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

[Terminator]

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.

 

I trust Nightengale’s tax advice even less than his baseball scoops but…

 

[jaysblue]

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.

 

Spot on.

[Jimcanuck]

I trust Nightengale’s tax advice even less than his baseball scoops but…

 

 

Well that's interesting. I would not have expected such as easy workaround.

[Terminator]

Well that's interesting. I would not have expected such as easy workaround.

 

Same, I’m not sure what the tax implications are exactly. But it’s possible I guess.

[John_Havok]

Well that's interesting. I would not have expected such as easy workaround.

 

If that’s the case, this is the kind of contract that gets politician’s attention and could lead to them taking a loooooonger look at some of the current incredible tax and business benefits MLB enjoys over other businesses.

 

Not to mention MLB taking a loooooong look at the CBT circumvention taking place.

 

This contract is not a good look.

[BTS]

I trust Nightengale’s tax advice even less than his baseball scoops but…

 

 

I thought players got taxed in the state in which they earned their pay. I'm sure I've read about NHL players paying tax in many different states based on games played.

 

Seems wild that Ohtani would be able to earn 700M in Cali, then piss off to Japan and collect 680M of it without a dime going to California.

[jaysblue]

I thought players got taxed in the state in which they earned their pay. I'm sure I've read about NHL players paying tax in many different states based on games played.

 

Seems wild that Ohtani would be able to earn 700M in Cali, then piss off to Japan and collect 680M of it without a dime going to California.

 

Tennis players for tax purposes have their residence in places like Dubai and Monaco. So what happens when they win prize money at a tournament in the US? Is that prize money taxed by the state the tournament was played in? Or based on their residence?

 

So if Ohtani resides back in Japan or somewhere like Dubai after he retires, wouldn't that deferred money not be taxable by California? Only where he resides after?

[John_Havok]

Tennis players for tax purposes have their residence in places like Dubai and Monaco. So what happens when they win prize money at a tournament in the US? Is that prize money taxed by the state the tournament was played in? Or based on their residence?

 

So if Ohtani resides back in Japan or somewhere like Dubai after he retires, wouldn't that deferred money not be taxable by California? Only where he resides after?

 

Not sure what the actual benefits are for a tennis player to have their residences in Dubai or wherever, but if they win prize money in a country, they pay taxes to that country on the winnings.

 

Their residence country may have some tax agreements with certain countries that make tax rates different or something, but they do get taxed in the country they win any money in.

 

I'm looking forward to the tax article someone is going to write in the next day or two explaining how this will work for Ohtani when he leaves California with 97% of his salary being unpaid and untaxed at the state and federal levels.

 

Edit*** So, yes, places like Dubai and Monaco, they have 0 taxes to so they owe no additional taxes to those countries after they pay taxes to the country they won their money in.

[jaysblue]

Not sure what the actual benefits are for a tennis player to have their residences in Dubai or wherever, but if they win prize money in a country, they pay taxes to that country on the winnings.

 

Their residence country may have some tax agreements with certain countries that make tax rates different or something, but they do get taxed in the country they win any money in.

 

I'm looking forward to the tax article someone is going to write in the next day or two explaining how this will work for Ohtani when he leaves California with 97% of his salary being unpaid and untaxed at the state and federal levels.

 

Edit*** So, yes, places like Dubai and Monaco, they have 0 taxes to so they owe no additional taxes to those countries after they pay taxes to the country they won their money in.

 

Thanks.

 

So Ohtani would still have to pay US Federal Taxes, but not the California State Tax afterwards once he makes his permanent residence let's say back in Japan or wherever. He would just owe additional taxes in Japan or wherever he decides to move to afterwards?

[FantasyNewb]

Thanks.

 

So Ohtani would still have to pay US Federal Taxes, but not the California State Tax afterwards once he makes his permanent residence let's say back in Japan or wherever. He would just owe additional taxes in Japan or wherever he decides to move to afterwards?

