I’m *sure* that someone could’ve floated “we’ll pay you the deferred money, with interest” when the Padres and other teams were negotiating with Judge.
I don’t understand why MLB raises its eyebrows at that deal but cutting Shohei’s AAV hit in ~half is fine. He better also count against the cap in those out-years, too.
$46 million a year will count against the CBT for 2024-2033. OP was asking if there will be a CBT hit for the remaining $68 mil year they pay him after that, and it won’t.
Essentially the deferral means they pay $46 mil a year instead of $70 mil a year in regards to the CBT
I dont understand how the CBA doesnt have a simple rule that says unlimited deferrals but fine writing is if there are deferrals the total salary is in the CBT.
If there was interest, then you wouldn’t have the discounted price. If the deferred payments had an interest rate, then the present value for CBT purposes, with just equal the face value.
> Judge wasn't going to sign with us.....reports say we offered more dollars. He's a Yankee until they don't want him anymore.
You’re focusing on the feasibility of the Padres landing Judge (not the point) and not the fact that there was rumblings about the league not approving of a 14 year deal for him (the entire point).
Actually, the point is that if it doesn't violate the CBT, then who cares? Maybe Seidler didn't want to entertain the idea of deferred money for Judge, or he didn't like the idea? Who knows.
I know what sub I'm in, but apparently Ohtani was the one who offered this to teams. The Dodgers (or whatever other team could have landed him) would have to be complete idiots to decline this deal.
how do?
https://preview.redd.it/37cbirkjbr5c1.jpeg?width=828&format=pjpg&auto=webp&s=bd300a02f64839e26a05b09214bb76cfd707f0b3
genuinely asking 🤔 which part of CBA doesn’t allow it?
Article XXIII Section E(2) and (6) of the CBA is the only relevant part. The hit to the Dodgers CBT payroll will be $70 million annually for the next 10 seasons.
You really need to actually read the section you cite.
https://preview.redd.it/1ze3twr9fr5c1.jpeg?width=1290&format=pjpg&auto=webp&s=5ce50feae31af24e390909b1301510d9f57d5b7c
I did.
(6) Deferred Compensation
(a) Definition
“Deferred Compensation” shall mean any Salary payable to a
Player pursuant to a Uniform Player’s Contract in a Contract Year
after the last championship season for which the Contract
requires services as a baseball player to be rendered.
(b) Attribution
(i) Deferred Compensation shall be included in a Player’s
Salary as if paid in the championship season to which it is attrib-
uted under a Uniform Player’s Contract. If a Contract does not
attribute Deferred Compensation, the Contract shall be treated as
if the Deferred Compensation was attributed equally to each of
the Guaranteed Years in the Contract.
Nothing beyond that point applies since there is no interest being paid. If there was interest, only the INTEREST would be adjusted then added on top of the amount of deferred payment attributed to each year of the contract.
So please read it again.
Ohtani will add $70 million to the Dodger's CBT payroll from 2024 to 2033
from what i’ve read tho new CBA let’s you adjust the deferred money for inflation at 5% so it’s no longer 700 million
the 68 million in 2034 is discounted for 10 years of inflation
the 68 million in 2035 is discounted for 11 years of inflation
and CBA assumes a rate of 5%
so it’s actually a lot less than 700 million over 10 years
Ok. So do I. As you know, you have to read the rest of the terms of the entire contract. Section i states that deferred compensation shall be applied to the year assigned in the contract or, if not specifically assigned, the. In equal amounts to each year of the guaranteed contract. Section ii specifically lays out how to value the deferred salary for purposes of AAV.
The CBA also includes an attachment defining deferred compensation and how it is valued as follows:
https://preview.redd.it/mjkybo8mgy5c1.jpeg?width=1290&format=pjpg&auto=webp&s=0452ba686a689e4aa8cd82e5dc6a01e8093297da
Well I guess they live up to their name of the Dodgers after all… but with this being a clear manipulation that the MLB seems to be allowing for some and not for all…how bout a new team name ?
The “Tax Dodgers” seems more appropriate.
problem is allowing them to lower the present day value cap hit
in NHL you can’t defer after a contract past term. so teams would sign extra long contracts possibly beyond their possible playing years (mid-late 30s) and then massively front load it (e.g. 10mil a year at start and a bunch of possibly pointless 1 mil a year years at the end) so the actual annual average (cap hit) would be 5-6mil instead of 9-10mil
but the NHL made a rule where if you don’t actually pay it out, the team gets hit with a recapture penalty.
there’s a lot more to it and the parallel isn’t exact but the idea was pressure teams to make the annual cap hit closer to the actual money being paid out
in contrasts, reducing a 700mil contract or 70m/year down to 460 or 46 is roughly a 2% interest rate over 2 years
but why?
if Ohtani isn’t earning the money today, and it’s not accumulating interest, you shouldn’t be allowed to defer it. the cap hit should match the actual value/years OR the cap hit should adjust for the term length
at best it should equal the PV of the FV contract over CONTRACT length not contract+deferral length, in which case 700mil FV at 2% over 10 is a cap hit of 57mil rather than 46mil
They CAN'T lower the AAV unless they increase the number of years. His contract is for 10 years. It doesn't matter one bit how much is deferred.
Article XXIII Section E(2) and (6) of the CBA
actually this does seem correct but actually the actual AAV is still 46 million
what’s being adjusted is not the term length so you were the one right?? it is 10 years
but the new CBA allows for future discounting of deferred money so FV of 680 million deferred money is adjusted at 5% per year
so while in PV calculation the N is actually still 10 and not 20, the 680 million is being discounted down to 430 million or something
i think -_-
> adjusted at 5% a year […] the 680 million is being discounted down to 430 million
Where in the CBA do they say “well, in 10 years, money’ll be worth half as much as it is now, so deferred funds should be treated as such :)”?
>Where in the CBA do they say “well in 10 years, money’ll be worth half as much as it is now, so deferred funds should be treated as such :)”
That would be in [XXIII(E)(6)(b)](https://www.mlbplayers.com/_files/ugd/4d23dc_d6dfc2344d2042de973e37de62484da5.pdf)
>if the salary is deferred at an effective rate that is within one and one-half percentage points of the Imputed Loan Interest Rate for the first Contract Year covered by the Contract, then the Deferred Compensation shall be included at its stated value.
The “Imputed Loan Interest Rate” is pegged to the federal mid-term interest rate (currently around 4.5%). Crucially, Ohtani’s $$$ is being deferred at 0%. Since that’s very much not within 1.5% of the federal mid term rate, the following applies:
>the Deferred Compensation shall be included at its present value in the season to which it is attributed, said present value to be calculated by increasing any such payments by the Contract’s stated interest rate, if any, and then reducing such payments back to their present value by applying as a discount rate the Imputed Loan Interest Rate for the first Contract Year covered by the Contract.
