Comments on: Random Thoughts http://www.sabernomics.com/sabernomics/index.php/2006/12/random-thoughts/ Economic Thinking about Baseball Sun, 09 Jan 2011 17:16:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David Stefanini http://www.sabernomics.com/sabernomics/index.php/2006/12/random-thoughts/comment-page-1/#comment-22084 David Stefanini Fri, 15 Dec 2006 05:37:56 +0000 http://www.sabernomics.com/sabernomics/index.php/2006/12/random-thoughts/#comment-22084 I think your right and Zito will get close to the same deal. Do you think the Mets will get Zito? Also I love the blog you guys have here. I was wondering if you would link my blog to yours and then I will do the same for your site. www.americanlegends.blogspot.com If you want to do this just write a comment on my blog with the URL to the homepage and the name you want me to put for the link. Thanks, David I think your right and Zito will get close to the same deal. Do you think the Mets will get Zito?

Also I love the blog you guys have here. I was wondering if you would link my blog to yours and then I will do the same for your site.

http://www.americanlegends.blogspot.com

If you want to do this just write a comment on my blog with the URL to the homepage and the name you want me to put for the link.

Thanks,
David

]]> By: David http://www.sabernomics.com/sabernomics/index.php/2006/12/random-thoughts/comment-page-1/#comment-21966 David Fri, 15 Dec 2006 00:16:30 +0000 http://www.sabernomics.com/sabernomics/index.php/2006/12/random-thoughts/#comment-21966 When you account for discounting, Matsuzaka costs a bit more. The Present Discounted Value (PDV) of the total cost of Matsuzaka, assuming he receives level end-of-month payments and a 5% interest rate, is $96.1 million. An annuity paid in monthly installments at the same interet rate for the same PDV would be $111.1 million, or $18.5 million a year. The PDV of a 6 year/$100million deal with equal monthly payments would be $86.5 million. Of course, if interest rates are lower, then the PDV of Matsuzaka's contract increases, and if they are higher, the PDV decreases. When you account for discounting, Matsuzaka costs a bit more.

The Present Discounted Value (PDV) of the total cost of Matsuzaka, assuming he receives level end-of-month payments and a 5% interest rate, is $96.1 million. An annuity paid in monthly installments at the same interet rate for the same PDV would be $111.1 million, or $18.5 million a year. The PDV of a 6 year/$100million deal with equal monthly payments would be $86.5 million.

Of course, if interest rates are lower, then the PDV of Matsuzaka’s contract increases, and if they are higher, the PDV decreases.

]]> By: David Pinto http://www.sabernomics.com/sabernomics/index.php/2006/12/random-thoughts/comment-page-1/#comment-21814 David Pinto Thu, 14 Dec 2006 18:28:42 +0000 http://www.sabernomics.com/sabernomics/index.php/2006/12/random-thoughts/#comment-21814 Thanks for the link! Thanks for the link!

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