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Shohei Otani


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#241 mdrunning

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Posted 11 December 2023 - 07:34 PM

Bob Nightengale of USA Today posited that another possible reason for Ohtani to defer so much money was to avoid California's high tax rate (12.3 percent on the highest incomes), but I'm not sure if it works that way. Under the California tax code, non-residents may still have to pay state tax on income generated from a California business, trade or profession.

 

I think the Dodgers qualify as a California business.



#242 mdrunning

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Posted 11 December 2023 - 08:12 PM

If he generated anywhere near that type of revenue, John Angelos would have even been into signing him.

I hope John Angelos does the same thing the next time the Orioles are trying to stay under the luxury tax. :)


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#243 BSLMikeLowe

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Posted 11 December 2023 - 08:29 PM

If he generated anywhere near that type of revenue, John Angelos would have even been into signing him.

 

"Do you do concerts?"

 

- maybe John Angelos during contract negotiations 


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#244 Pedro Cerrano

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Posted 11 December 2023 - 10:38 PM

"Do you do concerts?"

- maybe John Angelos during contract negotiations


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#245 Mackus

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Posted 12 December 2023 - 07:55 AM

Ohtani's contract will count for roughly $46 million annually against the CBT, although it isn't clear how that figure was reached.

 

Duh. Inflation at 4 percent annual inflation $70 million is worth about $46 million in 10 years.

 

I think it'll be ~$48M each year.  The $2M he's paid in each season plus the NPV of $68M paid 10 years in the future is $45.94M assuming a 4% discount rate.

 

If the ~$46M being reported is actually correct, then I don't know how they get there.  Maybe 4% isn't the agreed-upon rate anymore?  Would make sense if they had increased it given the rate of inflation, but I haven't heard that.  4.45% would put it dead on $46M.



#246 Mackus

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Posted 12 December 2023 - 10:53 AM

https://www.mlbtrade...-tax-dodge.html



#247 mdrunning

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Posted 13 December 2023 - 09:32 PM

Reportedly no opt-outs in the deal, either.

Update: Ohtani may opt out of the contract under certain personnel conditions. If either Mark Waller is no longer controlling owner or if president of baseball operations Andrew Freidman is no longer with the club, Ohtani has the ability to opt out.



#248 JeremyStrain

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Posted 14 December 2023 - 10:37 AM

Update: Ohtani may opt out of the contract under certain personnel conditions. If either Mark Waller is no longer controlling owner or if president of baseball operations Andrew Freidman is no longer with the club, Ohtani has the ability to opt out.


Am I the only one that thinks he'd be crazy to opt out of that deal?

 

I mean yeah $2m per for 10 years is meh, but he's got a good contract under him, and it's not hard to live off $2m per year. All of us are doing much better than that. But $68m per year in his retirement years is kind of amazing.


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#249 mdrunning

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Posted 14 December 2023 - 11:11 AM


Am I the only one that thinks he'd be crazy to opt out of that deal?

 

I mean yeah $2m per for 10 years is meh, but he's got a good contract under him, and it's not hard to live off $2m per year. All of us are doing much better than that. But $68m per year in his retirement years is kind of amazing.

You're doing better than $2 million per year? Congratulations! :)


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#250 makoman

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Posted 14 December 2023 - 11:38 AM

He just needs to analyze what the present value is at the time and the likelihood of exceeding that with a new contract. If it's winter 2025 and he has a chance to opt out and he's come back and won a Cy Young and continued to be an MVP caliber DH, maybe he can beat the 46M or whatever the value of the current contract is just by deferring less, or add another year or two to the end. I don't really remember, but I think A Rod's first 250M deal seemed crazy and then he was able to beat it a few years later.

 

He makes $40-50M/year in endorsements so his take home pay from the Dodgers is somewhat irrelevant.



#251 Mackus

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Posted 14 December 2023 - 12:12 PM


Am I the only one that thinks he'd be crazy to opt out of that deal?

I mean yeah $2m per for 10 years is meh, but he's got a good contract under him, and it's not hard to live off $2m per year. All of us are doing much better than that. But $68m per year in his retirement years is kind of amazing.

He'll still get the $68M in the future for any years he's played. If he plays 2024 the opts out, Dodgers will have to pay him $68M in 2034, but not in any later years.

#252 mdrunning

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Posted 14 December 2023 - 01:21 PM

He just needs to analyze what the present value is at the time and the likelihood of exceeding that with a new contract. If it's winter 2025 and he has a chance to opt out and he's come back and won a Cy Young and continued to be an MVP caliber DH, maybe he can beat the 46M or whatever the value of the current contract is just by deferring less, or add another year or two to the end. I don't really remember, but I think A Rod's first 250M deal seemed crazy and then he was able to beat it a few years later.

 

He makes $40-50M/year in endorsements so his take home pay from the Dodgers is somewhat irrelevant.

Right, but he can only do so if there are changes in the Dodgers' front office. I haven't seen where there's a specific timeline allowing Ohtani to opt out under any other circumstance. I guess it just adds another layer of stability and security.

 

Such a provision is unprecedented for a player, but it's been done by a manager. Joe Maddon was allowed to opt out of his Rays' contract in 2014 when Andrew Friedman left for the Dodgers.



#253 BSLChrisStoner

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Posted 22 March 2024 - 05:17 PM

CBS Sports: Shohei Ohtani investigation: MLB begins formal probe into gambling scandal, Dodgers star can still play

https://www.cbssport...can-still-play/



#254 BSLChrisStoner

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Posted 24 March 2024 - 09:06 AM

The RingerFive Big Questions About MLB’s Investigation Into Shohei Ohtani






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