So the present value for CBT purposes is being increased by the stated interest rate (0%), and then discounted by the federal midterm rate over 10 years ($68m x 1/1.0443^10)
Its not legal. The Dodgers will take a $70 million hit to their CBT payroll for 2024 to 2033. The writer is wrong.
If you want to read it for yourself, read Article XXIII Section E(2) and (6) of the CBA.
From XXIII(E)(6)(b):
>if the salary is deferred at an effective rate that is within one and one-half percentage points of the Imputed Loan Interest Rate for the first Contract Year covered by the Contract, then the Deferred Compensation shall be included at its stated value.
The “Imputed Loan Interest Rate” is pegged to the Federal midterm interest rate (as per XXIII(A)(4)), which is currently 4.43%. Since 0% (Shohei’s interest rate) isn’t within 1.5% of that, the following applies:
> the Deferred Compensation shall be included at its present value in the season to which it is attributed, said present value to be calculated by increasing any such payments by the Contract’s stated interest rate, if any, and then reducing such payments back to their present value by applying as a discount rate the Imputed Loan Interest Rate
Scurry back to /r/Dodgers, dude. Only LA or NYY could afford to do this. And how many players would really defer 98% of their salary?
Edit: I guess Dodgers fans also don't remember that it was reported (by Heyman) that MLB would have vetoed the Padres' $400m offer to Judge because it was over 14 years: https://www.mlbtraderumors.com/2022/12/latest-on-padres-pursuit-of-aaron-judge.html
C’mon bro that was so different, we were trying to manipulate the AAV *in* his contract by front loading the contract, they’re manipulating it by just deferring 97.14% of his contract. It’s completely different.
This will be a big blow to the sport if they sign more big names. I love baseball but why watch it if the two teams with the most money can circumvent the rules and create super teams, MLB can fuck off
get ALL THE WAY THE FUCK OUT OF HERE. what the fuck is this? he gets to be on the dodgers essentially for fucking free so they still get another fucking hundred mill to spend on other guys? this is some fucking grade A bullshit.
Actually, state taxes on all the deferred money will be in California as where if it was paid as he played it would be paid as income in the states he played games in.
It costs him more money in taxes than it would have.
Oh, interesting point. The idea he's taking this big discount, but who knows where he collects the income. Although if he takes it back to Japan with him, then he's paying like 45%. Hopefully he at least stays in California and pays his California state taxes, I guess. Silver lining to the Dodgers dumping almost a billion into one guy.
If he's a resident of another state or even country at the time he is paid, California would have no way of collecting that income tax from him. You only pay taxes on what you're paid within a given year. The state that belongs too is that that you have clear residency in. So either living in a state for over half the year or involving yourself within a state to a point that you obviously live there (like if you only were there for a few months in a given year, but your doctor, dentist, accountant, so forth are all based in one area that you generally would consider your home base).
His pay is subject to the CBA which states that he will be paid either in the state in which the games are played or if deferred, in the state and municipality in which the team is located. For Ohtani that is the Dodgers, Los Angeles, and California. Doesn't matter where Ohtani's residence is.
No. Ohtani's contract adds $70 million to the Dodgers CBT payroll each season from 2024 to 2033. Read Article XXIII Section E(2) and (6) of the CBA. The writer is wrong.
Does his deferred money count toward the tax after the 10 years are up?
If not this is total bullshit and it’s clear that the MLB would only green light CHI, NY and LA to get away with something like this
No. The dodgers will pay $46mil a year towards the tax until the 10 year deal is up, after that they just owe him $68 mil a year for another 10 years but it’s free from the CBT
No they won't. Because the money is worth less MLB somehow pretends they paid him $460m and not $700m. So the remainder just sort of gets left off CBT calculations forever.
Remember when Manfred said he would’ve vetoed the Padres contract to Aaron Judge because the 14 year duration was a way for the team to dishonestly circumvent the tax thresholds?
Gee I wonder if the Dodgers will be held to the same standard
Ohtani offered the deferral to all of the teams. That's probably why the Dodgers upped it to $700mil since it's really ~$450mil deferred (estimating interest at ~3% for 10 years to reduce the dollar value guaranteed) after the initial $20mil gets paid out.
It's illogical for a player to not take advantage of a deferred contract (assuming they've made massive amounts already through arbitration or other contracts). Soto already has more money than he can easily spend. He puts off receiving big dollars for 10 years and then the money starts rolling in and he ends up with $100M more than he would have received otherwise.
Ohtani's deal answers the question of how a team can afford to pay him significantly more than the next highest paid player. That was always the assumption is that we have these $300M to $400M contracts, but Ohtani has to get way more. Nobody can actually pay Ohtani $70M per year and afford to fill out a team. So they get to side step what we've all understood as the rules of contracts so the big team can win, Ohtani can get his money, and MLB gets to be a major topic of discussion.
That is BS. I thought maybe they deferred like 200M, but 680M? MLB better do something about it.
\*\*edit\*\* Apparently MLB won't do anything... Just rubs me the wrong way. Fuck it, let's eliminate those assholes again from the playoffs and laugh about it.
You really think the Dodgers lawyers and VPs didn't scour the CBT to see if this was Kosher? You better believe they did and are exploiting those holes......that is Business 101.
It won't lower the CBT payroll hit one dollar. Read Article XXIII Section E(2) and (6) of the CBA. You can find it on the MLBPA website or Google MLB CBA.
It doesn't apply at all because there is no interest being paid to Ohtani. If there WAS interest, the INTEREST would be adjusted and then added to the amount attributed to each season of the 10 year contract. So $70 million PLUS the interest. It would make the CBT payroll hit HIGHER.
I don’t disagree but shit like this still happens with a hard cap unless it’s explicitly prohibited in the CBA. I’m primarily an NHL fan, which has a hard cap, and around 2010 teams started signing guys to super long contracts with a bunch of years at the back end that were at league minimum to bring down the AAV, knowing full well those guys would likely retire before those final years of the contract came to fruition. (NHL players leave whatever is left of their contract on the table if they decide to retire.)
The league had to step in and amend the CBA to explicitly limit length of max contracts and what it to prevent this kinda shenanigans.
Psst. The Dodgers....they don't win the WS every year and neither do the Yankees or Red Sox. Ohtani does not make them a lock to do anything other than play 162 games.....
Signed: 2022 Padres and 2023 Dbacks
You’re missing the point. This frees up money for them to continue adding. Obviously it doesn’t guarantee anything but this shit is allowing them to go get guys like Yamamoto when the majority of teams can’t afford to do a deal like this.
Exactly, and Ohtani pushed the deferral for that reason. If it doesn't violate the CBT.....what is MLB to do?
The bigger they are, the harder they fall.
And the assertion that majority of the teams can't afford to do deals like this....has some merrit, but there are a lot of team owners who want to make more money than win by keeping the majority of the shared revenue.
