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Anonymous buyer purchases $2 million worth of Strawberry's salary - CBSSports.com
By Mike Axisa | Baseball Writer
January 21, 2015 2:30 pm ET
Didnt even know the IRS did this.
By Mike Axisa | Baseball Writer
January 21, 2015 2:30 pm ET
Given the present value of the deferred money on the $1.3 million sale price, the rate of return for the winning bidder is about 5 percent.
The total value of the contract, which covered his 1985 through 1990 seasons, was $7.1 million, but nearly 40 percent of his $1.8 million team option in 1990 ($700,000) was deferred and put into an annuity with a 5.1 percent interest rate.
That sure seems like a good long-term investment to me. The buyer paid $1.3 million now for a total of $2 million or so in 18 1/2 years. I'm certain the buyer put their accountant hard to work to make sure this made sense before pulling the trigger.
The total value of the contract, which covered his 1985 through 1990 seasons, was $7.1 million, but nearly 40 percent of his $1.8 million team option in 1990 ($700,000) was deferred and put into an annuity with a 5.1 percent interest rate.
That sure seems like a good long-term investment to me. The buyer paid $1.3 million now for a total of $2 million or so in 18 1/2 years. I'm certain the buyer put their accountant hard to work to make sure this made sense before pulling the trigger.
Didnt even know the IRS did this.
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