Ohtani Thread - Special Sheriff's Edition (Update: confirmed going to the Dodgers)

[BaseballIsLife]

Jays shouldve offered more if he was willing to defer that much lmao

 

I think it just illustrates how little of a chance the Jays had at him if he’s taking so little for 10 years to play with the Dodgers.

[glory]

Has MLB approved the deal? I don't believe the deal is official yet. I speculated earlier that the reason the deal has not been announced formally is because there might be some protests due to potentially extreme deferrals. I had not actually expected them to be THIS extreme. This is just pure horseshit.

 

 

Doesn't look like MLB can do anything.

 

This is definitely going to start a trend, especially with teams hovering around the luxury tax. Between this and the RSN troubles most teams are having, especially the smaller markets, I don't see this ending well in a few years when the CBA is up.

[BlueJays]

Lmao. Now they got a chance to get Yamamoto.

[Omar]

 

Yeah this shouldn't be allowed.

 

What are the tax implications for such a large payout at the end of the contract? I would think he would be taxed at a higher rate. Not sure about the US but I know in Ontario when someone is paid out severence at the end of their employment they can negotiate to have it chunked out in increments to avoid one large tax forfeiture.

[Captain_Obvious]

 

Doesn't look like MLB can do anything.

 

This is definitely going to start a trend, especially with teams hovering around the luxury tax. Between this and the RSN troubles most teams are having, especially the smaller markets, I don't see this ending well in a few years when the CBA is up.

 

Actually there is something MLB can do. MLB will not approve very long contracts that reduce the annual payout for players to evade salary tax thresholds. This is why teams do not sign players until they are 45 or 50. This looks very similar.

[JaysAllMighty]

Nice loop hole for the rich teams.

[Sorrow]

I wouldn’t be surprised if small and mid market teams in the next CBA insist on a salary cap with no deferrals.

 

I think we’re due for a big lockout and I don’t think it’s a lockout that is going to end quickly.

 

Seeing s*** like this makes me not even want to watch baseball. I can’t even put how upset this makes me into words.

[BTS]

Maybe Rogers, as MLB's wealthiest owner, can raise hell in the commissioner's office over this nonsense.

[Omar]

Isn't there some provision for the Commissioner to rule "in the best interests of baseball" or something to that effect? Perhaps it doesn't apply within the purview of financial agreements per the cba.

[Captain_Obvious]

I really do not give a f*** if he still ends up with the Dodgers. I just want the Dodgers to have a harder time signing other players because of this contract.

[JaysAllMighty]

How do we know that Jays didn't offer him the same type of deal but just wouldn't go above 700M ?

[Stangstag]

 

Doesn't look like MLB can do anything.

 

This is definitely going to start a trend, especially with teams hovering around the luxury tax. Between this and the RSN troubles most teams are having, especially the smaller markets, I don't see this ending well in a few years when the CBA is up.

 

Holy s*** that’s awful and SHOULD be addressed in the next CBA

[BigCecil]

350M or whatever for Chapman and Bellinger would be so gross.

 

Kind of the s*** place you could get boxed into if you want to compete if you:

 

- Haven't extended your younger best players under market.

 

- Carry 3/75 on Springer. Others FA's marching to back end of their deals.

 

- Traded most of your top prospects and your farm is ranked 20-23rd.

 

- Traded your top prospect for a glove and now need offense (and a 3B).

 

- Your best young developed arm falls off a cliff and uncertain what '24 brings.

 

- Didn't land either of the 2 most impacting players in baseball this off season.

 

- Have a rotation unlikely to be as healthy as '23, so increased offense (and D) could be pivotal.

 

- Haven't developed like you hoped and not enough of your picks have hit.

 

- Your era super stars you were banking on, walk after 2 seasons without a deal, that will cost a boatload.

 

- Just spent a hundreds of millions on renos and raised ticket prices - in a country thats predominantly a hockey market - and you need Corp $ to flow at the RC.

 

Bah humbug.

[Captain_Obvious]

How do we know that Jays didn't offer him the same type of deal but just wouldn't go above 700M ?

 

That does not matter. No team should be able to dodge (f***ing Dodgers) over 30% of the CBT hit through exploiting loopholes. This is not only impacting other teams' competitiveness, but also their revenue.

[philly30]

What a joke, I hope the dodgers never win a playoff game

[glory]

I never thought I’d root for the Yankees or Mets to sign a top starter but I’d rather one of them gets Yamamoto (I’m assuming the Jays won’t) instead of the Dodgers. I think he ends up in LA now though.