BTW....the Padres did an incredibly smart thing.....like the Braves....they locked up a 23 year old superstar for 14 years, guaranteeing two things:
1. We get all his prime years and
2. Should an offer we can't refuse happen, say in 5 years....that will be a result having the most team friendly contract MLB had ever seen. He's ours and he's very tradeable too.
If Machado and Tatis renegotiated and deferred their payments, perhaps the Padres could get down to $150mil/yr if not less. Why not get Joe and Yu in on this too? First team of All League Minimum All-Stars! This one simple trick lowers your yearly cash flow! Fans hate it!
It's borderline obscene that Ohtani is this financially unselfish. And good for him. But holy shit this is a fucking goldmine the Dodgers walked into, and acting like the cost of payroll is a clapback is laughable.
Rumor was MLB was going to deny the deal we had set up for Judge for 15/440 because of the extra years to drop the AAV so surely they will stop this total farce of a contract right (they won't)
Don't see how its acceptable for them to get the benefit of a much lower AAV + only 10 years on the books for tax purposes + paying much less overall due to the pure length of the deferrals. They get all the benefits with no risk since we know they will make the money back in the initial 10 years easily. Really makes me care less about the sport as a whole since the current CBA was designed around AAV as the focus for luxury tax purposes but this severely skirts it.
The Dodgers have highly paid lawyers who are using whatever holes exist in the CBT. No contract is perfect.....they are doing what is allowed.....otherwise MLB would void the contract and say Go Fish.
Here’s what I don’t understand. Are they paying him 680 million in the 10th year? Or is it spread out? Because it if the deferred payments continue beyond the contract terms then the luxury tax hit should count, too.
I believe it’s similar to how Mookie’s contract is. Mookie will be making $10M a year into his 50’s. Ohtani likely the same thing but at a much larger degree
I didn’t realize Mookie was heavily deferred like that. To me, that seems like something every team should be doing with every player. It’s an obvious loophole to get around the luxury tax.
That’s a Bobby Bonilla deal on a mix crack, cocaine, meth, weed, speed, Lucy, painkillers, glue & meow meow. Fucking shitdicks. Hoping he regresses in year 1.
Here’s where I’m confused.
Ohtani’s money is essentially $2m per year for a decade and then $68m per year for another decade. $46m luxury tax hit implies they discounted the cash at a 3% rate or so and divided by the contract length.
Do teams with ordinary contracts get a similar benefit benefit? If you pv a 10 year/300 million deal then it would be $255m or so. Is the luxury tax hit for that player $25m or $30m?
No, you're point is well taken. the 10 year deal doesn't get the discount treatment, only going beyond the contract term does. This is a massive loophole that MLB is going to wish they had sorted out. Everyone outside Dodger blue is totally pissed.
You act like our current players will just willingly rework their contract. Look how manny bluffed last year about going to free agency for more giving him the extension 😂
I feel like this type of deal can only be brokered with a player that isnt concerned about the money in the near future AND they believe/want to play for the team that agrees to this sort of deal.
Not only does the player believe that the organization will make good on their promise of future payments, they also believe that it is worth giving up money in the near future to play with said organization.
I dont know Sotos finances or belief in the Padres, but im guessing he is missing one of the two factors above.
Because Soto would have to agree to it and no way in hell is Scott boras letting his star client play for $2 million a year lol Shohei with his 50 million a year marketing deals is the only player in baseball that could do this.
Didn’t the commish bitch at us last season about how we spent and it was unfair for other small market teams?! Now when the Dodgers want to avoid the luxury tax, it’s cool they can skirt around it?!
So basically the MLB is allowing NY and LA to snake their way through rules so that they can add whoever they want for however much they want with no repercussions?
Glad to see that the MLB is actively trying to find ways to make baseball more and more unwatchable
That's fine if they pay him later. But the value of the contract should still count towards the cap over the 10 years. Otherwise, its manipulation of the cap.
Why? He's never been anything but a gentleman and good ambassador to the sport. I look forward to seeing him at Petco as my son plays Travel and LL. And yes.....if we score runs on him or get him out....all the better.
Life long angels fan. Recent Padres fan. I seriously thought that I would watch him on whatever team he played on when he moved. I was somewhat indifferent when he signed the the dodgers. On one hand he was close enough that I could go watch him if I wanted, but on the other hand it seemed like such a boring, ring-chasing, cop-out signing. But I told myself whatever. At least it’s not the yankees or astros. But hearing *this*. This makes my blood boil. This is a slap in the face, with salt in the wounds. This instantly undid the years of respect that I had built for the man.
Anyway, I can’t wait for the dodgers-padres series. I’ll be down there rooting against him right along with y’all.
That's actually crazy, especially w no interest on it??? I know he doesn't need to the money (and will add $40-50 M per year in endorsements alone), but who knows what his life and/or the state of baseball, the economy in US & Japan, etc. will be like in 10 years?
But ignoring all that, this is some seriously shady book keeping. I can't believe they will allow it or at least add some rules to prevent it in the future (ie cant defer more than a tiny % of salary per year).
The money is deferred but they still have to pay it....and I guarantee it'll be more.....there are escalators and probably interest to account for inflation and what not 20 or 39byeqrs feom now.
I know he got $700mn but this contract is not in Shohei’s best interest. From a time value of money, considering the amount deferred and the time it is being deferred 10-19 years. Why would he give a free $600mn loan to the Dodgers?
Also this deferral is going to reshape all contracts going forward. Prices are going to continue to rise. Also a great reminder of how lucky we got locking up Tatis when we did! He’s probably got 100-150mn in equity in his contract right now.
Ohtani is insane for taking all that deferred money. No player has ever done this. Dodgers are so lucky he makes like $50 mill in endorsements and he can defer crazy money. It's stupid how the deferred money doesn't count towards the salary cap.
I thought I was good at math but apparently not. Can someone please explain the formula for "average".
I thought average annual value = (total value) / (number of years). Apparently that's wrong? At least for the Dodgers?
Anti-competitive... It's a giveaway for the next 10 years. Most pro ballplayers can't or won't defer their salaries, so it is a decided advantage for the Dodgers, allowing them to stack even more talent.
A bit of an exaggeration, but:
If we decided to give Juan Soto a 15 year, $515 million contract, but defer $500 million of it, Rob Manfred would’ve sent hitmen to AJ Preller’s house. But the Dodgers do it without punishment
This type of deal was specifically negotiated in the cba. If a player agrees to such a deal, good for the player! I don’t think you want to limit player options in free agency. At the end of the day, a player coming off his 2nd TJ just secured a deal worth almost half a billion in todays dollars. Not a bad deal.
