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

You really think Ohtani cares whether he makes $42 million or $110 million next year?

The dude sleeps most of the time he isn't practicing haha.

He's making more than anyone else in baseballs contract on endorsements alone. He could get paid 0 and be fine.

He wants to get himself an easy ring like Durant going to Golden State to make sure he has a legacy of winning championships. That's all he cares about. Im not sure the dodgers are the best option right now but they will keep paying to win. The Rangers have a younger lineup but owe a lot of money to older pitchers.

He makes an incredible amount of money outside of his baseball contract, I seriously doubt he's making these decisions without the assistance of some reputable business minds. He can certainly afford them.

I’ve read it’s basically a 10 year 460 million dollar contract, where he is loaning them back 44 million each year and then they pay him 68 million in ten years (roughly 4% interest rate).

Stupid. I can understand the security of deferring some, but that’s a crap ton of money, get at least half of it now and do some investing or something.

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Well let’s say he makes $70 next year, 10% gains ultra ultra conservative, 77, now do that over 10 years and yeah he is leaving so much money on the table.

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He was never going to get $700 mil without deferring, so I'm not seeing the advantage for the Dodgers or disadvantage for him.

Dude the guy wants a ring, right now, not more short term cash. He’s freeing up money for the Dodgers to make the moves right now to help him get one.

I don’t know why this is going over people’s heads. Any other time we’d be praising someone who didn’t make it all about the money.

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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.

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significantly less than what?

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Wtf? Did you pass Econ 101?

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I understand economics just fine. What I also understand is that he’s deferring the money because he wants to win a few rings. Meanwhile, he will make between $50 million and $75 million PER YEAR on endorsements alone for the next 7 to 10 years, and that’s lowballing. Then, when the endorsement money starts to dwindle, he’s going to get the money from his contract and continue to cash checks after he retires.

Again, pretty smart move.

This is pretty crazy to be allowed. Cool of Shohei to come up with the idea, but bad business.

This should be illegal for two reasons, one as stated just an unfair advantage to pay people into infinity after they’ve retired. There’s not even a good faith negotiation here where it had to be extended etc. it’s a $70m/year deal only paying $2m/year.

And two to save dumb people from themselves. I get that Ohtani makes a ton of money from endorsements so he doesn’t need the $70/year. But the opportunity cost he’s giving up here is more than fiscally irresponsible (in terms of personal wealth) it’s downright idiotic. The compounding interest of $70m/year he’s losing out on, even at a 7% return would have made him a over a billionaire by the time the 10 year deal was over. And he wouldn’t be investing in 7% crap, with his money he’d be directly investing in franchises and businesses etc.

this is why others have said alternatively the dodgers can invest his salary for 10 years and then when they go to pay him it’s essentially free. They’ll pay him essentially the interest and keep the principle. That’s why it should be illegal. It’s shady from a competitive standpoint, and downright reckless from a player standpoint. Again, I know he makes enough money it shouldn’t affect him but that doesn’t make it right.

Like others have pointed out too, another term or two of democrats and his money could literally be worth a tiny fraction of what it should have been. It’s time invested that counts, and he’s giving up 10 years of that. Pretty crazy.

A guy of his stature too, again not hurting for money, but he’s not going to be able to live in LA in a house under $10m. That’s conservative too for this market. Guy gonna be asking players for loans paying off his $20m house only making $2m/year

He would have made over a billion just investing his salary in something stupidly simple like a total stock index fund by the time his deal was up if they paid him fairly and in accordance to his deal.

So “may be a billionaire before the deferments end” would actually mean he lost money.

Which he will, 100% without a doubt. He’ll never be able to make up that 10 year period he’s giving up in compounding interest on investments.

He lost hundreds of millions of dollars by agreeing (or proposing) this deal. Like I said in my post above, even a middle of the road safe investment with a 7% return would have made him worth over $1.1 billion by the time 10 years was up. So he’s losing out on at least $400million by taking this deal.

Which is why it’s reckless for the MLB to have allowed it