Quote:
Originally Posted by Strange Brew
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%.
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Plus the CBA literally requires them to pre fund it.
The Dodgers are giving a bit of his $46MM to him and putting the rest in a bank account with his name on it. From their perspective it's absolutely $46MM/year.
From his perspective also, because he could easily get as good or better return on the money if they gave it to him now. IMO this is mostly about bragging rights to call it $700 MM and skipping out on CA taxes.