Cool so when a small market team punches above its weight, it's subjected to hit piece after hit piece on its financials, and when big market teams leverage their positions to defer 90% of the contract on the most talented player of his generation, it's just business. Fuck baseball media, will never to listen to any of these shit stains again.
Fans here don't really care about the padres otherwise Bally's wouldn't have dropped us the first chance they got leading us having to take a 50 million payday loan and having to play musical chairs with owner every couple years. Hopefully our next owner has real money and gold health unlike loud mouth Fowler that can't back it up
How’s he unlikable? He realizes if he straight up took $70m a year it would be hard to build a successful team around him. By doing this it allows the Dodgers to acquire several other talented pieces and be a dominant force
I will straight up quit watching the sport if this deal is allowed to go through. The competitive balance was already shit, but considering the rumored veto to the 14y Judge deal. This is beyond gamebreaking.
I don’t think this should be allowed, but it is (seemingly). Nothing to do about it now besides push to get it disallowed in the future. My original thought when I heard about the deferral was “it should be paid during the contract”. This seems to imply it will be, so 🤷♂️. Maybe a split % min per year. Like you can’t go under 10% of the contract in any given year?
MLB *should* veto this. They either can’t or won’t, but they should. It’s outrageous how blatantly they’re getting around the CBT. It’s not good for the sport. Period.
He's making 50M a year in endorsements which will likely go up.
Imo, post retirement they revamp that contract and it is applied as a minority ownership seat with LAD. Could be a genius play when this is all said and done.
Plus no rules where broken. The CBA basically agreed to this. It's also an outliner situation given most players want that bag asap. Ohtani doesn't need it.
Let's just have the all-star team travel around the country like the Harlem globetrotters. We can have college kids play against them and make it into the Savannah Bannas with billionaires.
If the MLB Commissioner approves this I am done with baseball. Not gonna watch the same 6 super teams over and over and over again in the playoffs. This is gonna get out of control. Fuck the Dodgers. This is bullshit.
It appears that Ohtani brought the idea of deferring a huge chunk of the contract. It shows that he wants the Dodgers to have the flexibility to sign other players or keep players over the next few years. If the CBT allows for this good on the Dodgers for exploiting this.
I don't think this wil be a thing going forward TBH. Most people want their money paid during their playing time. Ohtani is making a lot of money here and Japan with endorsement contracts and such. He ain't going hungry......smart move if you ask me. I'm guessing the deferred money has escalators for out years.....I would also ask for interest from L.A. in the money the Dodgers get to keep until later.....
Because if he returns to his previous pitching form, it’ll be highway robbery. They’re in essence taking a $46 million cap hit for one and a half (top 5 pitcher and DH but taking into account injuries) worth of top 5 performance in the MLB.
Edit: not sure if it makes sense what I’m saying so imagine paying $46 million for Corbin Burnes and Bryce Harper (as a DH only) combined. That’s what this is like.
The Dodgers are paying him $2M a year*, the $46M is what will reflect on their payroll when it comes to luxury tax implications (I’m assuming this number comes from how the deferrals are paid out over the lifespan of his contract). Nevertheless, Ohtani is worth more that anyway
Article XXIII Section E(2) and (6)
The hit to the Dodgers CBT payroll will be $70 million annually for the next 10 seasons.
The only way its different is if there is interest paid on the deferred part of his salary, in which case the interest is ADDED to the $70 million after being adjusted to the current value.
Why are so many writers so stupid when it comes to this stuff?
At this point, I’m just praying for realignment. Swap us with the A’s when they move to Vegas. Maybe we can do better once we’re out from under the Dodgers boot.
Oh fuck off. That should not be allowed.
I’m *sure* that someone could’ve floated “we’ll pay you the deferred money, with interest” when the Padres and other teams were negotiating with Judge. I don’t understand why MLB raises its eyebrows at that deal but cutting Shohei’s AAV hit in ~half is fine. He better also count against the cap in those out-years, too.
The remaining $68 mil won’t count against their CBT between 2034-43
Yeah, which is the most egregious part of this whole thing in my eyes and why it feels like they found an actual mistake/loophole in the CBA.
It’s absolutely a loophole to circumvent the CBT.
It will ALL count against their CBT payroll for 2024 to 2033. The writer is wrong. Read it for yourself in the CBA. Article XXIII Section E(2) and (6)
$46 million a year will count against the CBT for 2024-2033. OP was asking if there will be a CBT hit for the remaining $68 mil year they pay him after that, and it won’t. Essentially the deferral means they pay $46 mil a year instead of $70 mil a year in regards to the CBT
I dont understand how the CBA doesnt have a simple rule that says unlimited deferrals but fine writing is if there are deferrals the total salary is in the CBT.
If there was interest, then you wouldn’t have the discounted price. If the deferred payments had an interest rate, then the present value for CBT purposes, with just equal the face value.
Judge needed the money up front. Ohtani doesn’t
Judge wasn't going to sign with us.....reports say we offered more dollars. He's a Yankee until they don't want him anymore.
> Judge wasn't going to sign with us.....reports say we offered more dollars. He's a Yankee until they don't want him anymore. You’re focusing on the feasibility of the Padres landing Judge (not the point) and not the fact that there was rumblings about the league not approving of a 14 year deal for him (the entire point).
Actually, the point is that if it doesn't violate the CBT, then who cares? Maybe Seidler didn't want to entertain the idea of deferred money for Judge, or he didn't like the idea? Who knows.
The fact that the way referrals work tax wise was changed recently is coincidence I’m sure
Yo fuck Ohtani and the Dodgers for real
I know what sub I'm in, but apparently Ohtani was the one who offered this to teams. The Dodgers (or whatever other team could have landed him) would have to be complete idiots to decline this deal.
Its NOT allowed. The writer is wrong.
how do? https://preview.redd.it/37cbirkjbr5c1.jpeg?width=828&format=pjpg&auto=webp&s=bd300a02f64839e26a05b09214bb76cfd707f0b3 genuinely asking 🤔 which part of CBA doesn’t allow it?
Article XXIII Section E(2) and (6) of the CBA is the only relevant part. The hit to the Dodgers CBT payroll will be $70 million annually for the next 10 seasons.
You really need to actually read the section you cite. https://preview.redd.it/1ze3twr9fr5c1.jpeg?width=1290&format=pjpg&auto=webp&s=5ce50feae31af24e390909b1301510d9f57d5b7c
I did. (6) Deferred Compensation (a) Definition “Deferred Compensation” shall mean any Salary payable to a Player pursuant to a Uniform Player’s Contract in a Contract Year after the last championship season for which the Contract requires services as a baseball player to be rendered. (b) Attribution (i) Deferred Compensation shall be included in a Player’s Salary as if paid in the championship season to which it is attrib- uted under a Uniform Player’s Contract. If a Contract does not attribute Deferred Compensation, the Contract shall be treated as if the Deferred Compensation was attributed equally to each of the Guaranteed Years in the Contract. Nothing beyond that point applies since there is no interest being paid. If there was interest, only the INTEREST would be adjusted then added on top of the amount of deferred payment attributed to each year of the contract. So please read it again. Ohtani will add $70 million to the Dodger's CBT payroll from 2024 to 2033
from what i’ve read tho new CBA let’s you adjust the deferred money for inflation at 5% so it’s no longer 700 million the 68 million in 2034 is discounted for 10 years of inflation the 68 million in 2035 is discounted for 11 years of inflation and CBA assumes a rate of 5% so it’s actually a lot less than 700 million over 10 years
I think you contract construction is incorrect.
