Quote:
Originally Posted by Inferno
It's still a 700M deal. It's just paid over the course of 20 years instead of 10 so the Dodgers save 24M a year on luxury tax calculations.
It's been reported numerous times that Ohtani wanted to do it so the Dodgers could add even more players.
He still gets his 700M to add to whatever he makes in endorsements. He just gets 97% of it after he retires.
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It’s not 700 million though in the typical sense
It like when Survivor and Amazing Race say you win $1 million , but it’s actually $50k a year for the next 20 years - it isn’t “worth” one million
The contract they agreed to is $485 million ish in real dollars . They then spread it out so that he doesn’t have to pay California taxes post playing career and increased the amount so the present value of the contract matches
This is all about allowing him to defer and avoid approx $100 million in extra taxes over the long run . But they sure weren’t going to come out and say that’s why . So they feed some BS about “His idea to help the Dodgers”
It doesn’t “help” the Dodgers in any real sense - unless the Dodgers actually offered 700$ million up front and he chose to defer it - in which case Ohtani is a moron who effectively took 200$ million less then offered
But this has already been debunked with sources confirming $500 millionish was the offer on the table from other teams (which equals approx the $700 million he takes deferred)
All that matters is the present value and tax implications of this deal - so that 20 years from now he comes out ahead vs taking the money up front and investing
If you think Ohtani is doing this as a “favor” to LA I have a bridge to sell you