this post was submitted on 12 Dec 2023
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Explaining the unprecedented deferrals in Ohtani's Dodgers deal (www.mlb.com)
submitted 1 year ago* (last edited 1 year ago) by runwaylights to c/[email protected]
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Apparently Shohei came up with the idea to defer 680 million until his contract runs out.

Because the value of a dollar decreases over time, the contract has a present-day value of roughly $460 million for the purposes of the CBT, given that so much of it is deferred for more than a decade. Therefore, the Dodgers will have a CBT payroll hit of roughly $46 million per year for the next 10 years from Ohtani’s contract. Essentially, Ohtani offered to defer this much money in order for the Dodgers to have payroll flexibility to continue building a winning team.

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[–] [email protected] 2 points 1 year ago (1 children)

When I heard 700/10, I thought "wow, Dodgers must've outbid everyone else." Now, hearing that Ohtani's essentially getting 460/10, I think Ohtani's a Dodger because the Dodgers agreed to spend the most money on players around Ohtani to help him win a championship (and how strong they are at present - recent history of playoff appearances, current roster, farm system)

[–] runwaylights 2 points 1 year ago

I thought the same thing. And now more reports are surfacing that the Blue Jays and Giants matched or came close to matching the deal. But with the Dodgers he has the best chance of making the postseason on a regular basis.

[–] [email protected] 2 points 1 year ago* (last edited 1 year ago)

This means when he turns 40 and is presumably done playing, he will start getting a paycheck from the Dodgers every two weeks.

For $2.6M per paycheck.

For the next 9 years.

This does not count the $77K bi-weekly paychecks he had been collecting for the previous 10 years, or any endorsement, corporate, book, merchandising, or broadcast fees on top of all that.