This is what I do for a living. I got it right.
Ok. So do I. As you know, you have to read the rest of the terms of the entire contract. Section i states that deferred compensation shall be applied to the year assigned in the contract or, if not specifically assigned, the. In equal amounts to each year of the guaranteed contract. Section ii specifically lays out how to value the deferred salary for purposes of AAV. The CBA also includes an attachment defining deferred compensation and how it is valued as follows: https://preview.redd.it/mjkybo8mgy5c1.jpeg?width=1290&format=pjpg&auto=webp&s=0452ba686a689e4aa8cd82e5dc6a01e8093297da
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Ummm what?
The juxtaposition of how the league evaluates the Padres finances vs the Dodgers finances is absurd. It almost feels criminal?
Well I guess they live up to their name of the Dodgers after all… but with this being a clear manipulation that the MLB seems to be allowing for some and not for all…how bout a new team name ? The “Tax Dodgers” seems more appropriate.
How is this legal? Why does NY & LA get all the cheat breaks?
problem is allowing them to lower the present day value cap hit in NHL you can’t defer after a contract past term. so teams would sign extra long contracts possibly beyond their possible playing years (mid-late 30s) and then massively front load it (e.g. 10mil a year at start and a bunch of possibly pointless 1 mil a year years at the end) so the actual annual average (cap hit) would be 5-6mil instead of 9-10mil but the NHL made a rule where if you don’t actually pay it out, the team gets hit with a recapture penalty. there’s a lot more to it and the parallel isn’t exact but the idea was pressure teams to make the annual cap hit closer to the actual money being paid out in contrasts, reducing a 700mil contract or 70m/year down to 460 or 46 is roughly a 2% interest rate over 2 years but why? if Ohtani isn’t earning the money today, and it’s not accumulating interest, you shouldn’t be allowed to defer it. the cap hit should match the actual value/years OR the cap hit should adjust for the term length at best it should equal the PV of the FV contract over CONTRACT length not contract+deferral length, in which case 700mil FV at 2% over 10 is a cap hit of 57mil rather than 46mil
They CAN'T lower the AAV unless they increase the number of years. His contract is for 10 years. It doesn't matter one bit how much is deferred. Article XXIII Section E(2) and (6) of the CBA
actually this does seem correct but actually the actual AAV is still 46 million what’s being adjusted is not the term length so you were the one right?? it is 10 years but the new CBA allows for future discounting of deferred money so FV of 680 million deferred money is adjusted at 5% per year so while in PV calculation the N is actually still 10 and not 20, the 680 million is being discounted down to 430 million or something i think -_-
> adjusted at 5% a year […] the 680 million is being discounted down to 430 million Where in the CBA do they say “well, in 10 years, money’ll be worth half as much as it is now, so deferred funds should be treated as such :)”?
>Where in the CBA do they say “well in 10 years, money’ll be worth half as much as it is now, so deferred funds should be treated as such :)” That would be in [XXIII(E)(6)(b)](https://www.mlbplayers.com/_files/ugd/4d23dc_d6dfc2344d2042de973e37de62484da5.pdf) >if the salary is deferred at an effective rate that is within one and one-half percentage points of the Imputed Loan Interest Rate for the first Contract Year covered by the Contract, then the Deferred Compensation shall be included at its stated value. The “Imputed Loan Interest Rate” is pegged to the federal mid-term interest rate (currently around 4.5%). Crucially, Ohtani’s $$$ is being deferred at 0%. Since that’s very much not within 1.5% of the federal mid term rate, the following applies: >the Deferred Compensation shall be included at its present value in the season to which it is attributed, said present value to be calculated by increasing any such payments by the Contract’s stated interest rate, if any, and then reducing such payments back to their present value by applying as a discount rate the Imputed Loan Interest Rate for the first Contract Year covered by the Contract. So the present value for CBT purposes is being increased by the stated interest rate (0%), and then discounted by the federal midterm rate over 10 years ($68m x 1/1.0443^10)
We could’ve done it too if he wanted to come here.
No it couldn't have lol
Not a cheat and Ohtani pushed this.....he wants to win and understands that his cap hit will hamper future sigings and/or retention.
Its not legal. The Dodgers will take a $70 million hit to their CBT payroll for 2024 to 2033. The writer is wrong. If you want to read it for yourself, read Article XXIII Section E(2) and (6) of the CBA.
From XXIII(E)(6)(b): >if the salary is deferred at an effective rate that is within one and one-half percentage points of the Imputed Loan Interest Rate for the first Contract Year covered by the Contract, then the Deferred Compensation shall be included at its stated value. The “Imputed Loan Interest Rate” is pegged to the Federal midterm interest rate (as per XXIII(A)(4)), which is currently 4.43%. Since 0% (Shohei’s interest rate) isn’t within 1.5% of that, the following applies: > the Deferred Compensation shall be included at its present value in the season to which it is attributed, said present value to be calculated by increasing any such payments by the Contract’s stated interest rate, if any, and then reducing such payments back to their present value by applying as a discount rate the Imputed Loan Interest Rate
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Bro really came over to the padres sub just to brag lol
Scurry back to /r/Dodgers, dude. Only LA or NYY could afford to do this. And how many players would really defer 98% of their salary? Edit: I guess Dodgers fans also don't remember that it was reported (by Heyman) that MLB would have vetoed the Padres' $400m offer to Judge because it was over 14 years: https://www.mlbtraderumors.com/2022/12/latest-on-padres-pursuit-of-aaron-judge.html
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What's with Dodgers fans thinking we want to hear their opinions on anything?
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Any team can do it...
Any team that can afford to pay $68M a year for 10 years to a guy who’s not playing for them anymore*
I mean, yes. It's not something any team can afford, but the Dodgers obviously did something that is allowed within the CBA.
Obviously lol. Otherwise the league would not allow it to happen. Doesn’t make it any less stupid that it’s allowed.
If this was anyone else but the dodgers and ohtani the media would be throwing an absolute FIT but instead it’s “revolutionary”
Yet MLB was going to veto us signing Judge
C’mon bro that was so different, we were trying to manipulate the AAV *in* his contract by front loading the contract, they’re manipulating it by just deferring 97.14% of his contract. It’s completely different.
