HOF
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.
HOF
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. 
CFB Analyst
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
I Miss McNulty
Posted 11 December 2023 - 10:38 PM
"Do you do concerts?"
- maybe John Angelos during contract negotiations
There is baseball, and occasionally there are other things of note
"Now OPS sucks. Got it."
"Making his own olive brine is peak Mackus."
"I'm too hungover to watch a loss." - McNulty
@bopper33
HOF
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.
HOF
HOF
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.
Moderator
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.
HOF
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!
HOF
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.
HOF
Posted 14 December 2023 - 12:12 PM
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.
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.
HOF
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.
Owner
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/
HOF
Posted 20 September 2024 - 09:29 AM
Ohtani is the best player of all time. And it may not be close.
HOF
Posted 20 September 2024 - 09:40 AM
Ohtani is the best player of all time. And it may not be close.
I haven't tried comparing, but would guess that from 2021-2024 is the best 4-year stretch in MLB history. Will be interesting to see how he does with longevity and how he pitches coming back from his second elbow surgery. He had a late start coming from Japan and has had a lot of injuries. Ted Williams missed 3 seasons serving and he still had 1000 PA more than Shohei has through Age 29, for example, and Williams was a far better hitter (196 OPS+ to 155). Mike Trout despite his injury issues had 2000 more PA through 29 than Ohtani has and again more productive (176 OPS+).
Of course Ohtani pitches like an ace on top of being a great hitter, so its hard to compare him to any one player. Ruth never hit and pitched at the same time like this (only about a year regularly going both ways). Really hope he stays healthy.
Owner
Posted 20 September 2024 - 09:45 AM
He might not have the best total career, but he's going to be in the short discussion for most talented of all time.
HOF
Posted 20 September 2024 - 09:46 AM
We are all witnesses.
BSL Analyst
Posted 20 September 2024 - 05:38 PM
Pretty wild 40/70 lasted precisely one year as the most impressive 40/40 season
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