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thewhyteboar

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Just now, Biggie said:

Can’t tell if you’re serious.  But if so that would be a huge pick up. 

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While it hasn't been finalized as of this writing, the various sportsbooks and essentially every national MLB expect the San Diego Padres to trad...

 

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1 hour ago, thewhyteboar said:

All the rumors have Ohtani going to the Blue Jays.


Better happen, because everyone has literal Blue Balls from all the rumours flying today. Michelin Star Sushi restaurant was apparently rented out by Kikuchi for 50 people. Watching a private plane flight outta L.A. - Toronto, but it was for Robert from Shark Tank. If it happens, the city will go fucking nuts and his Face will be on everything up here soon.

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2 hours ago, Dodger said:

$70 million a year for a fucking DH lol we’re so fucked and not winning anything again in my lifetime


 

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I’m going to explain why Shohei Ohtani’s $700 million contract with the Los Angeles Dodgers will not equal $700 million in terms of MLB accounting or the present-day value of the deal.
 

When money in a contract is deferred, the competitive-balance tax number — the luxury tax — is discounted. With a source saying a “majority” of Ohtani’s contract is deferred, the discount could be significant. Typically, a CBT number is the average annual value of a deal — in this case $70 million. But depending on the size and length of the deferrals, Ohtani’s CBT number is likelier to wind up in the $40-50 million-a-year range, an enormous benefit for the Dodgers.
 

The deferrals also affect the net present value of the deal. There’s a rule of thumb across all walks of life: Money today is more valuable than money tomorrow, inflation being what it is. When you defer money, you’re taking less. The Dodgers are operating in an environment in which the prime rate is 8.5%. And with money today being so pricey, it lowers the present-day value of the deal by a significant margin.
 

Regardless, in the end, Shohei Ohtani will be paid 700 million US dollars by the Dodgers. It’s an obscene amount of money. It’s just going to be seen as less by the league’s accounting — and will allow the Dodgers to add even more around Ohtani as they try to win a championship.

I’m surprised by this loophole. If he is valued at $40-50m a year, this potentially allows the Dodgers to avoid the worst luxury tax penalties. I hope the Yankees use this bullshit to the fullest extent possible in the future. 

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Based on deferred comp, Ohtani’s AAV $46 million. This is extraordinary. Still the largest AAV (passing Scherzer’s $43.333) but the total outlay is $700 million over 10 years with all but $2 million annually deferred until after his contract is over.


 

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Shohei Ohtani will make $2M per year for the next 10 years, then $68M per year between 2034-2043.

 

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What Dodgers will owe Ohtani / Betts / Freeman...

'28 through '32 $4M (Freeman)

'33 $12M (Freeman & Betts)

'34 $80M

'35 $80M

'36 $81M

'37 $81M

'38 $83M

'39 $83M

'40 $84M (Freeman deferrals End)

'41 $79M

'42 $79M

'43 $79M

'44 $11M


Few thoughts:

 

1. all the deferred money by the dodger screams “I’m gonna sell this team and this shit will be someone else’s problem”. This team is basically deferring all the big players money. $84M owed in 2040. It’s bananas. 
 

2. don’t follow all this “Ohtani putting winning first”. Dude still costs $46M AAV which is the highest. This strikes me as some goofy mental gymnastics where he thinks giving Billionaires breaks will incentivize them to spend more money. Clearly he doesn’t pay attention to the US economy.

 

3. wonder if this offseason and signing for the dodgers, turns public perception against Ohtani. 

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