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.
|
Quote:
Originally Posted by jayswin
Yeah, I don't see how this isn't a $700mil deal. The player gets $700mil, that's a $700mil deal regardless of how it's paid out.
|
If you look at is from the Dodgers perspective, it's not really a $700M deal.
Most of the money is paid after the contract term ends, that makes it very unusual. Frankly it's more like a pension than salary.
From an accounting perspective, if the Dodgers fund his deferred payment $46 million per year over the next 10 years, (or whatever the right number is) that will essentially be their expense related to Ohtani.
Or to put it another way, certainly you would value a $1 million dollar mortgage differently if it was at 0% interest vs. 7%.