https://www.mlb.com/news/mlb-players-react-on-social-media-to-shohei-ohtani-s-contract

 

It also surpasses the roughly $679 million Kylian Mbappé would earn if he opts to stay with PSG through 2025...but in terms of actual/present day value, most economists are placing it somewhere around $588 million, a much more complicated version of the Betts deal with a lot of deferred payroll to protect near-term payroll flexibility and stay far away from the second/higher luxury tax threshold.

Edited December 10, 20232 yr by caulfield12

https://www.mlb.com/news/mlb-players-react-on-social-media-to-shohei-ohtani-s-contract

Mark Feisand MLB.com

 

"Per MLB.com’s Mark Feinsand, Ohtani’s deal includes what one source called “unprecedented deferrals,” including the majority of his salary -- which was Ohtani’s idea. He wanted to mitigate the CBT and cash-flow burdens to let the Dodgers have the flexibility to be competitive.

There are also tax benefits because of the deferrals, the source told Feinsand, but they were “primarily about allowing the team to be successful on the field, because above all else, he wants to win.”

That flexibility will be important, as Ohtani now being off the table allows the trade and free-agent markets to get moving -- and the Dodgers still have moves they must make, even with their new superstar in tow. The biggest need is at least a couple of starting pitchers to reinforce a currently thin staff. The biggest available options via trade are the Brewers’ Corbin Burnes, the Rays’ Tyler Glasnow and Dylan Cease of the White Sox, all three of whom the Dodgers have been linked to."

 

Remember this figure he got the next time an owner cries "poor." 

Additional advertising revenue isolated to Ohtani’s impact will pay for the majority of his deal.

Factor in the time value of money and payment deferrals, and the Dodgers may be getting Ohtani for close to free.

This is what the Jerry Reinsdorf’s of the world will never understand, and why the Dodgers are a top team despite not winning a 61 game plus regular season World Series since Kirk Gibson and Orel Hershiser wore Dodger Blue.

https://www.mlbtraderumors.com/2023/12/shohei-ohtani-notes-advertising-revenue-40-man-roster-move.html

Ohtani makes an additional $40M in endorsements annually. Trout is the next highest at $5M.

Quote

Ohtani earned approximately $40MM in endorsement deals last offseason. The MLB player with the next highest endorsement-related income was Mike Trout, who took home $5MM. If Ohtani can personally command so much money, the team he plays for should be able to cash in big as well.

Estimates are he will double the $25M the Angels earned on Ohtani related marketing revenue, not to mention vastly growing the untaxed value of the  Dodgers franchise for years to come.

Quote

Ohtani “brought in $25 million a year.” Both reporters suggest the Dodgers could double that revenue, thanks to their higher level of popularity, both locally and across the globe. At the high end of that estimation, the Dodgers would earn back more than half of Ohtani’s annual salary, and the team is surely hoping he will continue to bring extra value to the franchise long after his ten-year deal is complete.

 

God i would love to hear Reinsdorf’s complaints with the contract. He has to have thrown out some comment anonymously to a writer by now

If LAD gets 50m a year in marketing revenue alone and taking into account deferrals and present value, yeah its almost for free and any WAR above average is a bonus. 

im friends with quite a few people who dislike sports w a passion due to the "spoiled rich athlete" who are prima donnas. This signing sure to give them more ammo....

41 minutes ago, The Grinder said:

im friends with quite a few people who dislike sports w a passion due to the "spoiled rich athlete" who are prima donnas. This signing sure to give them more ammo....

?

19 hours ago, FloydBannister1983 said:

Jerry Reinsdorf has never signed someone to a contract greater than 1/9 of this contract.

Let that sink in.

I’d rather let the tub in. 

12 hours ago, TaylorStSox said:

The economy is far from bad. 

Sixty bucks a shot when I go buy some bananas, paper towels, wheat thins, a deli sandwich, some breakfast rolls. Twenty bucks to fill just over a quarter of my tank. 12 to 16 bucks for a fast food run. Ouch. ... If this post isn't allowed, please kill it. I just felt like responding which is prolly my bad.

7 hours ago, The Grinder said:

im friends with quite a few people who dislike sports w a passion due to the "spoiled rich athlete" who are prima donnas. This signing sure to give them more ammo....

As Howard Cosell said many years ago (paraphrasing), 'You beat odds of 100,000-1 to get to the top of your profession, you deserve to collect big...'

It's funny but I never seem to hear people complaining about how much money singers like Taylor Swift or Beyoncé make or how much money an actor will get for a picture. Scarlett Johansson, Robert Downey Jr., Samuel L. Jackson have made an incredible amount of money but no one complains about them....only athletes.  

Edited December 11, 20232 yr by Lip Man 1

7 hours ago, The Grinder said:

im friends with quite a few people who dislike sports w a passion due to the "spoiled rich athlete" who are prima donnas. This signing sure to give them more ammo....

