The future of Shohei Ohtani

[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?

[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.