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- May 24, 2008
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The problem with these massive front ended deals is that they effectively work as a signing bonus to spark the interest of players.
Players/managers eyes light up when they see that a $450k player can earn $800k in one season (even if they earn less the following years), their managers/clubs entice them by selling to them that they can bank that $800k at the same marginal tax rate, and bank/invest/spend earlier than they could otherwise.
Same marginally yes but lose 47% of the extra $350k on top of that instantly
So $160k roughly.