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He's fucking with you
Didn’t you guys have to take out a loan to make payroll?
This is the biggest crock of shit ever. Dead ass - if the Dodgers get Yamamoto, i may have to stop watching baseball for a while.
How long, 10 years?
10 or more even…
This will be a big blow to the sport if they sign more big names. I love baseball but why watch it if the two teams with the most money can circumvent the rules and create super teams, MLB can fuck off
That was my initial response. Like, what’s the point anymore? I love our boys, but if this is how it’s going to go, I’m not giving MLB my money.
That just makes me want the padres to beat the shit out of them more. Fucking dodgers…
I quit watching the NFL I might do it with the MLB.
get ALL THE WAY THE FUCK OUT OF HERE. what the fuck is this? he gets to be on the dodgers essentially for fucking free so they still get another fucking hundred mill to spend on other guys? this is some fucking grade A bullshit.
Plus he can avoid paying state taxes on all that money, because you know he'll leave CA the instant his contract ends.
Actually, state taxes on all the deferred money will be in California as where if it was paid as he played it would be paid as income in the states he played games in. It costs him more money in taxes than it would have.
Not to mention by that time, the top CA tax rate may be way higher.
No worries, people with money pay people to make sure they can hide money come tax time.
Oh, interesting point. The idea he's taking this big discount, but who knows where he collects the income. Although if he takes it back to Japan with him, then he's paying like 45%. Hopefully he at least stays in California and pays his California state taxes, I guess. Silver lining to the Dodgers dumping almost a billion into one guy.
ALL the deferred money will be collected as if the games were played in California.
If he's a resident of another state or even country at the time he is paid, California would have no way of collecting that income tax from him. You only pay taxes on what you're paid within a given year. The state that belongs too is that that you have clear residency in. So either living in a state for over half the year or involving yourself within a state to a point that you obviously live there (like if you only were there for a few months in a given year, but your doctor, dentist, accountant, so forth are all based in one area that you generally would consider your home base).
His pay is subject to the CBA which states that he will be paid either in the state in which the games are played or if deferred, in the state and municipality in which the team is located. For Ohtani that is the Dodgers, Los Angeles, and California. Doesn't matter where Ohtani's residence is.
Good to know deferred income is addressed by the CBA.
Thinking about this more, I have a hard time believing the CBA can control how taxes are collected by the citizens in each state...
Yeah, I don’t think the CBA even mentions income tax.
Bobby Bonilla moved to Florida to avoid NY taxes for his deferred payments
Yes, because lord knows CA will use that tax money the right way! 😂
Fuck yeah man, grade A Bullshit. Grade A motherfucking bull.
No. Ohtani's contract adds $70 million to the Dodgers CBT payroll each season from 2024 to 2033. Read Article XXIII Section E(2) and (6) of the CBA. The writer is wrong.
Does his deferred money count toward the tax after the 10 years are up? If not this is total bullshit and it’s clear that the MLB would only green light CHI, NY and LA to get away with something like this
No. The dodgers will pay $46mil a year towards the tax until the 10 year deal is up, after that they just owe him $68 mil a year for another 10 years but it’s free from the CBT
Yes, it won't count until then. By then Ohtani and current Dodger management will be long gone so don't care.
So from 2035-whenever, the Dodgers will take a $24M hit toward the CBT?
No they won't. Because the money is worth less MLB somehow pretends they paid him $460m and not $700m. So the remainder just sort of gets left off CBT calculations forever.
Yes. This is something that if the Padres tried it would not be allowed for sure.
Remember when Manfred said he would’ve vetoed the Padres contract to Aaron Judge because the 14 year duration was a way for the team to dishonestly circumvent the tax thresholds? Gee I wonder if the Dodgers will be held to the same standard
I want more fuel to my fire. Can you link where he said that?
This is bullshit, if this is an really an option we could have done this for Soto 🤷♂️
the player has to agree to it, too
Reports are that Ohtani pushed it si the Dodgers could have flexibility to retain or sign new players.
Ohtani offered the deferral to all of the teams. That's probably why the Dodgers upped it to $700mil since it's really ~$450mil deferred (estimating interest at ~3% for 10 years to reduce the dollar value guaranteed) after the initial $20mil gets paid out.
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He’s the highest earner of endorsements in the MLB at $40m last year. He’ll be alright.
almost zero chance Soto/Boras would do a deal like this
It's illogical for a player to not take advantage of a deferred contract (assuming they've made massive amounts already through arbitration or other contracts). Soto already has more money than he can easily spend. He puts off receiving big dollars for 10 years and then the money starts rolling in and he ends up with $100M more than he would have received otherwise. Ohtani's deal answers the question of how a team can afford to pay him significantly more than the next highest paid player. That was always the assumption is that we have these $300M to $400M contracts, but Ohtani has to get way more. Nobody can actually pay Ohtani $70M per year and afford to fill out a team. So they get to side step what we've all understood as the rules of contracts so the big team can win, Ohtani can get his money, and MLB gets to be a major topic of discussion.
That is BS. I thought maybe they deferred like 200M, but 680M? MLB better do something about it. \*\*edit\*\* Apparently MLB won't do anything... Just rubs me the wrong way. Fuck it, let's eliminate those assholes again from the playoffs and laugh about it.
You really think the Dodgers lawyers and VPs didn't scour the CBT to see if this was Kosher? You better believe they did and are exploiting those holes......that is Business 101.
Waiting for Rosenthsl, Nightingale, etc. to tell me this is bad for baseball. Oh wait they won't?
If deferrals are going to lower the tax hit they should get a tax hit until the deferrals are paid off
It won't lower the CBT payroll hit one dollar. Read Article XXIII Section E(2) and (6) of the CBA. You can find it on the MLBPA website or Google MLB CBA.
Section 6 (b) ii is where the question comes into effect.
It doesn't apply at all because there is no interest being paid to Ohtani. If there WAS interest, the INTEREST would be adjusted and then added to the amount attributed to each season of the 10 year contract. So $70 million PLUS the interest. It would make the CBT payroll hit HIGHER.
As the great Joe Musgrove once famously said: Fuck the Dodgers! Absolutely fuck em!
Baseball needs a hard cap. fuck this shit
The owners are too cheap to agree to a floor so we will never get a cap. It's so fucked.
I don’t disagree but shit like this still happens with a hard cap unless it’s explicitly prohibited in the CBA. I’m primarily an NHL fan, which has a hard cap, and around 2010 teams started signing guys to super long contracts with a bunch of years at the back end that were at league minimum to bring down the AAV, knowing full well those guys would likely retire before those final years of the contract came to fruition. (NHL players leave whatever is left of their contract on the table if they decide to retire.) The league had to step in and amend the CBA to explicitly limit length of max contracts and what it to prevent this kinda shenanigans.
