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Old 12-22-2023, 10:55 AM   #1358
Parallex
I believe in the Jays.
 
Join Date: Apr 2009
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Quote:
Originally Posted by Inferno View Post
Not as a favor. He's there for the next 10 years and wants to win so it benefits him just as much as them that they can spend an extra 24M to add other player(s) that otherwise would have been spent on him.
I think this is incorrect.

1: This is only right if the dollar value on undeferred offers from the Dodgers was higher then the NPV calculation used for CBT calculation (in which case Ohtani left money on the table). Which might be the case but considering that his pre-offseason valuation was estimated at around 500M and this is around 500M in NPV I suspect that's not the case.

2: Even if 700M was on the table straight up it doesn't get them an additional 24M worth of players. MLB isn't a hard-capped league. The most it would do is save them roughly 15M-ish dollars in CBT payments (assuming they don't hit the next threshold that takes it to a 92% taxable rate).

This is just bragging rights with possible tax avoiding benefits for Ohtani. Of course they're playing it up as something else but that's just for show.
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