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Tuesday, January 23
Deferment issue could derail deal


OAKLAND, Calif. -- The Oakland A's have offered American League MVP Jason Giambi his purported asking price of $90 million for six years and even gone one better, bringing the amount up to $91 million in order to top Atlanta star Chipper Jones' recent contract, according to a story published in the San Francisco Chronicle.

 
Jason Giambi
First baseman
Athletics
 
 
2000 SEASON STATISTICS
AB R H HR RBI AVG.
510 108170 43137 .333

But matching the asking price and completing a deal are two very different things. Deferred compensation is now the issue, and it could be enough to derail what would be the biggest contract in Bay Area sports history. "The issue is not dollars," A's general manager Billy Beane told the newspaper.

"It's a matter of creatively getting this done. ... I hate to say we're at an impasse, because it sounds like we're knocking our heads against a wall, but it's kind of like 'If you're not going to do this, I don't know what else we can talk about.' "

Though Beane refused to discuss specifics, the A's apparently would like to defer as much as one-sixth of the deal, a total of $15 million, in what has become a common arrangement in big-money contracts. That, however, means that the A's -- rather than Giambi -- would gain interest on the deferred sum. In essence, then, Giambi would receive $12.5 million per season in present-day worth. "There are significant issues that remain," said Giambi's agent, Arn Tellem. "With respect to the last proposal, deferment is a serious obstacle to getting a deal done."

The A's are a low-budget team, and their position has been that they cannot afford to have one player's salary take up more than a third of the payroll. Giambi's stance throughout has been that while he is willing to accept less than market value to remain in Oakland, he doesn't want to be paid drastically less than other players of his stature.

"Jason's requests have always been in line for a player of his caliber," Beane said. "He isn't being unreasonable, absolutely."

Currently, Toronto star Carlos Delgado's four-year deal, which averages $17 million per season, is the benchmark for big-name first basemen. The contract does not include any deferred salary, and Delgado's agent, David Sloane, said his personal philosophy is to avoid deferred money unless the player pushes for it as a means to get a deal done. "There is too little advantage to the player with deferred money," Sloane said. "Say a baseball fan makes $200 a week, but is only paid $160 a week and gets the other $40 five years later. Well, that $40 is now going to be worth more like $27.50."

"(Deferment) reduces the amount paid out significantly, with a 25-year payment -- after which Jason will be 55 years old," Tellem said. "That makes the value of the deal dramatically less than what his peers are making. Jason has given the A's every break throughout his career, and he is willing to take less -- but not dramatically less."

Beane, who long has said he isn't optimistic and isn't pessimistic about coming to terms with the team's best player, now is leaning toward pessimistic. Asked if he believes a deal will get done before pitchers and catchers report four weeks from today, Beane said, "I don't see that happening."

Giambi wasn't available for comment, but last week he said that he felt good about the negotiations, though he thought that deferment issues might become a problem. Though Beane said no talks are scheduled at this point, Tellem said earlier this week that he plans to talk to the A's again next week, and last night he said that talks certainly have not broken off and that Giambi still wishes to spend the rest of his career in Oakland.

Giambi will make $4 million this season, the final one in a three-year deal, and he is eligible for free agency next winter.

The A's other top potential free agents, closer Jason Isringhausen and newly acquired outfielder Johnny Damon, have said that they are watching the team's negotiations with Giambi closely, because his status is likely to affect their decisions after the season. Isringhausen has been particularly adamant that he won't consider a long-term deal with Oakland unless Giambi is signed to a multiyear deal.

 


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