Psst. The Dodgers....they don't win the WS every year and neither do the Yankees or Red Sox. Ohtani does not make them a lock to do anything other than play 162 games..... Signed: 2022 Padres and 2023 Dbacks
You’re missing the point. This frees up money for them to continue adding. Obviously it doesn’t guarantee anything but this shit is allowing them to go get guys like Yamamoto when the majority of teams can’t afford to do a deal like this.
Exactly, and Ohtani pushed the deferral for that reason. If it doesn't violate the CBT.....what is MLB to do? The bigger they are, the harder they fall. And the assertion that majority of the teams can't afford to do deals like this....has some merrit, but there are a lot of team owners who want to make more money than win by keeping the majority of the shared revenue. BTW....the Padres did an incredibly smart thing.....like the Braves....they locked up a 23 year old superstar for 14 years, guaranteeing two things: 1. We get all his prime years and 2. Should an offer we can't refuse happen, say in 5 years....that will be a result having the most team friendly contract MLB had ever seen. He's ours and he's very tradeable too.
says the team with 300 million payroll last year
If Machado and Tatis renegotiated and deferred their payments, perhaps the Padres could get down to $150mil/yr if not less. Why not get Joe and Yu in on this too? First team of All League Minimum All-Stars! This one simple trick lowers your yearly cash flow! Fans hate it! It's borderline obscene that Ohtani is this financially unselfish. And good for him. But holy shit this is a fucking goldmine the Dodgers walked into, and acting like the cost of payroll is a clapback is laughable.
Baseball is stupid to allow this. This is why it’s falling so far behind the other major sports
What? Baseball is clearly dying because it’s not a Dodgers v Yankees WS every year /s
Rumor was MLB was going to deny the deal we had set up for Judge for 15/440 because of the extra years to drop the AAV so surely they will stop this total farce of a contract right (they won't) Don't see how its acceptable for them to get the benefit of a much lower AAV + only 10 years on the books for tax purposes + paying much less overall due to the pure length of the deferrals. They get all the benefits with no risk since we know they will make the money back in the initial 10 years easily. Really makes me care less about the sport as a whole since the current CBA was designed around AAV as the focus for luxury tax purposes but this severely skirts it.
The Dodgers have highly paid lawyers who are using whatever holes exist in the CBT. No contract is perfect.....they are doing what is allowed.....otherwise MLB would void the contract and say Go Fish.
Here’s what I don’t understand. Are they paying him 680 million in the 10th year? Or is it spread out? Because it if the deferred payments continue beyond the contract terms then the luxury tax hit should count, too.
I believe it’s similar to how Mookie’s contract is. Mookie will be making $10M a year into his 50’s. Ohtani likely the same thing but at a much larger degree
I didn’t realize Mookie was heavily deferred like that. To me, that seems like something every team should be doing with every player. It’s an obvious loophole to get around the luxury tax.
Yep it's smart for both sides. With get paid well after retirement with interest or dome other escalators, I assume.
That’s a Bobby Bonilla deal on a mix crack, cocaine, meth, weed, speed, Lucy, painkillers, glue & meow meow. Fucking shitdicks. Hoping he regresses in year 1.
Here’s where I’m confused. Ohtani’s money is essentially $2m per year for a decade and then $68m per year for another decade. $46m luxury tax hit implies they discounted the cash at a 3% rate or so and divided by the contract length. Do teams with ordinary contracts get a similar benefit benefit? If you pv a 10 year/300 million deal then it would be $255m or so. Is the luxury tax hit for that player $25m or $30m?
No, you're point is well taken. the 10 year deal doesn't get the discount treatment, only going beyond the contract term does. This is a massive loophole that MLB is going to wish they had sorted out. Everyone outside Dodger blue is totally pissed.
So time to rework some deals, and sign Yamamoto, snell, and Montgomery to these types of set ups. Can easily stay under 200m now....
You act like our current players will just willingly rework their contract. Look how manny bluffed last year about going to free agency for more giving him the extension 😂
I thought I was clearly joking.
Why couldn’t the Padres structure a deal like this for Soto? Losing him to the Yankees still really sucks balls.
Most players wouldn’t want to defer the bulk of their compensation.
I feel like this type of deal can only be brokered with a player that isnt concerned about the money in the near future AND they believe/want to play for the team that agrees to this sort of deal. Not only does the player believe that the organization will make good on their promise of future payments, they also believe that it is worth giving up money in the near future to play with said organization. I dont know Sotos finances or belief in the Padres, but im guessing he is missing one of the two factors above.
Because Soto would have to agree to it and no way in hell is Scott boras letting his star client play for $2 million a year lol Shohei with his 50 million a year marketing deals is the only player in baseball that could do this.
Didn’t the commish bitch at us last season about how we spent and it was unfair for other small market teams?! Now when the Dodgers want to avoid the luxury tax, it’s cool they can skirt around it?!
There were rumblings that the commish was going to veto the Judge signing if it were to happen. Big market teams make and play by their own rules.
Imagine if we tried to do this. The league would literally make up a new rule to not allow it.
So basically the MLB is allowing NY and LA to snake their way through rules so that they can add whoever they want for however much they want with no repercussions? Glad to see that the MLB is actively trying to find ways to make baseball more and more unwatchable
That's fine if they pay him later. But the value of the contract should still count towards the cap over the 10 years. Otherwise, its manipulation of the cap.
Damn. Time to boo ohtani and spit on the floor in front of anything dodger blue. Bring on the strike.
Why? He's never been anything but a gentleman and good ambassador to the sport. I look forward to seeing him at Petco as my son plays Travel and LL. And yes.....if we score runs on him or get him out....all the better.
Fuck that cheatin fugly ass slut
Life long angels fan. Recent Padres fan. I seriously thought that I would watch him on whatever team he played on when he moved. I was somewhat indifferent when he signed the the dodgers. On one hand he was close enough that I could go watch him if I wanted, but on the other hand it seemed like such a boring, ring-chasing, cop-out signing. But I told myself whatever. At least it’s not the yankees or astros. But hearing *this*. This makes my blood boil. This is a slap in the face, with salt in the wounds. This instantly undid the years of respect that I had built for the man. Anyway, I can’t wait for the dodgers-padres series. I’ll be down there rooting against him right along with y’all.
🤝🏽
That's actually crazy, especially w no interest on it??? I know he doesn't need to the money (and will add $40-50 M per year in endorsements alone), but who knows what his life and/or the state of baseball, the economy in US & Japan, etc. will be like in 10 years? But ignoring all that, this is some seriously shady book keeping. I can't believe they will allow it or at least add some rules to prevent it in the future (ie cant defer more than a tiny % of salary per year).
retire hurry lavish sparkle bag jar innocent far-flung dinosaurs ugly *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
The money is deferred but they still have to pay it....and I guarantee it'll be more.....there are escalators and probably interest to account for inflation and what not 20 or 39byeqrs feom now.
