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re: 680 million of Ohtani’s 700 mill contract is deferred until it’s over.

Posted on 12/11/23 at 5:02 pm to
Posted by RB10
Member since Nov 2010
45016 posts
Posted on 12/11/23 at 5:02 pm to
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
Posted by onmymedicalgrind
Nunya
Member since Dec 2012
10669 posts
Posted on 12/11/23 at 7:36 pm to
quote:

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


Tell me you don't know anything about finance without telling me you don't know anything about finance.

Deferring payment on a contract for a decade without getting some type of interest is the definition of stupid.
Posted by cgrand
HAMMOND
Member since Oct 2009
40286 posts
Posted on 12/11/23 at 8:23 pm to
quote:

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
what?
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 by elposter
Member since Dec 2010
25532 posts
Posted on 12/11/23 at 9:29 pm to
quote:

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


Wtf? Did you pass Econ 101? Look we all know Ohtani (and his great great grandkids) will be fine but deferring $600 million to be paid years from now is almost never going to be “smart” from a purely economic standpoint (whether it’s smart from a competitive standpoint is another question and it probably is so frick the Dodgers for pulling that off). But back to Ohtani’s finances, never underestimate the time value of money. Also, not really a risk in the case of a MLB franchise paying up, but also never underestimate the value of cash in tbe bank over promissory notes.
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