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Old 02-25-2019, 12:16 PM  
Direckshun Direckshun is offline
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Old 02-26-2019, 01:01 PM   #46
Chris Meck Chris Meck is offline
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Originally Posted by Chargem View Post
Well done for understanding the concept of sunk costs, seems to be lost on some. I think if you designated Houston as post June 1 then the cap saving is actually $15.5m, so it's practically the same cost to keep either one.
not really, though.

total cost to keep Houston: $21 million.

total coast to cut Houston and keep Ford: $24 million-ish.

You can only keep one.

'sunk cost' is only sunk if you move on from Houston. Just chalking it up as a loss as if it happens in a vaccuum is wrong. So, to keep Ford but cut Houston costs $24 million dollars.

To keep Houston, but tag and trade Ford costs you $21 million plus I suppose whatever you have to pay the high pick you get from the Ford Trade, so it's possible that overall you are at about the same place, financially, although it will be for two players, not one.

See what I mean?
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Old 02-26-2019, 03:24 PM   #47
Chargem Chargem is offline
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Originally Posted by Chris Meck View Post
not really, though.

total cost to keep Houston: $21 million.

total coast to cut Houston and keep Ford: $24 million-ish.

You can only keep one.

'sunk cost' is only sunk if you move on from Houston. Just chalking it up as a loss as if it happens in a vaccuum is wrong. So, to keep Ford but cut Houston costs $24 million dollars.

To keep Houston, but tag and trade Ford costs you $21 million plus I suppose whatever you have to pay the high pick you get from the Ford Trade, so it's possible that overall you are at about the same place, financially, although it will be for two players, not one.

See what I mean?
I don't understand, you're not disagreeing with the $7m being a sunk cost at any point in your analysis. The point is making the decision on the cost in the future, not the cost in the past.

The decision on keeping Houston is a $14m one. You have to spend $14m more to keep in him 2019. The first $7m is gone whether he stays or goes.

The decision on keeping Ford is a $15.7m one. You have to spend $15.7m to keep him in 2019 (short of some kind of LTC).
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