Rumor: Bogaerts has gone to San Diego – Minnesota Twins Discuss

1 hour in the past, Nashvilletwin stated:

$25MM a yr 11 years from now’s solely about $10-12MM in as we speak’s $s at most. Plus revenues/budgets/salaries will greater than double as properly over that interval, and by 2034 Bogaerts can be getting paid lower than a mop up reliever or a 3rd catcher.

The query for various house owners is just not annual money circulate; as a substitute it’s largely fairness worth progress coupled with ego. 

At 3.5% inflation (actual inflation over the past decade together with current brief time period spike is 3.1%) 25m as we speak is $17m in 2034. If todays inflation persists a decade, our international economic system will collapse and we’ll all revert to a Mad Max distopia.

whether or not MLB salaries observe their present progress pattern, I’m not good sufficient to forecast, however I gotta assume the P&L of the house owners will necessitate slowing progress in some unspecified time in the future.

I believe a great comparability is Capital Expenditure (which does fall beneath fairness as soon as it’s paid for). It’s the reinvestment again into the enterprise that’s greatest paid for by your money circulate, slightly than costlier financing choices like inventory issuance or debt.

Additionally needless to say each events know that the payback interval on the capital expenditure exceeds the helpful lifetime of the asset. Bogaerts is aware of he received’t be an all star SS, and possibly not a SS, possibly not within the MLB in 2034, and so does SD. The payback interval assumes greater income sooner or later to facilitate as we speak’s spend.