Wed Apr 15, 2020 12:16 am
"Before we proceed any further, I brought up the issue of penalties for going over the salary cap on the chat thread. I think we need to settle this question before going on with the salary contracts. The reason is there is a great risk of going over the cap through arbitration losses if you are not very careful to budget for bad outcomes. Paul has given us a good example with his contract proposals. He has five players up for arbitration if we include Flaherty: three are arb 1 and two are arb 2. If Paul wins all five he will have to pay $12 million (3 x $2 mil, 2 x $3 mil) for all five players. If he should lose any he would have to pay much more than $12 million. Let's assume he takes Flaherty to arb (unlikely to produce another $8.3 mil card, right?) and loses because the guy produces a $10 card, and on top of that loss Trey Mancini helps get the O's to the playoffs by producing a $9 card. Carantini, Candelario, and Margot produce a $2, $4 and $5 card. Now Paul will need to pay $30 mil in arbitration.
These arbitration decisions are settled AFTER the free agency period, so where as Paul thought he had $35 million to spend on 6 free agents, he might only have $5 million in a worse case scenario! If he spends $20 million in free agent signings and then gets stung with $30 million in arbitration decisions, he will be around $15 million over the salary cap.
This brings me back to my original question. What should the penalty be? You can see how going over may become a problem if we all don't manage our caps very conservatively.
Please take your thoughts on this back to the chat thread and let's see if we can hash it out."
Phil
One thing about this, it's not like anyone should be totally shocked by how much their arbitrated players will end up costing. We'll know how they did and with all the strat experience in this league we should be able to come up with a reasonable estimate for each team regarding how much cap they are going to have to save for their arbitrated players. I'd rather see us help each other out a little bit this first year and try to avoid people going over the salary cap. With that in mind, I agree with others who have said the penalty for going over should be harsh.