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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 537 |
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Owners suggest that the total future value of these payments should be expensed when the players are removed from the roster. Players suggest that the payments should be expensed as they are made. The economic truth calls for setting up a reserve equal to the expected loss from non-roster guaranteed contract expense...
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The size of the reserve would depend on the probability that each player with a guaranteed contract will be released and not have his contract picked up by another team.
3. Stadium Costs
Players suggest that the stadium rents are set to understate the profits of the baseball club and to move some profits to the stadium corporation that is owned by two of the baseball club’s owners...
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