despite not having the current analytics to show his current awesomeness. I admire Harper for wanting to stick with one (more) team. A rarity it seems these days.

[MrTPlush]

For what it is worth, PA state income tax is a flat 3ish percent, regardless of income level, while CA has a base rate of 7.25 percent and a top marginal rate of over 12 percent....just comparing CA's base rate to PA at a $25M annual salary, it's a $1M plus annual savings for Harper to get his paychecks from a pennsylvania workplace.

 

He is already used to living on the east coast half the year, moving from DC area to philly is actually a cost savings, too...not that he really needs it anymore!

 

City of Philadephia has a wage tax. 3.88%

 

So, he lives in one of the counties around Philly instead. Or a nice domicile in Delaware (NO income tax).

 

If you work in Philly, you work in Philly. It is like when he goes and plays the Marlins. He is subject to those taxes.

[SRB]

Philly >>> San Diego unless you want to live on a military base or in a zoo

You quite obviously have never been to San Diego

 

Haven't lived there, but I've been to San Diego several times. Philadelphia is a much more interesting city than San Diego, unless you're afraid of snow.

[Ennder]

There is no significant monument in US history that is more disappointing than the liberty bell though, that counts against them.

[reillymcshane]

Philly >>> San Diego unless you want to live on a military base or in a zoo

You quite obviously have never been to San Diego

 

Haven't lived there, but I've been to San Diego several times. Philadelphia is a much more interesting city than San Diego, unless you're afraid of snow.

I've found that every city has its charms. As well as sucky things. I was in SD last fall and had a great time. Beautiful weather. People were nice. The food and beer scene is wonderful. There are so many craft brew places - I loved it.

 

Never been to Philadelphia, so I can't speak about it.

[Tbadder]

I thought Machado was the better of the two based mostly on defense and positional superiority. It seems as if Harper is the riskier proposition given recent production. In any case I hope both give their respective teams reason to regret their decision.

[LouisEly]

There is no significant monument in US history that is more disappointing than the liberty bell though, that counts against them.

Have you ever been to Plymouth Rock?

[Eye Black]

One thing that makes this contract seem like forever is the fact that this year marks Ryan Braun’s 13th MLB season.

[MrTPlush]

One thing that makes this contract seem like forever is the fact that this year marks Ryan Braun’s 13th MLB season.

 

Even crazier, Braun debuted in his age 23 season and Harper hit FA and signed this contract to start in his age 26 season. Started at such a crazy young age.

[sveumrules]

Aaron Judge (April 26, 1992) is older than both Machado (July 6, 1992) & Harper (October 16, 1992).

 

Judge will be a free agent after the 2022 season.

[brewcrewdue80]

It's sorta a knock that he took a 25.4mil AAV deal over the 10/300 supposedly offered by the Nats. 330>300 right?

 

From what I've read, about $100 Million of the Nats' offer was incredibly deferred - like still paying Harper a few million here and there when he was approaching 60 yrs old. the assumed $30M AAV for the Nats' offer is bogus - in reality it was more of a $20M AAV plus a nice pension sweetener down the road.

 

If true than okay gives the deal more sense then.

[jerichoholicninja]

The length and total are absurd but about $25M a year seems like a good deal for the first 7 or so seasons. Even 10 years from now, a 36 year old Harper making $25M a season might not be such a disaster.