@ndleo said:
From an article - The deferrals also aid Ohtani from a taxpayer's perspective. If he's not living in California by the time the lucrative checks kick in, he won't be subjected to heavy state tax.
As a CA taxpayer, I admire him for not enriching the leeches in Sacramento, both parties.
Crazy deal. Dodgers can load up in the next few years.____"**
Shows this was really a 10 year, $460 million dollar deal in today's dollars which still is higher than anyone has ever received in MLB per season or on a total contract basis but much different than $700 million dollars.
In the future, MLB should require contracts to be announced in their present value dollars so that the CBT number can be calculated easily for the media. If a player wants to defer payment of his contract, he still would be able to. Announcing this as a $700 million deal is just smoke and mirrors to make the agent look like he did an amazing job and lets Ohtani say he got the highest contract ever.
@CardGeek said:
Doesn't it just mean that they're going to get wrecked eventually? Like charging their credit card?
Unless he's the first in MLB history not to sustain future injuries after multiple surgery's my guess is 3-5 years of games during the contract he'll be on IL/DL Who knows though perhaps he will defy the odds if if they do hover near zero..
It's the singer not the song - Peter Townshend (1972)
From what I read, it will not hit the cap in 2034-2043 when he actually gets paid. The Dodgers have to place $44MM per year over the next ten years (2024-2033) in a deferred account for him. That money will have time to grow via investments getting closer to the $70MM per year. The funds are then released from 2034-2043 with no impact to the 2034-2043 cap.
@CardGeek said:
I don't think MLB has a salary cap.
Nor will they. The owners only in it for the money do not want it, the owners looking to win do not want it and the players do not want it. The only ones that do want it are a sub-set of fans called whiners.
It's the singer not the song - Peter Townshend (1972)
It's totally understandable why players wouldn't want it. Unless you look at it like, if one dude weren't making 70 million a year there would be millions to go to other players. Is Otani really worth 100 times a league minimum player? Even with an arm injury? How much would he be worth if he were healthy?
Owners in it for the money would do better with a cap.
Owners looking to win, well, if you're buying championships, are you really winning? Like, should anybody care if the championship is just something you can purchase? It's not really competitive when a few teams are absolutely stacked and most teams don't really have a star player.
Also, I keep hearing on TV people comparing Otani to Babe Ruth. Babe Ruth, who has impossible, unrealistic, numbers. Ruth is a guy who there isn't even a ton of video on. So much of what he did can never be viewed, looked back on. Ruth is credited with feats that defy the laws of physics. Is that really what Otani is?
@CardGeek said:
Also, I keep hearing on TV people comparing Otani to Babe Ruth. Babe Ruth, who has impossible, unrealistic, numbers. Ruth is a guy who there isn't even a ton of video on. So much of what he did can never be viewed, looked back on. Ruth is credited with feats that defy the laws of physics. Is that really what Otani is?
I thought the comparison to Ruth was ridiculous.
Ohtani is a special player, but with 2 arm surgeries and a knee surgery, does anyone think he will have a long career?
Especially if he is going to try to pitch when he comes back.
2013,14 and 15 Certificate Award Winner Harmon Killebrew Master Set and Master Topps Set
am i reading correctly that there will be no dead cap hit when the dodgers have to pay out the bulk of this deal next decade?
if so, then why arent the yankees, mets etc deferring all of their salaries to load rosters? Its just money, and they have tons of it and will make more with championships.
@craig44 said:
am i reading correctly that there will be no dead cap hit when the dodgers have to pay out the bulk of this deal next decade?
if so, then why arent the yankees, mets etc deferring all of their salaries to load rosters? Its just money, and they have tons of it and will make more with championships.
There's no future hit towards the luxury tax in the years they will be paying it because they are accounting for it in the present payrolls at $46M a year for 10 years. Time value of money/discounted present value.
It does appear that the Dodgers have some sort of tax advantage themselves over other teams because they are funneling the money required to secure the $680M through the insurance company also owned by the Dodgers brass. I don't know enough about this aspect to discuss it, but saw it mentioned in another article.
@craig44 said:
am i reading correctly that there will be no dead cap hit when the dodgers have to pay out the bulk of this deal next decade?
if so, then why arent the yankees, mets etc deferring all of their salaries to load rosters? Its just money, and they have tons of it and will make more with championships.
One reason they are deferring it is that the players want their money now. I bet you don't want your paycheck deferred for 10 years. Most people aren't in that type of position.
@craig44 said:
am i reading correctly that there will be no dead cap hit when the dodgers have to pay out the bulk of this deal next decade?
if so, then why arent the yankees, mets etc deferring all of their salaries to load rosters? Its just money, and they have tons of it and will make more with championships.
One reason they are deferring it is that the players want their money now. I bet you don't want your paycheck deferred for 10 years. Most people aren't in that type of position.
