Thursday, August 11, 2011
Transacation fees and no-trade clauses
When a player signs a contract, the player will give a discount on the contract, in return for a no-trade clause. And if he waives the right to be traded, he gets a bonus. Basic economics here.
I agree with blogger Chass’ basic sentiment. Murray proposes that this becomes standard issue. Just like stocks are traded with transaction fees, so too would you give a player an automatic trade fee. Of course, this means there are no more no-trade clauses. I’m guessing a 5% bonus (on the remaining amount of the contract) for being traded sounds about right. But someone else can work it out.


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