Ohtani a Dodger

rinkrat

Ixnay Uxday
Staff member
Arf Arf
Joined
Aug 17, 1999
Messages
236,841
AF20C125-CF3E-4C51-ADEE-258533F73E75.jpeg
 
My youngest son is a high school baseball player, loves the Angels and Ohtani, but is actually happy with the move and the contract as he thinks it will eventually lead to a salary cap in baseball, which is desperately needed to bring some much needed parity to the game.

Ohtani's $70 million per year contract is more than the entire payroll of the Orioles and A's last season. The Mets' payroll is over 6 times more than the A's.

Moreno was willing to spend money. The Angels payroll was 6th highest in the league. The organization is simply incompetent.
 
Will the Dodgers continue to be epic in the regular season, and crash out in the playoffs as usual? ;)

According to ESPN’s Jeff Passan, most of the $700 million in Ohtani’s deal is deferred and will be paid out after Ohtani’s 10-year tenure, Bobby Bonilla–style. Those dollars will depreciate due to inflation, which means the present value of the contract is less than $700 million—likely considerably less, though the precise parameters have yet to be reported. Average annual value is what counts for competitive balance tax purposes, but that AAV takes the time value of money into account. So Ohtani’s soft-cap hit won’t be as big as it would have been if no dollars were deferred and calculating his CBT figure was as simple as dividing 700 by 10.

 

Shohei Ohtani’s record-setting 10-year, $700 million deal includes a series of unprecedented deferrals, a person briefed on the terms told The Athletic on Monday.

In an effort to enable the Dodgers to continue spending around stars Ohtani, Mookie Betts and Freddie Freeman, Ohtani agreed to defer all but $2 million of his annual salary — $68 million of his $70 million per year — until after the completion of the contract. The deferred money is to be paid out without interest from 2034 to 2043.

The previously unreported deferrals were said to be suggested by Ohtani himself as the negotiations vaulted the figure towards $700 million, the person briefed on the terms told The Athletic. The deal is expected to soon be finalized.

The unusual structure is intended to provide the Dodgers additional cash flow and payroll flexibility. In the meantime, Ohtani continues to bring in big dollars elsewhere from endorsements and off-the-field ventures. Ohtani is believed to make $50 million per year annually away from the diamond, the person briefed on the terms told The Athletic.

The deferrals also give Dodgers extra freedom navigating the competitive balance tax, or luxury tax as it’s called. For CBT purposes, the expected average annual value on the contract is said to be closer to $46 million per year,

This rises to the level of the old Ilya Kovalchuk cap manipulation
 
If we can get Mitchrock to defer his salary, we might finally be able to trade him. :mhihi: ;)
 
I'm sorry I misled everyone. Dodger Dogs are not $58 they have now increased to $72
 
Back
Top Bottom