Shohei Ohtani is an LA Dodger: 10 years/$700 million
- Thread starter RedOctober3829
- Start date
All expected in the end.
This contract maybe would be reasonable if his arm was healthy. It's pretty ludicrous given that uncertainty.
ANd I understand how he will generate revenue back, but that's still 70M on the luxury tax payroll for a stupid amount of time.
This contract maybe would be reasonable if his arm was healthy. It's pretty ludicrous given that uncertainty.
ANd I understand how he will generate revenue back, but that's still 70M on the luxury tax payroll for a stupid amount of time.
I can’t believe it’s $700mm. I actually can’t believe it.
He’ll have to perform at 95th percentile outcomes both hitting and pitching to be worth even close to that. It’s so crazy.
He’ll have to perform at 95th percentile outcomes both hitting and pitching to be worth even close to that. It’s so crazy.
They make in excess of $500 million in revenue each season, and the valuation of the club rises every single year. They can afford it. The Sox could've, too.
I thought he might get 700 before Tommy John. Now I wonder what he would have gotten if he was healthy as a pitcher.
Very true. The eyes roll back in the head every time new salary records are reached, but the underlying financials are (usually) solid.
Holy flying jeezballs. $70M/year!
View: https://twitter.com/JeffPassan/status/1733580223801704916
Passan: "Shohei Ohtani's contract has significant deferrals that include most of his salary -- an idea, a source said, that was Ohtani's. In deferring the money, it reduces the cost of the competitive-balance-tax hit and will allow the Dodgers to build a better team around him."
View: https://twitter.com/JeffPassan/status/1733580223801704916
Passan: "Shohei Ohtani's contract has significant deferrals that include most of his salary -- an idea, a source said, that was Ohtani's. In deferring the money, it reduces the cost of the competitive-balance-tax hit and will allow the Dodgers to build a better team around him."
Just in time as Bobby Bonilla day is slowly winding down to its final payment
But unless the "deferrals" are additional years of contract, do they affect the CBT?
They benefit it now. It will count against it in the deferred years.
We still have some manny on the books and Devers will be on the books until 2043
It’s still gonna hit the AAV at 70 no matter how they defer it if it’s 10 years. I didn’t think and don’t think making deferred payments after the 10 years has any impact at all.
I think the CBT salary is based on the actual contract length, so I’m not sure what that tweet could mean in the context of mitigating the CBT tax hit.
The super secrecy felt kind of weird and crazy, but holy shit. His team just nearly doubled the largest contract in history. That is some coup.
Nope, I was completely wrong. Maybe that was an old CBA or something else that actually made sense.
https://www.latimes.com/sports/dodgers/story/2022-03-19/freddie-freeman-dodgers-contract-includes-57-million-deferred-payments
https://www.spotrac.com/mlb/los-angeles-dodgers/freddie-freeman-7359/
https://www.latimes.com/sports/dodgers/story/2022-03-19/freddie-freeman-dodgers-contract-includes-57-million-deferred-payments
https://www.spotrac.com/mlb/los-angeles-dodgers/freddie-freeman-7359/
Last edited:
I edited but the length of the contract is how the AAV is determined, not the amount paid per year. So, even if they paid all $700m in year 10, it’s still a hit if $70m. Unless it’s not really a 10 year deal?
Especially not if this one turns out to be the disaster it might be. $700M is just...wow.
I interpret it as meaning the Dodgers aren't paying his salary and the CBT penalties at the same time, so they have more cash flow flexibility
My initial reaction is “HOLY HELL!”
My second reaction is this is amazing for Shohei. The man is a unicorn and may end his career as the best baseball player to ever play. What he’s doing is completely unprecedented and he seems to be the hardest worker in the room.
My second reaction is this is amazing for Shohei. The man is a unicorn and may end his career as the best baseball player to ever play. What he’s doing is completely unprecedented and he seems to be the hardest worker in the room.
