This Ain't Chopped Liver
Active Member
The Dodgers are only paying Ohtani 2 million per year. Ohtani was never leaving LA, he wanted to stay there and he made this deal to give the Dodgers a competitive advantage, and stay in LA.
"Ohtani's 10-year, $700 million deal will include an unprecedented $680 million in deferrals, with Ohtani now slated to make just $2 million per year for each season of his Dodgers' contract, according to The Athletic's Fabain Ardaya. Ohtani will take home just $20 million total from 2024 through 2033, then earn $68 million per year from the Dodgers from 2034 through 2043."
But the Dodgers do take a 46 million hit toward the payroll and tax threshold.
“A team's Competitive Balance Tax figure is determined using the average annual value of each player's contract on the 40-man roster, plus any additional player benefits. If there was no money deferred, the AAV on Ohtani’s contract would be $70 million. However, any money deferred outside the term of the contract is calculated using its present-day value.
Because the value of a dollar decreases over time, the contract has a present-day value of roughly $460 million for the purposes of the CBT, given that so much of it is deferred for more than a decade. Therefore, the Dodgers will have a CBT payroll hit of roughly $46 million per year for the next 10 years from Ohtani’s contract. Essentially, Ohtani offered to defer this much money in order for the Dodgers to have payroll flexibility to continue building a winning team.”
"Ohtani's 10-year, $700 million deal will include an unprecedented $680 million in deferrals, with Ohtani now slated to make just $2 million per year for each season of his Dodgers' contract, according to The Athletic's Fabain Ardaya. Ohtani will take home just $20 million total from 2024 through 2033, then earn $68 million per year from the Dodgers from 2034 through 2043."
But the Dodgers do take a 46 million hit toward the payroll and tax threshold.
“A team's Competitive Balance Tax figure is determined using the average annual value of each player's contract on the 40-man roster, plus any additional player benefits. If there was no money deferred, the AAV on Ohtani’s contract would be $70 million. However, any money deferred outside the term of the contract is calculated using its present-day value.
Because the value of a dollar decreases over time, the contract has a present-day value of roughly $460 million for the purposes of the CBT, given that so much of it is deferred for more than a decade. Therefore, the Dodgers will have a CBT payroll hit of roughly $46 million per year for the next 10 years from Ohtani’s contract. Essentially, Ohtani offered to defer this much money in order for the Dodgers to have payroll flexibility to continue building a winning team.”
