The future of Shohei Ohtani

[mrreality68]

Originally Posted by jayshum

$680 out of $700 million deferred. That's hard to believe.

That is insane amount of deferred money but he will make a ton in marketing each year.

[clydepepper]

Originally Posted by mrreality68

That is insane amount of deferred money but he will make a ton in marketing each year.

Even Bonilla will be retired before this guy stops getting paid.





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[Casey2296]

Originally Posted by Gorditadogg

Yep. Capitalism sucks.

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Capitalism is the only thing that allows me to buy baseball cards.

[Peter_Spaeth]

Originally Posted by jayshum

$680 out of $700 million deferred. That's hard to believe.

So what's the present value of the contract?

[cgjackson222]

Originally Posted by Peter_Spaeth

So what's the present value of the contract?

Not sure if this is correct:

[Beercan collector]

What’s the payment after 10 years ?
2 million a year for 340 years ? 😊

[jayshum]

Originally Posted by Beercan collector

What’s the payment after 10 years ?
2 million a year for 340 years ? 😊

Apparently he gets the rest from 2034-2043 so not quite as long as you suggested.

[jayshum]

Does the deferred money get counted as salary paid when determining the luxury tax owed during the years it's being paid or does the contract only get included during the years he's playing based on the present value which is around $46 million per year?

[Seven]

Originally Posted by Gorditadogg

Yep. Capitalism sucks.

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I wouldn't say Capitalism sucks, not to get political, but any sort of system/organization without any kind of regulation leaves itself open to corruption and rampant abuse. You wouldn't mind the players salaries, team values, and price of tickets/ballpark concessions, if the average persons money rose with the times. But that's not a discussion for here.

I wouldn't be surprised if deferment is addressed in the next CBA. I can't imagine this makes many people happy.

[D. Bergin]

Originally Posted by jayshum

Does the deferred money get counted as salary paid when determining the luxury tax owed during the years it's being paid or does the contract only get included during the years he's playing based on the present value which is around $46 million per year?

Exactly. 46 Mill gets counted towards the cap.

Still a pretty huge cap hit.

[Gorditadogg]

Originally Posted by jayshum

Does the deferred money get counted as salary paid when determining the luxury tax owed during the years it's being paid or does the contract only get included during the years he's playing based on the present value which is around $46 million per year?

Yep. Present value of total payout = $46 million per year. Cap hit = $46 million too.

After the initial screwed-up reporting, this deal now seems . . . manageable.

[Gorditadogg]

Originally Posted by Seven

I wouldn't say Capitalism sucks, not to get political, but any sort of system/organization without any kind of regulation leaves itself open to corruption and rampant abuse. You wouldn't mind the players salaries, team values, and price of tickets/ballpark concessions, if the average persons money rose with the times. But that's not a discussion for here.

I wouldn't be surprised if deferment is addressed in the next CBA. I can't imagine this makes many people happy.

Oh my! Dodgers are DEFERRING COMPENSATION!! Can you believe it!! What rampant corruption and abuse!! I don't like this at all!

[packs]

I don't understand the issue. Don't we all try to make as much money as possible in our jobs? Why does it become different if the job is a professional athlete? Why shouldn't Ohtani make as much money as he can? Who wouldn't in their own employment?

There is only one person in the world who can play the game like Ohtani can, and that's Ohtani himself. Why wouldn't he be subject to a different standard when it came to his pay?

[Seven]

Originally Posted by Gorditadogg

Oh my! Dodgers are DEFERRING COMPENSATION!! Can you believe it!! What rampant corruption and abuse!! I don't like this at all!

I apologize if the points I was trying to make weren't clear. The two things are separate issues, I'm by no means saying the deferring of compensation is corrupt. I'm quite fine with how the deal was structured. The second point I made was more along the lines of owners of smaller market teams who feel like they couldn't afford a deal such as this, and such would raise this issue during the next CBA negotiation.

To my first point, I'm just a firm believer that too much money has permeated the sport. I fully understand that owning a team is a business, you want to maximize your profit. But these gaudy numbers that surround everything related to professional sports nowadays is pretty ridiculous.