[burlingtonbandit]

What are the tax implications for such a large payout at the end of the contract? I would think he would be taxed at a higher rate. Not sure about the US but I know in Ontario when someone is paid out severence at the end of their employment they can negotiate to have it chunked out in increments to avoid one large tax forfeiture.

 

Actually pretty smart because instead of being taxed in California for just over half his games he can now get taxed in a non income tax state like Arizona, Florida, Nevada etc.. (still has to pay fed tax).

 

Since no matter what he will be in the highest tax bracket, so it isn't a direct comparison with a regular employee with a severance package

[Ray]

How do we know that Jays didn't offer him the same type of deal but just wouldn't go above 700M ?

 

There probably were deferrals in the Jays deal, but this is kind of ridiculous. Like 97% of his salary is deferred. 50% I get, but Ohtani is making just over league min the next 10 years lol

[MikeM3]

We could defer 2 billion and he was still picking the Dodgers, guys.

 

Anyone who wants to help his team to this degree means he really really wants to be on that team and win with them

[Marew]

I think his agent just wanted highest dollar amount and convinced ohtani his endorsements being paid now, would make best tax sense to defer later since he won’t be spending that money anyway.

[gruber92]

I think it just illustrates how little of a chance the Jays had at him if he’s taking so little for 10 years to play with the Dodgers.

 

Yup.. The f***er used us for leverage. Piece of s***.

[Terminator]

If he was willing to defer like this Rogers could have blown this offer out of the water. But 800M carries an amount of sticker shock that they may not have wanted to present to shareholders.

[Marew]

Rogers wouldn’t want to defer because my phone contract is less than it was 10 years ago and I have 500x the data

[Dick_Pole]

If the MLB is too gutless to stop this, the State of California should look into it for obvious tax evasion. Because you know the guy plans to move back home or some tax exempt island locale to accept the rest of his money once he retires. Jimmy go call up your DNC pal Newsom and alert him of this.

[Marew]

Yea always knew Ohtani was a scum bag

[Laika]

I think his agent just wanted highest dollar amount and convinced ohtani his endorsements being paid now, would make best tax sense to defer later since he won’t be spending that money anyway.

 

Yeah good point

 

Milk sponsorship money while playing them get the income once retired

[John_Havok]

MLB needs to step in on that deferral. Deferring 97% of your salary is as blatant an attempt to circumvent of the spirit of the luxury tax as there is.

[Rimar]

To sign Yamamoto or Lee, first we need offering the highest amount of cash to their Japanese/Korean teams. Then try reach agreement with the players. If can't convince the players , they can't sign elsewhere in mlb this year, and return to their teams in Japan or Korea.

[Jimcanuck]

If the MLB is too gutless to stop this, the State of California should look into it for obvious tax evasion. Because you know the guy plans to move back home or some tax exempt island locale to accept the rest of his money once he retires. Jimmy go call up your DNC pal Newsom and alert him of this.

 

I am sure Ohtani will comply with Cali's tax laws. If he moves to a another jurisdiction with no income tax, this does not mean payments related to employment in Cali suddenly become tax free.

[John_Havok]

To sign Yamamoto or Lee, first we need offering the highest amount of cash to their Japanese/Korean teams. Then try reach agreement with the players. If can't convince the players , they can't sign elsewhere in mlb this year, and return to their teams in Japan or Korea.

 

That’s not how posting works. When a layer gets posted from Japan, they have 30 days to negotiate with any team in MLB they want. There’s no posting fee just to talk to the player. Teams then sign the players for whatever contract they agree to, and the team who posted him gets a piece of the contract, which has different %s based on total guaranteed money. The way you’re describing it hasn’t been done in years, for good reason.

 

• For Major League contracts with a total guaranteed value of $25 million or less, the release fee will be 20 percent of the total guaranteed value of the contract.

 

• For Major League contracts with a total guaranteed value between $25,000,001 and $50 million, the release fee will be 20 percent of the first $25 million plus 17.5 percent of the total guaranteed value exceeding $25 million.

 

• For Major League contracts with a total guaranteed value of $50,000,001 or more, the release fee will be 20 percent of the first $25 million plus 17.5 percent of next $25 million plus 15 percent of the total guaranteed value exceeding $50 million.

 

• For all Minor League contracts, the release fee will be 25 percent of the signing bonus. For Minor League contracts that contain Major League terms, a supplemental fee will be owed if the player is added to the 25-man roster.

 

• If a posted player signs a Major League contract that contains bonuses, salary escalators or options, a Japanese team may receive a supplemental fee equal to 15 percent of any bonus or salary escalators actually earned by the player, and/or 15 percent of any option that is exercised.