To pile on, there is no Ohtani Rule.
But eventually the Dodgers will have them on the CBT books after they retire, right?
Cot's has Mookie's deal listed at $29M AAV (the final column below) and they already have Ohtani's in there at $70M AAV.
This has been going on for the past couple of years with these massive super long term contracts.
If teams can and do defer the shit out of contracts to lessen the CBT hit, doesn't that suggest that the penalties do matter to an extent?
Spotrac is wrong a lot, Cots I've found to be much more reliable. It's possible they don't have the Ohtani one in there correctly as it just happened, but I would definitely trust Cots on the Mookie one.
There is no way to put anything other than 70M in for Ohtani until the contract details are known and an analysis is done.
This is going to be some bullshit then when the CBT number is magically 40M or some shit.
That's not the AAV column, the AAV is farther to the right. The first column is the actual payout each year, I believe.
What have the Dodgers won?
Oh gotcha, he didn't see the final column. Yeah if Sportrac is wrong then I suppose that's not how they do it.
What interest rates? You seem to be making a lot of assumptions. If the deferrals are paid with interest equal to the discount rate the PV is still 700m.
I think the point here might be that LA won't have to pay the full salary to Ohtani as well as the overall tax penalties at the same time? But I don't think you can really game the AAV, I guess we'll see.
Quite honestly this is probably the best possible outcome for them, Angel fans can still see him playing in their hometown/time zone and watch a better brand of baseball at the same time.
I guess we'll see if Cot's knows what they're talking about, but everywhere seems to list Freeman as having a $27m AAV, not $21m. The Dodgers seem to defer money as more of a cash flow thing as it does not seem to work for AAV.
If by "these teams" you mean the MFY, NYM, LAD, and maybe a couple of others, then I agree. I suspect the rest of baseball is quite concerned about their future local TV revenue.
https://www.truebluela.com/2022/3/18/22982575/freddie-freeman-contract-details-dodgers-payroll-luxury-tax
I mean, sure, teams are obviously still going to try to save money wherever they can. But at the very least, the fact that Dodgers will be carrying Freeman, Mookie, and Ohtani, and likely will be paying the CBT for the next 10 years should put a stake through the heart of the "there was no way the Sox could keep Mookie with David Price on the books!" argument forever.
I think the new CBA, signed right around the same time as the Freeman deal, altered the rules around this, but not positive on that.
There is no chance the present value of this contract is 700M. That's not how any of these contracts work. Even with no deferrals and the most simplistic possible contract (i.e. exactly 70M per year for 10 years). 70M in 2033 is not worth 70M now.
Sure. Just like they have the past 10+ years and have one 60 game championship to show for it.
Of course to take advantage of it the Sox ownership group would need to be willing to spend at this level...
Seems very strange to me because in that case the deferrals are actually hurting you.
The postseason is largely a crapshoot (which, of course, the owners like, because it disincentives spending). Anyone who points to World Series results as a better indication of quality than W-L record is a fool.
Because that way Mookie can be happy that he is still third on this list, even after the Ohtani deal.
That was an incredible deal. I knew I should have put in a bid back then.
