Max Scherzer’s seven-year, $210 million contract with the Nationals includes a huge amount of deferred money, making the present-day value of the deal significantly less than $210 million.
But don’t worry: He’s still getting paid a ton of money over the life of the contract, which is spread over the next 14 years and includes a $50 million signing bonus that the 30-year-old ace receives immediately.
MLB’s officially determined that the present-day value of the contract is $191.4 million and in terms of luxury tax purposes the average annual value is sat at $28.69 million.
O’Connor Davies’ sports and entertainment senior group manager Robert Raiola crunched the numbers and calculates that Scherzer will make $81,967 per MLB in-season day for the next 14 years. And assuming Scherzer is a Florida resident paying standard federal, state, and payroll taxes Raiola figures he’ll pocket around $118.4 million of the $210 million contract.