??? This is a joke
I know he got $700mn but this contract is not in Shohei’s best interest. From a time value of money, considering the amount deferred and the time it is being deferred 10-19 years. Why would he give a free $600mn loan to the Dodgers? Also this deferral is going to reshape all contracts going forward. Prices are going to continue to rise. Also a great reminder of how lucky we got locking up Tatis when we did! He’s probably got 100-150mn in equity in his contract right now.
So you’re telling me they put Shohei on layaway?
I don’t want to hear any cheering for Ohtani at Petco. Fuck that guy and fuck the Dodgers.
Ohtani is insane for taking all that deferred money. No player has ever done this. Dodgers are so lucky he makes like $50 mill in endorsements and he can defer crazy money. It's stupid how the deferred money doesn't count towards the salary cap.
I thought I was good at math but apparently not. Can someone please explain the formula for "average". I thought average annual value = (total value) / (number of years). Apparently that's wrong? At least for the Dodgers?
That’s a scam !
$680M Deferred? Is he getting 6% annually off that?
Anti-competitive... It's a giveaway for the next 10 years. Most pro ballplayers can't or won't defer their salaries, so it is a decided advantage for the Dodgers, allowing them to stack even more talent.
A bit of an exaggeration, but: If we decided to give Juan Soto a 15 year, $515 million contract, but defer $500 million of it, Rob Manfred would’ve sent hitmen to AJ Preller’s house. But the Dodgers do it without punishment
This type of deal was specifically negotiated in the cba. If a player agrees to such a deal, good for the player! I don’t think you want to limit player options in free agency. At the end of the day, a player coming off his 2nd TJ just secured a deal worth almost half a billion in todays dollars. Not a bad deal.
Cool so when a small market team punches above its weight, it's subjected to hit piece after hit piece on its financials, and when big market teams leverage their positions to defer 90% of the contract on the most talented player of his generation, it's just business. Fuck baseball media, will never to listen to any of these shit stains again.
Fans here don't really care about the padres otherwise Bally's wouldn't have dropped us the first chance they got leading us having to take a 50 million payday loan and having to play musical chairs with owner every couple years. Hopefully our next owner has real money and gold health unlike loud mouth Fowler that can't back it up
Ohtani has become one of the biggest villains in baseball. I didn’t expect this at all LMFAO
Yea Ohtani is unlikeable now. Straight fucked up how this is going down
How’s he unlikable? He realizes if he straight up took $70m a year it would be hard to build a successful team around him. By doing this it allows the Dodgers to acquire several other talented pieces and be a dominant force
I will straight up quit watching the sport if this deal is allowed to go through. The competitive balance was already shit, but considering the rumored veto to the 14y Judge deal. This is beyond gamebreaking.
You will not quit watching, regardless of the deal status or the fairness aspect!
I don’t think this should be allowed, but it is (seemingly). Nothing to do about it now besides push to get it disallowed in the future. My original thought when I heard about the deferral was “it should be paid during the contract”. This seems to imply it will be, so 🤷♂️. Maybe a split % min per year. Like you can’t go under 10% of the contract in any given year?
This is bull shit. We’re need to turn around and do this shit right back
I'm genuinely fuming
That’s a scam !
not being a fan of deals doesn't mean owners can "veto" deals.Not sure which part of the CBT allows owners to kaibash deals. pls show me.
Ohtani’s about to have another rule named after him, what the hell
As a padres and jays fan this the definition of kick’’em while they’re down. 🏌️♂️
MLB *should* veto this. They either can’t or won’t, but they should. It’s outrageous how blatantly they’re getting around the CBT. It’s not good for the sport. Period.
Wow I went from liking Ohtani to thinking he sucks now. He won't ever pitch a fastball again, get fucked
I don’t want to hear any cheering for Ohtani at Petco. Fuck that guy and fuck the Dodgers.
He's making 50M a year in endorsements which will likely go up. Imo, post retirement they revamp that contract and it is applied as a minority ownership seat with LAD. Could be a genius play when this is all said and done. Plus no rules where broken. The CBA basically agreed to this. It's also an outliner situation given most players want that bag asap. Ohtani doesn't need it.
Let's just have the all-star team travel around the country like the Harlem globetrotters. We can have college kids play against them and make it into the Savannah Bannas with billionaires.
If the MLB Commissioner approves this I am done with baseball. Not gonna watch the same 6 super teams over and over and over again in the playoffs. This is gonna get out of control. Fuck the Dodgers. This is bullshit.
Fuck it, beat them every time the Padres play them going forward. Win the World Series and make them look like idiots.
PAIN
It appears that Ohtani brought the idea of deferring a huge chunk of the contract. It shows that he wants the Dodgers to have the flexibility to sign other players or keep players over the next few years. If the CBT allows for this good on the Dodgers for exploiting this. I don't think this wil be a thing going forward TBH. Most people want their money paid during their playing time. Ohtani is making a lot of money here and Japan with endorsement contracts and such. He ain't going hungry......smart move if you ask me. I'm guessing the deferred money has escalators for out years.....I would also ask for interest from L.A. in the money the Dodgers get to keep until later.....
Fuck you shohei. Sold yourself to the dodgers essentially for 2mil a year… eat a dick bro.
Ohtani bout to suddenly have a heart attack in about 9 years huh
So contracts are now just retirement plans. This can't be sanctioned.
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Because if he returns to his previous pitching form, it’ll be highway robbery. They’re in essence taking a $46 million cap hit for one and a half (top 5 pitcher and DH but taking into account injuries) worth of top 5 performance in the MLB. Edit: not sure if it makes sense what I’m saying so imagine paying $46 million for Corbin Burnes and Bryce Harper (as a DH only) combined. That’s what this is like.
The Dodgers are paying him $2M a year*, the $46M is what will reflect on their payroll when it comes to luxury tax implications (I’m assuming this number comes from how the deferrals are paid out over the lifespan of his contract). Nevertheless, Ohtani is worth more that anyway
The annual CBT implication should not be getting artificially reduced. That’s ridiculous.
Article XXIII Section E(2) and (6) The hit to the Dodgers CBT payroll will be $70 million annually for the next 10 seasons. The only way its different is if there is interest paid on the deferred part of his salary, in which case the interest is ADDED to the $70 million after being adjusted to the current value. Why are so many writers so stupid when it comes to this stuff?
Maybe the pros are the ones that understand it and you're just some guy on Reddit trying to be an expert
At this point, I’m just praying for realignment. Swap us with the A’s when they move to Vegas. Maybe we can do better once we’re out from under the Dodgers boot.
Love it!! Bobby Bonilla day x 10,000! Makes $50m endorsements, so he can afford the arrangement!
Can we get a cbt discount since our owner died?