"Player to Be Named Later or Cash"

Whenever I have a question about the intricacies of the sports business, Peter Abraham of the Boston Globe is always extremely helpful and timely in clearing things up (my previous letter from the reporter can be found here).  Today I asked Peter about a looming question I've always had about trades like that with the Colorado Rockies for Franklin Morales.

Red Sox Beat Writer Peter Abraham appearing on a NESN interview

Me: Could you please explain how a "player to be named later or cash" deal works?  How can a trade be made with such uncertainty?  If Morales pans out, couldn't the Rockies later on just say, "Actually, we want a better player or more cash than you're willing to offer"?  There must be some standards or rules governing this that I'm completely missing.

Peter Abraham: No, they set the terms beforehand. They either get to choose from a list of players predetermined or the cash.

For more up to the minute Red Sox news, check out Peter's Boston Globe blog Extra Bases.  Being 4,000 miles away from NESN and ESPN, I regularly check in for his in-game play-by-play of every single Sox game.  Thanks Peter!

"Player to Be Named Later or Cash"