2023 MLB Thread

[NjDevsRR]

As far as my understanding of all this - by deferring $680M without interest, it knocks the annual value applied to the Competitive Balance Tax to ~$46M per year over the 10-year span of the contract. That's because MLB uses a net present value calculation for luxury tax purposes and since the deferred payments are not gaining interest, the value is lower now.

One of the benefits for Ohtani is that by lowering the CBT rate and only paying him $2M in salary per year over the next 10 years, the Dodgers should be able to field a more competitive team around him. As others have already mentioned, there may also be significant tax advantages for him if he's no longer living in California when $680 of that $700M is paid out.

He's already probably filthy rich to begin with and collecting an estimated $50M per season in endorsements, so deferring such a large amount probably doesn't put a dent in his lifestyle.



There's really no risk on his end as the money is guaranteed. Also read somewhere that the Dodgers have to start setting parts of the deferred payments aside as soon as 2025, so there's no chance they can default on the payment.

 

[Forge]

 

[lightsout]

Gotta give the Dodgers credit. They have single handily forced MLB to create a hard cap. Basically $1.4 billion dedicated to three players.

How can other teams financially survive when you have a team taking advantage of the revenue sharing loophole (deferred payments) and with their spending this out of control? And then have owners getting public money to build stadiums.

 

[Capt Nico Poo]

I watched Field of Dreams last night on TV. Cant believe they actually played an MLB game there in the corn field in Iowa in 2021.

Now i have an urge to visit the place lol. It seems to be quitr close to Chicago. I always thought Iowa was more to the west, like close to Montana or something.

 

[My3Sons]

I watched Field of Dreams last night on TV. Cant believe they actually played an MLB game there in the corn field in Iowa in 2021.

Now i have an urge to visit the place lol. It seems to be quitr close to Chicago. I always thought Iowa was more to the west, like close to Montana or something.

You’d fit right in with your 10 gallon hat, Levi’s, square toed shit kickers, big brass belt buckle and chaw. Just say “I reckon” a lot and they will think you are a local.