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2024 MLB Season: Paul Skenes to Debut On Saturday (5.11) Against the Cubs

He is unique in his ability offset deferred compensation with endorsements dollars now but it isn't really a stretch to imagine other financially set veterans would be agreeable to similar arrangements.
 
Liquid Karma said:
He's an idiot if that deferral is interest free.
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That kind of assumes $700 million for 10 years with no deferral was on the table and he just said give 97% of it to me deferred, which seems … unlikely.

I do think Ohtani probably took less than he otherwise could have demanded to sign with the Dodgers and give them cash flow during his playing years to build the best team money can buy because he wants to win. But I don’t think it is nearly as much as people are making it out to be (or that he and his team made poor financial decisions).

Using the MLB reported discount rate for luxury tax purposes, you can think of his contract as a 10 year, ~$46 million/year deal, which would still be the largest in MLB history. Could that have been 10 years, ~$50 million? Maybe (maybe even probably). But I don’t think there’s any real chance that it could have been 10 years, $70 million.
 
Right, we've seen some with other contracts with deferrals, agents (and sometimes players) might take favorable terms from the team to get a larger $ amount as the price on the contract.

Just making up numbers here, not doing the actual math, but if the Dodgers were willing to pay $650MM with $50MM in interest or $700MM with no interest, the agent and player is likely to prefer the later because the story is then about the $700MM contract, and the $ amount is the same.
 
You have to use a very conservative discount rate to get to $460M present value (like ~5%). Seems like you could reasonably argue the PV of the contract is even lower than that, in the mid to upper $300's. I'd love to see the more detailed math and assumptions used to get to the valuation.
 
For Deac's Sake said:
You have to use a very conservative discount rate to get to $460M present value (like ~5%). Seems like you could reasonably argue the PV of the contract is even lower than that, in the mid to upper $300's. I'd love to see the more detailed math and assumptions used to get to the valuation.
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The discount rate is 4.43% - the CBA specifies that they use the mid-term AFR for the October of the year preceding the contract year, in this case, 4.43%.
 
Dodgers and Rays talking trade for Tyler Glasnow. FWIW, I would never trade with the Rays; even when the trades seems one-sided against them, they always seems to get the best of it.
 
New details by Ken Rosenthal on Ohtani’s contract says it includes a year end and immediate termination of deal if there is any “significant” change in Dodger personnel. No other details on who that would include. Interesting.
 
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He’s expected to, but hasn’t signed yet. Dodgers can use the leftover Ohtani money
 
DeacsPop said:
New details by Ken Rosenthal on Ohtani’s contract says it includes a year end and immediate termination of deal if there is any “significant” change in Dodger personnel. No other details on who that would include. Interesting.
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It’s if the Dodgers got rid of his personal interpreter. Ippei has been with Ohtani since Ohtani was 18 and is like his best friend
 
Yamamoto to the Dodgers also, unsurprisingly, looks likely.
 
Pilchard said:
FWIW, I would never trade with the Rays; even when the trades seems one-sided against them, they always seems to get the best of it.
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IMO, the Rays Org is the best in baseball. It is really a shame they don't get more support from Tampa...too many old people? IDK, but if one Org does move here to Nashville (recently heard Rays, Brewers and White Sox) i would love it to be the Rays.

I say this as a Yankees fan
 


Glasnow has all of the talent in the world, but given his injury history, this is a risk that the Rays and really most teams can't take.
 
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