2023-2024 Hot Stove Thread

[reyes the roof]

Re: 2023-2024 Hot Stove Thread

If the internet is right - particularly this article (and lets face it the internet's never been wrong) - then the CBT salary is calculated as the Average Salary over the duration of the contract ($2M in Ohtani's case) plus the Present Value of the average annual deferred money in the last year it is deferred (so the $68M due in 2043 in present value is $44,081,476 assuming the interest rate referenced in the article is correct - and assuming this Google search on how to calculate present value is also correct).

So in essence, Ohtani's contract will be valued at 10 Years, $460M.

Good stuff, now that you mention it I do remember reading something similar about present value of deferred money counting against the tax when the Mets deferred money in the Edwin Diaz contract

[p_rushing]

Re: 2023-2024 Hot Stove Thread

I had no clue it would be this bad. This is making a mockery of the sport. Who knows if MLB will still be around then. Twenty years in the future and the dollar may be gone. This guy and his advisers are incredibly stupid. There could be a new cap and the Dodgers collapse because they have no cap room left, lose money, and file bankruptcy.

How is this allowed? MLB needs to step in and say no for the health of the game.

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[DrJones]

Re: 2023-2024 Hot Stove Thread

I had no clue it would be this bad. This is making a mockery of the sport. Who knows if MLB will still be around then. Twenty years in the future and the dollar may be gone. This guy and his advisers are incredibly stupid. There could be a new cap and the Dodgers collapse because they have no cap room left, lose money, and file bankruptcy.

How is this allowed? MLB needs to step in and say no for the health of the game.

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Ohtani makes $50M per year in endorsements right now, and that is only going to go up.

If MLB and the American dollar are "gone" in the next 10-20 years, I'd say we're all in a lot more trouble than Ohtani.

[Master Live 013]

Re: 2023-2024 Hot Stove Thread

I could see a new rule in the future, but not retroactively. Plus this rule was collectively bargained I guess, so nothing MLB can do unless the "in the best interest of baseball" thingy can override a collectively bargained provision, which I doubt it.

If Ohtani is fine with it and it is legal under the rules then it is what it is.



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[Ghost Of The Year]

Re: 2023-2024 Hot Stove Thread

The Dodgers are giving the A's ''Moneyball'' thingamajig a whole new meaning. On the downside, if this is the wave of the future, it could finally lead to the contraction of a couple teams MLB wanted to do twenty plus years ago.

[zello144]

Re: 2023-2024 Hot Stove Thread

https://twitter.com/edwards21228/sta...bIn3IsQXw&s=19

Just seems ridiculous

If that 68 Million a year avoids those California taxes...That's a huge win for Ohtani in retirement.

[CBoller1331]

Re: 2023-2024 Hot Stove Thread

If that 68 Million a year avoids those California taxes...That's a huge win for Ohtani in retirement.

I read somewhere that he will get a tax break if he is living outside of the US those years, which could be likely if he goes back to Japan.

I wonder if he'll go back to the NPB for a few years after the contract is up. He'll be 39, so maybe still another year or two left in the tank.

[LegendKillerOne]

Re: 2023-2024 Hot Stove Thread

Contract made a joke of the MLB system in my opinion. And to think if Steve Cohen would have done that they would have wanted a new rule right away. I hope as a Mets fan he uses this and next year does the same thing. Give Soto 800 million with deferred, etc.

[canes21]

Re: 2023-2024 Hot Stove Thread

If that 68 Million a year avoids those California taxes...That's a huge win for Ohtani in retirement.

Probably not avoiding Cali taxes or any other state taxes for all the locations he plays at over the life of the contract. The states will be able to argue when and where the money was earned.

[reyes the roof]

Re: 2023-2024 Hot Stove Thread

I don’t see why everyone is so bent out of shape over the deferred money. Ohtani hit the powerball and chose the 20 year annuity instead of the lump sum

[The Kid 24]

Re: 2023-2024 Hot Stove Thread

MLB needs to do something about how *** **** boring the offseason can be.... They need to implement a deadline or something for deals to be done by.

This gets old year after year after year.

[Bard]

Re: 2023-2024 Hot Stove Thread

Seth Lugo & Chris Stratton to the Royals.

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[cjonesfan921]

Re: 2023-2024 Hot Stove Thread

If that 68 Million a year avoids those California taxes...That's a huge win for Ohtani in retirement.

I'm not an expert on CA taxes, but I believe they give a break on deferred compensation if it's over a 10 year period if he's a nonresident after.

Generally speaking, he will owe Federal taxes on the money, regardless. I'm unsure on CA. It's still US sourced income.

[Bard]

Re: 2023-2024 Hot Stove Thread

Jung Hoo Lee to the Giants, 6 year deal. Opt out after 4 years.

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[CBoller1331]

Re: 2023-2024 Hot Stove Thread

Rowdy Tellez to the Buccos 1 year $3.2M