Does the Players Agent/Agency have to wait for their cut as well?
It's the singer not the song - Peter Townshend (1972)
Comments
There is also already a salary floor in that MLB league minimum is 720k a year.
If I could agree with this 1,000 times I would.
Seems pretty smart as he'll probably be back home in Japan for almost all of that, so no CAL taxes. Although the top Tax Bracket in Japan 45%
https://taxsummaries.pwc.com/japan/individual/taxes-on-personal-income
It's the singer not the song - Peter Townshend (1972)
**"____1948_Swell_Robinson Posts: 1,504 ✭✭✭✭December 11, 2023 4:06PM edited December 11, 2023 4:06PM
@ndleo said:
Ohtani defers $680M. WOW!
https://nypost.com/2023/12/11/sports/shohei-ohtani-deferring-massive-portion-of-700-million-contract/
Crazy deal. Dodgers can load up in the next few years.____"**
Shows this was really a 10 year, $460 million dollar deal in today's dollars which still is higher than anyone has ever received in MLB per season or on a total contract basis but much different than $700 million dollars.
In the future, MLB should require contracts to be announced in their present value dollars so that the CBT number can be calculated easily for the media. If a player wants to defer payment of his contract, he still would be able to. Announcing this as a $700 million deal is just smoke and mirrors to make the agent look like he did an amazing job and lets Ohtani say he got the highest contract ever.
Doesn't it just mean that they're going to get wrecked eventually? Like charging their credit card?
Wonder how much they might have to pay to insure that contract? That's still a thing right?
Unless he's the first in MLB history not to sustain future injuries after multiple surgery's my guess is 3-5 years of games during the contract he'll be on IL/DL Who knows though perhaps he will defy the odds if if they do hover near zero..
It's the singer not the song - Peter Townshend (1972)
Hopefully…this will blow up in Dodgers’ face!
Has anyone ever pitched for Dave Roberts that didn't have some sort of arm injury and miss significant time?
How much did it sale for is one of the funniest and most ignorant things I've ever heard.
Good question, does it effect the salary cap by deferring the money? if it does, I assume they are thinking the cap will be above $350M by then.
From what I read, it will not hit the cap in 2034-2043 when he actually gets paid. The Dodgers have to place $44MM per year over the next ten years (2024-2033) in a deferred account for him. That money will have time to grow via investments getting closer to the $70MM per year. The funds are then released from 2034-2043 with no impact to the 2034-2043 cap.
I don't think MLB has a salary cap.
Nor will they. The owners only in it for the money do not want it, the owners looking to win do not want it and the players do not want it. The only ones that do want it are a sub-set of fans called whiners.
It's the singer not the song - Peter Townshend (1972)
It's totally understandable why players wouldn't want it. Unless you look at it like, if one dude weren't making 70 million a year there would be millions to go to other players. Is Otani really worth 100 times a league minimum player? Even with an arm injury? How much would he be worth if he were healthy?
Owners in it for the money would do better with a cap.
Owners looking to win, well, if you're buying championships, are you really winning? Like, should anybody care if the championship is just something you can purchase? It's not really competitive when a few teams are absolutely stacked and most teams don't really have a star player.
Also, I keep hearing on TV people comparing Otani to Babe Ruth. Babe Ruth, who has impossible, unrealistic, numbers. Ruth is a guy who there isn't even a ton of video on. So much of what he did can never be viewed, looked back on. Ruth is credited with feats that defy the laws of physics. Is that really what Otani is?
.
I thought the comparison to Ruth was ridiculous.
Ohtani is a special player, but with 2 arm surgeries and a knee surgery, does anyone think he will have a long career?
Especially if he is going to try to pitch when he comes back.
am i reading correctly that there will be no dead cap hit when the dodgers have to pay out the bulk of this deal next decade?
if so, then why arent the yankees, mets etc deferring all of their salaries to load rosters? Its just money, and they have tons of it and will make more with championships.
George Brett, Roger Clemens and Tommy Brady.
There's no future hit towards the luxury tax in the years they will be paying it because they are accounting for it in the present payrolls at $46M a year for 10 years. Time value of money/discounted present value.
It does appear that the Dodgers have some sort of tax advantage themselves over other teams because they are funneling the money required to secure the $680M through the insurance company also owned by the Dodgers brass. I don't know enough about this aspect to discuss it, but saw it mentioned in another article.
One reason they are deferring it is that the players want their money now. I bet you don't want your paycheck deferred for 10 years. Most people aren't in that type of position.
This may be behind a pay wall for some of you. Forbes usually gives out 5 free articles a month.
.
https://www.forbes.com/sites/mikeozanian/2023/12/13/los-angeles-dodgers-fund-shohei-ohtani-700-million-contract/?sh=97d592c75ca4
Does the Players Agent/Agency have to wait for their cut as well?
It's the singer not the song - Peter Townshend (1972)