[Seven]

Originally Posted by packs

I don't understand the issue. Don't we all try to make as much money as possible in our jobs? Why does it become different if the job is a professional athlete? Why shouldn't Ohtani make as much money as he can? Who wouldn't in their own employment?

There is only one person in the world who can play the game like Ohtani can, and that's Ohtani himself. Why wouldn't he be subject to a different standard when it came to his pay?

My issue with sports on the whole, and this is just a personal opinion, is that there's too much money involved in all of them nowadays. I think it's absolutely ridiculous that players are paid millions of dollars to play baseball, or really any sport for that matter. Yes the market dictates what they're worth/paid, and it's just something I have to live with.

[packs]

But what makes it ridiculous? Salaries provide a window into the health of the league. Clearly MLB is doing very well considering how often these contracts are offered. I'm really not sure how it can bother people that talented individuals who generate revenues are paid salaries that reflect their value. Isn't that what everyone wants out of their job? It's upsets me I can't get it in my own work. But I'm not going to take it out on a baseball player.

[G1911]

One need not be a communist to understand that $700 million to play a game is kind of absurd. Good for him, go and get his, but it’s also a little nuts that we have chosen to value a ballplayer like this rather than any functional role.

[packs]

A talented professional athlete is earning their way. In every other circumstance it seems like maxing out your potential value is encouraged. But not in sports.

[G1911]

Originally Posted by packs

A talented professional athlete is earning their way. In every other circumstance it seems like maxing out your potential value is encouraged. But not in sports.

Nobody is criticizing him for maximizing his value or getting his money. I even said it explicitly. Many people recognize that paying $700,000,000 to a player of a game is rather absurd for the obvious reasons.

[Gorditadogg]

Originally Posted by G1911

Nobody is criticizing him for maximizing his value or getting his money. I even said it explicitly. Many people recognize that paying $700,000,000 to a player of a game is rather absurd for the obvious reasons.

Anybody getting $700 million for anything is absurd. More absurd is Elon Musk's kids (as an example) being worth $2 billion each just for popping out of the right birth canal.

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[Shoeless Moe]

....

[Peter_Spaeth]

When anyone comes up with a better way than the free market to determine what someone's services are worth, please post it here.

[JustinD]

Originally Posted by Peter_Spaeth

When anyone comes up with a better way than the free market to determine what someone's services are worth, please post it here.

*Chairman Mao enters the chat*

[G1911]

I'll believe MLB is an example of a free market when teams aren't heavily subsidized with forced tax revenues and the states/cities aren't paying for most of the stadiums.

[jayshum]

Originally Posted by G1911

I'll believe MLB is an example of a free market when teams aren't heavily subsidized with forced tax revenues and the states/cities aren't paying for most of the stadiums.

I'm pretty sure most stadiums have been paid for more by cities and states than by the teams. The new stadium being built in Las Vegas is just the latest example.

[G1911]

Originally Posted by jayshum

I'm pretty sure most stadiums have been paid for more by cities and states than by the teams. The new stadium being built in Las Vegas is just the latest example.

Exactly.

A state protected monopoly heavily subsidized by the state is a poor example of a free market lol

[jayshum]

Originally Posted by G1911

Exactly.

A state protected monopoly heavily subsidized by the state is a poor example of a free market lol

Sorry, I realized I misread your earlier post that I replied to.

[Gorditadogg]

Originally Posted by G1911

I'll believe MLB is an example of a free market when teams aren't heavily subsidized with forced tax revenues and the states/cities aren't paying for most of the stadiums.

If you are going to cross off the list any entity that has negotiated tax breaks or subsidies, there won't be much of a free market left.

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[G1911]

Originally Posted by Gorditadogg

If you are going to cross off the list any entity that has negotiated tax breaks or subsidies, there won't be much of a free market left.

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If you believe it is necessary to negotiate special breaks and subsidies from the state for a business to operate, that might be a clue that it ain't a free market at all.

There's nothing free market about it if it's government subsidized and a state protected monopoly. This is one of the worst businesses in America to claim is free market.