John_Havok

Yeah watch it end up being 350 million in real dollars but like 210 for luxury tax purposes. Gotta hand it to them for taking advantage

He was placed on waivers and claimed 2 weeks ago.

Yeah but Sasaki won’t be like the usual postings we see since he would be under 25. He’d be subject to the annual international spending caps.

For Ohtani it’s about being paid little now in order to put a winning product on the field. The incredible side benefit being that he’s going to sidestep American income taxes on 97% of his salary over the next 20 years. For the Dodgers, it’s about paying a guy less and later for what he gives you now, and the side benefit is absolutely about boning the luxury tax system.

It does count, it's just spread out over more years

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.

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.

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.

The asylum

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.

Except Varsho is even more of a dead pull hitter, just doesn’t have a kids power. Varsho trying no to go the other way last season was attempted and failed horribly. Guys like Whit, Espinal etc, those are the guys who should be looking the other way since they really don’t have pull power.

Oddly enough, I hope they win multiple WS as a result. Would be a crime to see a trio of MVP-level players not get at least 1

I'm guessing close to Richard Pryor or Dennis Leary in their primes kind of levels. Maybe up to Hunter S Thompson levels, but I doubt they'd have access to adrenochrome.

You accountants need to stop conflating the luxury tax in MLB as being the same as real world accounting. Some principles may be the same but the luxury tax is completely made up and functions only within MLB. The intent of the luxury tax is not the same as the real world.

Yeah, it defeats the entire purpose of the luxury tax. I hope it’s not something that continues like…next season with Soto. It’s a bad precedent

Well here’s the thing, did Ohtani also allow for the Jays to make an offer with deferred money? Or ..did he wait for the offers, pick one and then decide to tell the Dodgers…I pick you and now we’re going to defer a huge chunk of salary to ensure you can still spend elsewhere and avoid luxury tax.

Nah. There was a serious effort to land him, the people reporting signings were more than likely just trying to be “the first guy” to report something and we’re guessing. Whomever it was that suggested Ohtani gave the Dodgers the chance to match any offer …that makes sense. It seems he was always leaning that way but doing his due diligence. The only think that bothers me about the signing is the way the Dodgers are now getting a massive break on the luxury tax. That’s a loophole that shouldn’t exist. The luxury tax penalty should,only be calculated on the 10/700 average, not the deferral stuff. I like the ability to defer salary as an option, it gives lower budget teams a shot at retaining higher end talent rather than losing them or signing upper tier guys (not guys like Ohtani…but star players). Using deferrals to keep actual dollars spent down makes sense. Avoiding luxury tax penalties should not be a factor. The optics and reality of high spending teams deferring money to avoid the luxury tax is pretty low.

JD Martinez for DH. Lee for the OF Yamamoto for SP For trade...target Kim from San Diego. He's not a must-move for Preller but they are looking to get younger and cheaper. They were already talking about players leading up to the Soto trade so could pick up there.

WS betting odds after the Ohtani signing and Soto trade. Dodgers are favorites at +550 Braves +650 Jays, Yankees, Astros, Rangers at +900 Phillies +1000 Orioles +1600 Rays +1800

what about 2nd place in the provincial Remembrance Day poetry competition? Asking for a friend...

K. I believe you. I doubt Steer is even available though. Cinci can just move him to 2b/OF and trade India for the bag of balls he is worth. They wouldn’t likely be looking to trade Steer while he’s still making the minimum and have places for him to play.

didnt you trade Manoah, the non-catcher a second ago? You also forgot about Green and have to DFA like 2 more dudes to make the 40 man roster work

Whomever locked the Ohtani thread when I was about to destroy the fake accountant, you’re a dick.

Because the contract doesn’t end up being 10/700, it’s ends up being like 25/700. That’s the simple way to explain it

The luxury tax in MLB has nothing to do with individual or corporate tax though.