Jimcanuck

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)

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

Doesn't work that way anymore

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.

You lost me at Jorge Polanco

Ohtani or Judge for 2024 and beyond? edit - nvm its clearly Ohtani

I don't think the Padres are done unloading salary. ChiSox same? If Jays have big dollars available, then given the FA market now and in the future, as suggested on here before gotta explore taking on bad contracts to get someone like a Robert.

Just boost it after 2024 by trading Bo.

Same would apply, the present value of deferred (future) payments would be applied to the cap.

The luxury tax hit is based on the negotiated rules in place, not what you think it should be.

I don't need to, Passan already posted that present value calculations apply to deferred payments.

As I posted, the competitive balance measure is what the CBA specifies, i.e., the deal negotiated by all parties.

Keep in mind that if Ohtani did not agree to deferred payments, the contract would be something like 10/550..... or a $55M annual luxury tax hit, or in other words $5-10M higher than the calculated luxury tax hit will be for the 10/700 with deferrals

If Ohtani is getting paid $35M a year for 10 years, and the remaining $350M is paid over a further 10 years, then using the present value formula the luxury tax hit for 2024 would be calculated something like: $35M + [$35M / (1+r)^11 + $35M / (1+r)^12 + $35M / (1+r)^13 + $35M / (1+r)^14 + $35M / (1+r)^15 + $35M / (1+r)^16 + $35M / (1+r)^17 + / $35M (1+r)^18 + $35M / (1+r)^19 + $35M / (1+r)^20] / 10 where r = discount rate as determined by US Treasury for 2024 So $35M plus the total present value of the deferred payments / 10 (the deferred payments will be applied to the luxury tax calculations for 10 years)

https://www.investopedia.com/terms/p/presentvalue.asp Present Value=Future Value / (1+r)^n n = number of years in the future the liability is due r = rate of return (also termed discount rate) For engineering life cycle cost analysis I was doing, we used r as set by the Ontario Ministry of Finance. MLB likely uses the value set by US Department of the Treasury. r changes with economic conditions, so Ohtani's impact on the luxury tax is going to vary each year of the contract. My experience with it is in engineering. As an engineering example, you might want to compare the alternatives of rehabilitating a structure vs. removing and replacing with new. The two alternatives will have different costs over the analysis period (for a structure, 100 years is typically used - beyond 100 years the present value of these costs will be comparatively negligible anyway). The future liabilities that apply to each alternative are converted to present value for the purpose of cost comparison. A made up example at a basic level: Rehabilitation - $80M now, next rehabilitation in 25 years $100M discounted to present value, remove and replace in 60 years $250M discounted to present value Remove and Replace - $250M now, 1st rehabilitation in 40 years $50M discounted to present value, 2nd rehabilitation in 70 years etc, etc A more involved analysis will include operating costs and any revenues for each year of the 100 years, which will vary between the existing and new structure. The Jays likely did such an exercise before deciding to renovate the Rogers Centre rather than construct a new facility. Applied to Ohtani's case, it is a method to estimate the true Dodgers payroll cost. Obviously the true cost is not counting future payments as if they are paid today. A dollar 20 years from now does not have the same purchasing power of a dollar today. ​

Its not accountants, its the CBA. The intent of the parties with respect to the luxury tax is what the CBA says. The CBA simply aligns with normal accounting practices.

The deferred money counts towards the luxury tax, but is discounted to present value. This is normal accounting for future liabilities. Every team is subject to the same rules, that were agreed upon by all parties through CBA negotiations. Mid market teams that are contending and flirting with the limit can use deferrals to stay under the limit. At the end of the day, Ohtani had to agree to deferred payment. It's not a unilateral action that a team can take.

Assuming this is true, actually they did have a chance, just had to exceed what the Dodgers were willing to pay

there was no sexy time on my wedding night, we were too wasted hit the spot the next night in Paris

I would agree, and would allow the Jays to kick Espinal to the curb

He's been barely above replacement level for the 2 years after his BABIP fueled ROY

It was a 3 hr test in a roomful of nerds

Jays, but they would say yes if the Reds add a secondary piece

Legally in Ontario they aren't supposed to use that term, but Professional Engineers Ontario hasn't bothered with it

Life cycle costing on engineering projects was a regular activity, for years Also while in high school won the City of London student accounting championship