Comments: One, Two, Many Jason Giambis

"Will there be a settlement? Would that mean the Yanks will just write him a check for $50 million?"

I would assume there's some kind of liquidated damages clause in the contract addressing what happens if he can't play, i.e., it wouldn't provide for the full amount. Moreover, I would also assume the club's general liability insurers would be on the hook for at least some of this, i.e., Steinbrenner wouldn't have to eat the whole loss (although he might prefer to fight Giambi in court than the insurance companies).

"That’d make for a hell of a luxury tax bill."

Luxury taxes are sales taxes, so I don't see how they're involved here. Of course, yes, Uncle Sam would take a deeper cut in income taxes out of a one-time payment than out of Giambi's salary had it been paid over multiple years.

Posted by Dave J at December 7, 2004 10:37 AM
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