 

Most tax treaties (including the US/Japan treaty) were created, in large part, to avoid double taxation on the same income.

[philly30]

Never thought I would need an accounting degree to follow baseball

[Abomination]

Tennis players for tax purposes have their residence in places like Dubai and Monaco. So what happens when they win prize money at a tournament in the US? Is that prize money taxed by the state the tournament was played in? Or based on their residence?

 

So if Ohtani resides back in Japan or somewhere like Dubai after he retires, wouldn't that deferred money not be taxable by California? Only where he resides after?

 

I think the tennis players do it to avoid taxes on sponsorships and stuff (not to mention investments). It doesn't hurt that Monaco was smart and created world class tennis facilities with great weather.

[Jimcanuck]

Never thought I would need an accounting degree to follow baseball

 

you don't, unless you have aspirations to work in MLB

 

at least two guys that used to post on this board are now employed by MLB or a MLB team (and not to be an usher)

[philly30]

you don't, unless you have aspirations to work in MLB

 

at least two guys that used to post on this board are now employed by MLB or a MLB team (and not to be an usher)

 

What do they do?

[Stangstag]

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.

 

Right? Like why wouldn’t teams like the Yankees, Mets, Jays etc take full advantage of this trash?

 

Absolutely garbage for the competitive integrity of the sport

[Jimcanuck]

What do they do?

 

Not sure. I think Spanky knows

[Stangstag]

 

Lawl

[DigitalRock]

Right? Like why wouldn’t teams like the Yankees, Mets, Jays etc take full advantage of this trash?

 

Absolutely garbage for the competitive integrity of the sport

 

The league is poorly ran it's a joke.

[Spanky99]

 

Yeah this shouldn't be allowed.

 

What da fuq??? lmao... that's silly.

[Spanky99]

I can't believe how good for baseball this is

 

How so, where's the competitive balance in baseball, this seems like a bad precedent? No.

[G-Snarls]

How so, where's the competitive balance in baseball, this seems like a bad precedent? No.

 

Sarcasm, man

[hanton]

Andrew Friedman: "If you're always rational about every free agent, you will finish third on every free agent."

 

Dec 6, 2016

[Dick_Pole]

I thought players got taxed in the state in which they earned their pay. I'm sure I've read about NHL players paying tax in many different states based on games played.

 

Seems wild that Ohtani would be able to earn 700M in Cali, then piss off to Japan and collect 680M of it without a dime going to California.

 

...at the time the money was earned. Since it's all deferred, it might not be the case. I'm sure in setting up this scam, there's some workaround where the Dodgers will set up some (virtual) satellite office in Ohtani's jurisdiction of choice and pay him $100 million a year to be the IT rep or something.

[G-Snarls]

Andrew Friedman: "If you're always rational about every free agent, you will finish third on every free agent."

 

Dec 6, 2016

 

... Right after he left the poor ass Rays

[connorp]

I don’t get why if he’s deferring 98%, why does he still count against the cap for $46m if deferred money doesn’t count.

[connorp]

Also, agreed I wouldn’t have thought the work around would be so easy on the state tax. So he could just move to FL (or just list his 8th home there as his primary) and pay $0 for state tax.

 

I’m sure Uncle Sam never gets shafted, as it’s US income no matter what. Of course, he’s also probably subject to federal income tax going up, so could be a wash.

[connorp]

It would seem he’s actually just pulling a Tom Brady, and not something more diabolical.

[Jimcanuck]

I don’t get why if he’s deferring 98%, why does he still count against the cap for $46m if deferred money doesn’t count.

 

deferred money does count, but is reduced to present value. we've been over this

[connorp]

deferred money does count, but is reduced to present value. we've been over this

 

I’ve been busy, Jim. I’m not watching CNN and Rachel Meadows all day.

[Spanky99]

Sarcasm, man

 

I don't think so, mentioned it a few times now that I'm reading over this thread, IDK.