From the Daily News...
"Ohtani has reportedly deferred $68 million of his $70 million annual salary meaning he will make just $2 million per year during his time with the Dodgers. The remaining $680 million will be paid from 2034-2043. The deferrals give the Dodgers more financial freedom to continue spending around the two-way megastar and remain contenders for the length of his contract."
A real commissioner of MLB would kill this.
From History.com
"Minutes before the trade deadline on June 15, Oakland A’s owner Charles O. Finley sold stars Joe Rudi and Rollie Fingers to the Boston Red Sox for $1 million each and Vida Blue to the New York Yankees for $1.5 million to prevent losing them for nothing in the sport's first free-agency period...
...Three days after the sale, MLB commissioner Bowie Kuhn infuriated longtime nemesis Finley by voiding the transactions, citing his best-interests-of-baseball power."
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6 comments:
Obviously, the owners plan on selling in 2034
Ohtani makes 45 million a year in marketing. If he's getting the extra 68 million a year for 10 years after his contract ends, at the current interest rate, that should be between 75-80 million per, maybe more? I don't know how MLB figured the AAV at 46 million for payroll/luxury tax purposes. But what part of his deferred compensation, if any, counts toward the payroll in years 2034-2043? I probably shouldn't worry as I'll likely be dead.
Bowie Kuhn was a pompous, conservative douche who seemed to be 20 years behind the times. As stuffy as they come. Kuhn was always the owner's stooge ( except for Finley and Steinbrenner ). That is until he wanted to root out steroids. The commissioner has long been non-neutral concerning baseball matters. Invoking " in the best interests of baseball" was just his way of fucking over Finley. Faye Vincent was the last commissioner who, at least, made it look like he was neutral, That pretense has dissolved. The 21st-century commissioners are as unbiased as the referees in professional wrestling.
The AAV is figured based on the duration of the contract. So - if this is a 20 year contract the salary cap hit would be $35M per year. Example for us, we are paying Stanton $32M this year (Marlins no longer have to kick in $5M) but it’s only a $22M cap hit for the team.
Yeah, utterly disgraceful. This makes a farce out of the luxury tax. Any commissioner who cared about the game would void the deal. Guess what?
Ohtani obviously is just a dumb jock who hasn't studied finance or economics.
He's deferring 68 mill per year until ten years from now? The value of the dollar will be greatly lessened ten years from now, let alone twenty years from now. What's the present value of his contract? I'm too lazy to figure it out, and it depends on what you project to be the inflation rate over those years. But I would venture to say that this contract is worth A LOT LESS than a conventional 10 year/500 million deal @ 50 mill per year.
I thought Judge was stupid for giving the Yanks a 90 million dollar break. Ohtani has just made Judge look like Einstein. Not just inflation and the interest rate, but a whole lotta crap can happen in ten years, twenty years time. Hell, the fucking world might end a year or two from now. And Ohtani's getting paid 2 mill a year! What a freaking idiota X 700 million!
When I heard about 700 million, I thought the Dodgers had done something stupid. Now I understand why they did it. This is a very good deal for the Dodgers. I would've done it, if I was them. Sorry I underestimated you, artful Dodgers! You took Ohtani to the cleaners, and then some. I can't believe Ohtani's agent allowed this. If I was an agent, no effing way would I have let my player sign a deferred contract like this. Both Ohtani & his agent are effing crazy idiotas!
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