Keith Law Reports Tyrell Jenkins Signing
Posted on August 10th, 2010 by azruavatar in 2010 MLB DraftLaw has the signing at $1.3M. According to Baseball America, that would be nearly twice MLB’s recommended slot.
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15 Responses to “Keith Law Reports Tyrell Jenkins Signing”
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Nice. Seems like a steal to me.
More than most people expected I think. Of course if we go double over slot for Cox it will only be about $2 million.
Where is he headed to??? And when will he make is first start??
I’ve heard he is going to Johnson City, not sure when he’ll make his debut though.
To JC – joining the team late this week or early next week, unclear on when he will make his debut.
Wow. Thought 1mil might get it done. Not complainin’. . .just sayin’. . .
Alright Austin, you’re next. . .
Agreed on the first part. A little bit more than I thought it would take it to get done, but not overpaid by any means.
I wish I could share your optimism Shanky on Wilson.
I guessed $1.4M multiple times and thought it would be no less than $1.2M. So I was pretty darn close. Regardless I think this is a nice signing and gives our system upside if nothing else.
Exactly. Even if he doesn’t pan out, the fans can’t bash the Cardinals for not trying. A big projectable right handed starting pitching prospect with a good fastball and under developed secondary stuff likely as a result of not focusing on baseball alone.
It’s exciting to have an athlete like this in the org. If he makes it to the varsity, he could be in almost every game as a pinch runner.
For other “nerdy accountant” types like myself, the key here is that he is a two sport athlete. As such, his bonus can be spread over 5 years (and probably will be). Depending on your “interest rate” assumption the time value is probably a bit less than $1 million.
What year are you living in :) You’d have to have an interest rate of over 10% to get to a million for the NPV of that sum (assuming equal payments over 5 years). With a more reasonable (and 2010 likely interest rate of 5%) the NPV is about 1.17 million.
That’s it we will have to spreadsheet duel over this. I think the interest rate to use is the Cards incremental borrowing rate on their debt which given the timing of the stadium funding (’2006ish) has got to be at least 8% and probably more. 1.3M is rounded so we can wait until the number come out to actually figure exactly how much over slot they are, but there is certainly benefit to spreading the pain over 5 years vs. paying it upfront and I think that is the main point here is we are not looking at an apples to apples on the numbers as compared to “normal” signing bonuses.
Oh, god, there are going to be slide rules implied soon, aren’t there?
Employed, not implied. Good lord, what is wrong with me lately?