[QUOTE]Originally posted by itsinthegame:
"1) You cannot make that statement with any validity without knowing what would be taken away in the "out years" in return for the upfront bonus. You can only speculate."
Taken away in the "out years"? First of all he signed for at least $2 million/year less than he could have gotten either through arbitration or Free Agency so to think he would have had to make even more concessions to get even a modest Signing Bonus is wrong.
"2) I dont see how you could make that statement without knowing what Mr. Hallady's personal reinvestment rate assumption is."
I'm assuming it's greater than zero therefore it's indiputable that he would have made something on the investment of his money had he gotten anything in a Signing Bonus to invest.
"3) I dont consider dodging US income taxes as the right thing to do."
Are you serious? It's not only the reason for the entire accounting industry but it's practically a national obsession to pay as little tax as possible.
"4) Social Security taxes are not even a rounding error for Mr. Halladay."
Soc. Sec. is 3.3% so if he would have gotten only half the Bonus he should have gotten i.e. $2 million he would save a mere $66,000. Might not be much money to you, but I'd rather see it in my clients' pocket if possible.
If you look at similar deals it's obvious that he should have gotten $4-5 million to sign. So when you add the savings on the Soc. Sec to what he could have gotten if he would have only put the Bonus into a Savings Account he obviously cost himself some significant money AND had to pay Landry for costing him the money on top of it. Like I said, a bad deal any way you slice it.