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Started By
Message
re: 680 million of Ohtani’s 700 mill contract is deferred until it’s over.
Posted on 12/11/23 at 7:44 pm to The Pirate King
Posted on 12/11/23 at 7:44 pm to The Pirate King
quote:
Unless they're sticking the 68 million in an account that pulls high interest, he's going to have significantly less money when he cashes in on that contract just with inflation alone.
What makes you think they didn't account for that by increasing the contract value in the first place?
It would be quite the adjustment, even at target 2%, but manageable. Considering his contract is worth $340 million more than second place all time.
This post was edited on 12/11/23 at 7:48 pm
1
Posted on 12/11/23 at 7:45 pm to KosmoCramer
Replace his 10% with 5% and the point remains.
Posted on 12/11/23 at 7:56 pm to onmymedicalgrind
Cali is going to get their taxes. It's California sourced income no matter where he physically lives when receiving it. I know this from being a South Dakota (no income tax) bordering Iowa (income tax). Iowa source income I had to pay tax on.
Posted on 12/11/23 at 8:03 pm to SPEEDY
quote:
Dude could have been investing that $68 million each year while taking $2 million in salary. What an idiot
A dollar today is worth more than a dollar tomorrow.
Posted on 12/11/23 at 8:23 pm to RB10
quote:what?
Leave the bulk of the contract to be paid later, after retirement. Make a “small” amount now, while also raking in millions in endorsement deals during his prime. Smart
cash now is more valuable than cash later if for no other reason than it can be invested. That doesn’t even take into account inflation
this is the dumbest contract in sports history
Posted on 12/11/23 at 8:24 pm to SoDakHawk
quote:
Cali is going to get their taxes. It's California sourced income no matter where he physically lives when receiving it. I know this from being a South Dakota (no income tax) bordering Iowa (income tax). Iowa source income I had to pay tax on.
If you move and start taking your 401(k), you pay the tax where the money was earned?
Posted on 12/11/23 at 8:31 pm to Fun Bunch
Guys this has less to do with his personal tax situation than it does with luxury tax shenanigans and freeing up money for the Dodgers to use RIGHT NOW.
Dirty, brazen but ingenious.
Dirty, brazen but ingenious.
Posted on 12/11/23 at 8:32 pm to onmymedicalgrind
quote:
Sooooo dumb. Who tf is advising Ohtani?
A group of people who have already made him one of the most endorsed, highest earning players on the planet. Ohtani is going to be obscenely rich by the time this contract concludes.
Posted on 12/11/23 at 8:33 pm to Faulk2Tyler
What endorsements does he have now? I rarely see him on TV.
Posted on 12/11/23 at 8:37 pm to JimTiger72
quote:
Does he avoid paying CA taxes doing it this way?
That 680 million he is deferring 10 years is worth over 1.5 billion with an additional decade for it to grow in a basic index fund. There is no tax scenario where deferring that much money for ten years is a smart financial move. This is all about wanting to win championships with the best team the Dodgers can afford to buy.
Posted on 12/11/23 at 8:39 pm to cgrand
What this contract tells me is the guy wants to play in October bad enough RIGHT NOW that he’s bought into making sure the Dodgers have enough free money RIGHT NOW to do what it takes to get there.
Of course what he should have done is insist they get a new manager …
Of course what he should have done is insist they get a new manager …
Posted on 12/11/23 at 8:41 pm to CRDNLSCHMCPSN11
quote:
What endorsements does he have now? I rarely see him on TV.
You watch much Japanese TV?
Posted on 12/11/23 at 8:54 pm to KosmoCramer
I know he has at least one endorsement in the US. I forgot who it is though.
Posted on 12/11/23 at 8:55 pm to CRDNLSCHMCPSN11
New Balance?
Posted on 12/11/23 at 8:57 pm to MillerLiteTime
Had he not agreed to defer 97% of the money, he would not have gotten $700MM.
Teams and agents understand the time value of money lol.
Teams and agents understand the time value of money lol.
Posted on 12/11/23 at 9:04 pm to Speedy G
I haven’t done it but there’s simply no way the PV calc comes out to a number that’s considered good for him when you consider what he was expected to get going into free agency. If he values winning that much to structure it like this then good for him. It sounds like he wanted to do it this way. But that’s putting a lot of faith in an ownership and front office to spend money you are effectively forfeiting wisely
Posted on 12/11/23 at 9:10 pm to Speedy G
Correct, the value of the contract would have been significantly smaller if designed traditionally. Pretty cool “break even” calculation considering the tax savings and the PV of that future payout.
Posted on 12/11/23 at 9:10 pm to InkStainedWretch
quote:
Guys this has less to do with his personal tax situation than it does with luxury tax shenanigans and freeing up money for the Dodgers to use RIGHT NOW.
Dirty, brazen but ingenious.
No one is arguing that this is a dumb move by the Dodgers, particularly when it comes to team building in the short term.
It is an idiotic by Ohtani from a personal finance perspective.
Posted on 12/11/23 at 9:11 pm to phunkatron
quote:
A group of people who have already made him one of the most endorsed, highest earning players on the planet. Ohtani is going to be obscenely rich by the time this contract concludes.
Thank you for this meaningless post.
Posted on 12/11/23 at 9:12 pm to KosmoCramer
Possibly. I can't recall.
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