Last I checked, the MLB Players Union didn't helicopter over $5 Trillion into the economy the past four years.

M2

 

14 hours ago, caulfield12 said:

https://www.mlb.com/news/mlb-players-react-on-social-media-to-shohei-ohtani-s-contract

Mark Feisand MLB.com

 

"Per MLB.com’s Mark Feinsand, Ohtani’s deal includes what one source called “unprecedented deferrals,” including the majority of his salary -- which was Ohtani’s idea. He wanted to mitigate the CBT and cash-flow burdens to let the Dodgers have the flexibility to be competitive.

There are also tax benefits because of the deferrals, the source told Feinsand, but they were “primarily about allowing the team to be successful on the field, because above all else, he wants to win.”

That flexibility will be important, as Ohtani now being off the table allows the trade and free-agent markets to get moving -- and the Dodgers still have moves they must make, even with their new superstar in tow. The biggest need is at least a couple of starting pitchers to reinforce a currently thin staff. The biggest available options via trade are the Brewers’ Corbin Burnes, the Rays’ Tyler Glasnow and Dylan Cease of the White Sox, all three of whom the Dodgers have been linked to."

"Unprecedented deferrals. I like the sound of that."

https://sports.yahoo.com/shohei-ohtani-agrees-to-join-dodgers-winners-and-losers-from-his-historic-mlb-free-agency-213609427.html

13 hours ago, Lip Man 1 said:

As Howard Cosell said many years ago (paraphrasing), 'You beat odds of 100,000-1 to get to the top of your profession, you deserve to collect big...'

It's funny but I never seem to hear people complaining about how much money singers like Taylor Swift or Beyoncé make or how much money an actor will get for a picture. Scarlett Johansson, Robert Downey Jr., Samuel L. Jackson have made an incredible amount of money but no one complains about them....only athletes.  

I’ve heard plenty of people complain about the latter and how much it costs to go to a movie today.

Your first paragraph is true but people deserve to keep their money if the price to watch is too high.

21 hours ago, South Side Hit Men said:

Additional advertising revenue isolated to Ohtani’s impact will pay for the majority of his deal.

Factor in the time value of money and payment deferrals, and the Dodgers may be getting Ohtani for close to free.

This is what the Jerry Reinsdorf’s of the world will never understand, and why the Dodgers are a top team despite not winning a 61 game plus regular season World Series since Kirk Gibson and Orel Hershiser wore Dodger Blue.

https://www.mlbtraderumors.com/2023/12/shohei-ohtani-notes-advertising-revenue-40-man-roster-move.html

Ohtani makes an additional $40M in endorsements annually. Trout is the next highest at $5M.

Estimates are he will double the $25M the Angels earned on Ohtani related marketing revenue, not to mention vastly growing the untaxed value of the  Dodgers franchise for years to come.

 

Spot on. This is huge for the dodgers and they will make their costs back relatively quickly. 

2 hours ago, FloydBannister1983 said:

I’ve heard plenty of people complain about the latter and how much it costs to go to a movie today.

Your first paragraph is true but people deserve to keep their money if the price to watch is too high.

Of course they do, but that doesn't seem to be the case with baseball is it? People still go to see games, in many cases in record numbers. 

1 hour ago, Lip Man 1 said:

Of course they do, but that doesn't seem to be the case with baseball is it? People still go to see games, in many cases in record numbers. 

Actually it seems that they peaked in 2007 and haven’t sniffed that since 2008.  I know we are still coming out of a pandemic but even before it was 10% off the high.

https://www.foxsports.com/stories/mlb/did-the-dodgers-overpay-for-shohei-ohtani-examining-his-700-million-deal

Already talking possibility Soto could eventually a land at $500-600 million mark and 12 years with Boras...

Hard to imagine anyone else but Acuna being in that stratosphere...but he doesn't carry the viewing weight of the 3/4 GDP country in the world nor the ability to pitch at an elite level for 3-5 years still along with him.

 

(Ofc either one of those guys could end up as creative disappointments (see Soto in August/September 2020I...honestly would want Soto for half that amount after watching him consistently for 1 1/2 years.)

Edited December 11, 20232 yr by caulfield12

On 12/10/2023 at 12:45 AM, greg775 said:

These contracts make no sense. Economy: Bad. Ticket prices: Already are too expensive for ordinary fans only going up. Baseball should be played in a studio cause only TV money is keeping it afloat. Good luck if these TV deals fall through some day cause of bankruptcy.

Attendance actually went up league-wide in 2023 vs 2022.

meh.

Edited December 11, 20232 yr by chitownsportsfan

$68 million a year is deferredL

I wish the fans could literally go on strike and demand a salary floor and cap in 2027 or the game dies. 

8 minutes ago, Dick Allen said:

$68 million a year is deferredL

Ohtani or including Betts as well to bring them under tax threshold #2 that bites really deep...?