OT: 2023 MLB Thread

[17futurecap]

That’s hilarious, he makes so much in endorsements, he doesn’t even need the money now, or ever really.

 

[NYR94]

LMAO 97% of the money deferred

 

[Crease]

Dodgers banking on an asteroid taking out Earth within the next 10 years.

 

[NickyFotiu]

LMAO 97% of the money deferred

Im looking forward to someone saying what the present value is since there is no interest. Could probably plug the numbers in to an annuity calculator to find its present value.

 

[NYR94]

 

[nyr2k2]

It's silly but it's permitted by the CBA. If owners want to change it they can try to, like when the NHL changed how salaries could be distributed over the life of the contract. I don't see why the players would want to change it though since it benefits them.

 

[Machinehead]

It's silly but it's permitted by the CBA. If owners want to change it they can try to, like when the NHL changed how salaries could be distributed over the life of the contract. I don't see why the players would want to change it though since it benefits them.

Oof, in that case let's just ignore it.

The quality of the NHL got significantly worse when the owners started meddling too much.

 

[Crease]

Does the $68M per year count against the Dodgers’ luxury tax threshold in 2034-43?

 

[duhmetreE]

something is not adding up.

will they defer that into part ownership or something? ?

 

[Irishguy42]

something is not adding up.

will they defer that into part ownership or something? ?

defers into his bank account but 10 years later

 

[sbjnyc]

The only who got it essentially right.

 

[Kane One]

Does the $68M per year count against the Dodgers’ luxury tax threshold in 2034-43?

Nope

 

[majordomo]

Nope

Sounds like circumvention to me.

 

[Machinehead]

The only who got it essentially right.

Nice

 

[GoAwayPanarin]

Sounds like circumvention to me.

It's not. I don't really see the issue here either because the player agreed to it (and depending on if you believe it, actually suggested that they do this.)

The hit against the tax threshold will be 46 mill (not 70, but not insignificant.) Regardless there is no rule that prevents teams from structuring deals this way.

It's such a massive W for Ohtani. Endorsements will more than cover the difference for what he isn't making until the end of his contract and when he's ready to call it a career he's going to get a f*** load of cash coming his way. Dude is gonna be European soccer star wealthy.

If LA can snag a ring or 2 before he goes belly up I'm sure they'll deal with the back end of the contract but it's got a ton of risk attached to it even with how its structured. We don't know how many bullets that arm has left in it (or what he'll even look like once he's pitching again) and I doubt that he comes close to putting up the numbers that he just posted last year. 46 million is a ton for a DH, especially one who will probably just be a good one instead of the best one in the league moving forward.

 

[majordomo]

It's not. I don't really see the issue here either because the player agreed to it (and depending on if you believe it, actually suggested that they do this.)

The hit against the tax threshold will be 46 mill (not 70, but not insignificant.) Regardless there is no rule that prevents teams from structuring deals this way.

It's such a massive W for Ohtani. Endorsements will more than cover the difference for what he isn't making until the end of his contract and when he's ready to call it a career he's going to get a f*** load of cash coming his way. Dude is gonna be European soccer star wealthy.

If LA can snag a ring or 2 before he goes belly up I'm sure they'll deal with the back end of the contract but it's got a ton of risk attached to it even with how its structured. We don't know how many bullets that arm has left in it (or what he'll even look like once he's pitching again) and I doubt that he comes close to putting up the numbers that he just posted last year. 46 million is a ton for a DH, especially one who will probably just be a good one instead of the best one in the league moving forward.

I know it's allowed....and I have a feeling MLB will eventually put a stop to it. In the meantime, this also helps the Dodgers as they are going to make A LOT of money from marketing alone -- more than enough to bank and be able to pay off the contract.

 

[JCProdigy]

From LA's perspective, the contract value is about halved with almost everything deferred.

From Ohtani's perspective, he has enough money that he won't care about lost value and he'll be able to limit some of that loss by some tax f***ery after he "retires" in ten years.

In the end, I don't think the owners or anyone else involved, would care to change this ability under the CBA for several reasons. The most likely one is Ohtani is in a very specific situation that I don't think many other players will ever be in and as such they wouldn't ever structure their contract like this.

 

[turcotte8]

lol

 

[sbjnyc]

What could have been….

 

[nyr2k2]

Yeah I read something that said the $46M CBT hit is the biggest in the game, and it's in line with what people were projecting for him in a "straight" deal of like 10/$500m or whatever. So from that perspective LA isn't really gaining an advantage because the reality is no one was going to go higher than that without a ton of deferrals. So the advantage for LA is that they can pay all that money at the back end of the deal, but what they're doing now isn't any kind of circumvention since they'll be charged an amount that's in line with what anyone else would have been charged had they signed him.

 

[sbjnyc]

Eli strikes back…

 

[NYR94]

 

[Kane One]

It's not. I don't really see the issue here either because the player agreed to it (and depending on if you believe it, actually suggested that they do this.)

The hit against the tax threshold will be 46 mill (not 70, but not insignificant.) Regardless there is no rule that prevents teams from structuring deals this way.

It's such a massive W for Ohtani. Endorsements will more than cover the difference for what he isn't making until the end of his contract and when he's ready to call it a career he's going to get a f*** load of cash coming his way. Dude is gonna be European soccer star wealthy.

If LA can snag a ring or 2 before he goes belly up I'm sure they'll deal with the back end of the contract but it's got a ton of risk attached to it even with how its structured. We don't know how many bullets that arm has left in it (or what he'll even look like once he's pitching again) and I doubt that he comes close to putting up the numbers that he just posted last year. 46 million is a ton for a DH, especially one who will probably just be a good one instead of the best one in the league moving forward.

“Players agreeing to it” really isn’t a valid argument. A-Rod signed a contract with the Red Sox but the union rejected it.

However I agree with everything you’re saying after following this news. The league even wanted to close this loophole in the last CBA talks but the union was against it. So it’s hardly a loophole if everyone knew it existed.

Same thing with the Lightning’s LTIR loophole. They were the ones who actually raised this loophole to the league, but we all complain that they are taking advantage of it.

 

[GoAwayPanarin]

“Players agreeing to it” really isn’t a valid argument. A-Rod signed a contract with the Red Sox but the union rejected it.

However I agree with everything you’re saying after following this news. The league even wanted to close this loophole in the last CBA talks but the union was against it. So it’s hardly a loophole if everyone knew it existed.

Same thing with the Lightning’s LTIR loophole. They were the ones who actually raised this loophole to the league, but we all complain that they are taking advantage of it.

He didn't. He had an existing contract and tried to defer the money after the fact which is why it was rejected.

 

[Kane One]

He didn't. He had an existing contract and tried to defer the money after the fact which is why it was rejected.

Ah, yeah you’re right.