Aroldis Chapman about to incur multi-million dollar tax liability

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Sharp observation by ESPN’s Jorge Arangure, Jr.:  If Aroldis Chapman doesn’t sign a deal and receive his bonus by Thursday at midnight, he’s going to get a multi-million dollar tax bill that he could have totally avoided.

Why? Because, Arangure reports, signing bonuses that are received outside the U.S., by a non-U.S.
resident, and in a tax year in which the person did not work in the
U.S., are not subject to U.S. taxation.  Chapman currently lives in tax-free Andorra. He hasn’t pitched in the U.S. Thus, any money he makes in 2009 can’t be taxed in the U.S. He will, however, work in the U.S. in 2010, so he will be subject to U.S. taxation on all earnings after the first of the year regardless of where he lives.   If, as expected, he gets tens of millions of dollars, that’s going to be a several million-dollar tax bill.

Arangure’s source on this, agent Joe Kehoskie, says “As far as I’m aware, neither the Hendricks brothers nor Rodney
Fernandez (who represent Chapman) have ever completed a contract for a
foreign free agent, so I bet this issue flew right under their radar.”

Maybe. But it may simply be that the market just hasn’t developed for Chapman like everyone thinks it eventually will, and that rushing to save a couple million in taxes now could cost him several more million in the value of the contract he ultimately signs.

Still, somewhere, the agent that Chapman fired to sign with the Hendricks brothers is smiling. And amending his lawsuit to claim that if he were still representing Chapman, he would have imposed a December 31st deadline to all interested clubs in an effort to avoid the bill.

The Marlins are “willing to engage” on trade talks for Giancarlo Stanton

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Jon Morosi hears that the Marlins are “willing to engage with other teams” on a possible Giancarlo Stanton trade.

As we noted yesterday, Stanton has cleared revocable waivers, so he’s eligible to be dealt to any club. The price for Stanton is likely to be high given that he’s enjoying a career year, batting .285/.376/.646 with a league-leading 44 home runs and 94 RBI in 116 games this season. He’s also, obviously, the cornerstone of the franchise.

You also have to assume that anyone looking to acquire Stanton would want the Marlins to chip in money on his $285 million contract. If not, someone might’ve simply claimed him on waivers with the hope that the Marlins would simply let him walk, right? Which suggests that any negotiation over Stanton would be a long and difficult one. It might also involve Stanton agreeing to restructure his deal, which currently gives him an opt-out after the 2020 season. That would likely involve the MLBPA as well, which just makes it all the more complicated.

I think it’s a long shot that the Marlins would trade Stanton in-season, but it’s not hard to imagine him being traded this winter.

Jered Weaver announces his retirement

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Jered Weaver, a 12-year big league veteran and a three-time All-Star, has announced his retirement.

Weaver was struggling mightily with the Padres this year, going 0-5 in nine starts and posting a 7.44 ERA,, a 2.6 BB/9 and 4.9 K/9 ratio over 42.1 innings. He hadn’t posted a sub-4.00 ERA since 2014 and his velocity had, quite famously, sunk into the low 80s and even high 70s at times in recent seasons. A spate of physical setbacks contributed to that, with a hip inflammation ailing him this season and nerve issues in his neck and back afflicting him for the past few years.

But even if his recent seasons have been less-than-memorable, it’s worth remembering that he was, for a time, one of baseball’s best pitchers. He posted a record of 131-69 with a 3.28 ERA in his first 9 seasons, leading the American League in strikeouts in 2010 and leading the circuit in wins in 2012 and 2014. He likewise led the league in WHIP and hits allowed per nine innings in 2012.

He finishes his career with a record of 150-98, an ERA of 3.63 (ERA+ of 111) and a K/BB ratio of 1,621/551 in 2,067.1 innings. He pitched in four American League Division Series and the 2009 ALCS, posting a 2.67 ERA in seven playoff games pitched.

Happy trails, Jered. A first-ballot induction into the Hall of He Was Really Dang Good, Even if We Forgot About It For A While is in your future.