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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 8:57 pm to
Posted by Speedy G
Member since Aug 2013
3911 posts
Posted on 12/11/23 at 8:57 pm to
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.
Posted by ShaneTheLegLechler
Member since Dec 2011
60329 posts
Posted on 12/11/23 at 9:04 pm to
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 by lynxcat
Member since Jan 2008
24256 posts
Posted on 12/11/23 at 9:10 pm to
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.
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