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This is kind of a cool idea:  You can buy a piece of a ball player for a percentage of his future major league earnings.


This particular case is a AA pitcher for the Indians, Randy Newsom.  He's selling 4% of his future major league earnings for $50,000 (or smaller fractions down to $20/share).

That'd be fun to have, although the odds of that becoming a good investment are slim.  Newsom is current 25 and his K and K/BB are quite ordinary.  But as a submariner he does keep the ball in the park.

Is there a chance he could make the majors?  Certainly.  Is he likely to be in the big leagues for a long time?  I doubt it.

In order to break even on the deal Newsom would have to remain in the majors for about 3 full seasons.  Assuming he made the $400,000 the full 4% payout would be $16,000.  Over 3 years that'd be up to $48,000 which just about puts you at the break even point.

But if you did that for Scott Downs several years ago (assuming it was available) it would have paid off quite handsomely!

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melondough - Friday, January 25 2008 @ 06:20 PM EST (#179362) #

That's a novel idea indeed.

If I had done this with Russ Adams, I could have taken advantage of it by using the loss to offset some of my capital gains from the past three years!

Dave Till - Friday, January 25 2008 @ 07:05 PM EST (#179367) #
With my luck, if I'd bought a piece of a ballplayer, I'd've gotten Mike Sirotka's shoulder.
CaramonLS - Friday, January 25 2008 @ 09:20 PM EST (#179370) #
Wow, if only Travis Snider did this.
TimberLee - Saturday, January 26 2008 @ 01:43 PM EST (#179384) #
So, does that mean that we could give him $1,250,000 and get his total career earnings? Cleveland management could save a bundle if they thought he had a future. I must be missing something - what would be the point of Newsom extending his career once he had that much in total salary  as any further earnings would benefit only his shareholders?
Original Ryan - Saturday, January 26 2008 @ 02:47 PM EST (#179387) #
So, does that mean that we could give him $1,250,000 and get his total career earnings?

Only 4% of his major league salary is up for sale.  The other 96% belongs to him (and the government).
CaramonLS - Sunday, January 27 2008 @ 10:35 PM EST (#179423) #

Since this is a notes from Nowhere:

http://www.tsn.ca/mlb/news_story/?ID=228349&hubname=

Bedard apparently dealt to the Mariners, with the key piece being Adam Jones.

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