In Excel, the syntax works like this: =8+NPV(10%,9,10,11,12) where 10% is typical baseball salary inflation, and 8,9,…,12 represent a typical 5/$50m contract. The 8 represents the first year; the 9, 10, 11, 12 represent the future years adjusted against a 10% free-agency inflation rate.
Since free agency first began, it has averaged 10% inflation per year. This year has been down for many players (though not for Raul Ibanez, for example), but that's only a hiccup.
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One particular form of salary inflation, is found in roto keeper leagues — if available talent sinks, and cash rises, then you can and do see $20 J.D. Drews go for $30 or more – our gives a little primer on this concept.
There are times when you not only can pay $30 roto for J.D.
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