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Baseball peeps, a couple of questions regarding the dodgers/league

Posted on 8/2/26 at 1:18 pm
Posted by Civildawg
Member since May 2012
10650 posts
Posted on 8/2/26 at 1:18 pm
1. Why are the dodgers not having to share TV revenue? That seems like it's a major advantage.

2. Why has baseball not had a salary cap when all other major sports leagues do have one? Seems like implementing one shouldn't be too big of an issue.

3. What the heck is with the deferred contracts I keep hearing about with the Dodgers? Are they literally not having to pay the majority of the contract until years later?
Posted by JetsetNuggs
Member since Jun 2014
15672 posts
Posted on 8/2/26 at 1:22 pm to
Yes
Posted by WestCoastAg
Member since Oct 2012
151379 posts
Posted on 8/2/26 at 1:24 pm to
Posted by speechles
Member since Jan 2013
1378 posts
Posted on 8/2/26 at 1:24 pm to
At least two of those points are why we won’t have MLB next year
Posted by TigerintheNO
New Orleans
Member since Jan 2004
45516 posts
Posted on 8/2/26 at 1:25 pm to
Deferring substantial income aims to reduce current luxury taxes and potentially avoid California’s 14% state income tax if the athlete moves out of state before payouts begin.
Posted by CodeName1
Member since Mar 2021
238 posts
Posted on 8/2/26 at 1:29 pm to
Dodgers are capped at the amount they have to share. Leaving them with an additional $60-$65 million a year.

There is a cap. You pay a “luxury tax” if you go over it.

In simple terms yes. Deferred money is not against the rules of the current collective bargaining agreement
Posted by lurking
Member since Nov 2022
3632 posts
Posted on 8/2/26 at 1:51 pm to
quote:

Dodgers are capped at the amount they have to share. Leaving them with an additional $60-$65 million a year.


More than that. This is the result of the league agreeing to a TV market evaluation of $3 billion during the 2011 bankruptcy proceedings. An evaluation they previously rejected because it was comically low.

The Dodgers are operating under a different set of financial rules than everyone else and keeping tens of millions of dollars yearly every other franchise would have to pay as part of the revenue share agreement.

It’s a joke and needs to addressed.
Posted by theballguy
HSV (Dealing only in satire)
Member since Oct 2011
42899 posts
Posted on 8/2/26 at 2:09 pm to
quote:

There is a cap. You pay a “luxury tax” if you go over it.



Why they don't increase the "luxury tax" is baffling.
Posted by WestCoastAg
Member since Oct 2012
151379 posts
Posted on 8/2/26 at 2:32 pm to
quote:

It’s a joke and needs to addressed.

this will almost assuredly still exist no matter what happens this winter lol
Posted by lurking
Member since Nov 2022
3632 posts
Posted on 8/2/26 at 2:42 pm to
quote:

this will almost assuredly still exist no matter what happens this winter lol


MLB has already announced their plan to centralize broadcasting rights and eliminate regional, team specific deals.

Appreciate you admitting the Dodgers are operating at a distinct advantage instead of pretending they’re the model for all MLB teams to follow, though
Posted by WestCoastAg
Member since Oct 2012
151379 posts
Posted on 8/2/26 at 2:43 pm to
quote:

MLB has already announced their plan to centralize broadcasting rights and eliminate regional, team specific deals.
so we will see them in the late 2030s with the dodgers

What kind of secret, hush hush, deal we think the dodgers get then?
This post was edited on 8/2/26 at 2:47 pm
Posted by LSUBoo
Knoxville, TN
Member since Mar 2006
104590 posts
Posted on 8/2/26 at 2:51 pm to
quote:

3. What the heck is with the deferred contracts I keep hearing about with the Dodgers? Are they literally not having to pay the majority of the contract until years later?


Yes. Ohtani is the main example. His contract is $700m for 10 years, but the 10 years he's playing he's making $2m salary then $68m per year for the 10 years after. MLB only counts this as a $46m luxury tax hit in 2026 based on some calculation of the "present day value" of that future payment.

This will definitely be a big argument point in the off-season.
Posted by lurking
Member since Nov 2022
3632 posts
Posted on 8/2/26 at 2:52 pm to
quote:

What kind of secret, hush hush, deal we think the dodgers get then?




Posted by dblwall
Member since Jul 2017
2115 posts
Posted on 8/2/26 at 3:13 pm to
quote:

What the heck is with the deferred contracts I keep hearing about with the Dodgers? Are they literally not having to pay the majority of the contract until years later?


Google Bobby Bonilla

Posted by WestCoastAg
Member since Oct 2012
151379 posts
Posted on 8/2/26 at 3:14 pm to
Im thinking they get like an extra draft pick. Or access to special tax generates revenue!!

Idk what it is but I'll be excited to see what it ends up being
This post was edited on 8/2/26 at 3:15 pm
Posted by lurking
Member since Nov 2022
3632 posts
Posted on 8/2/26 at 3:20 pm to
Nothing about any of this was done in secret, dummy.

The opposite, in fact. Guggenheim pointed to the settlement granting the Dodgers evaluation at $3 billion as being a major factor in their decision to purchase.

They knew it would grant them an advantage.
Posted by WestCoastAg
Member since Oct 2012
151379 posts
Posted on 8/2/26 at 3:23 pm to
quote:

settlement
that MLB gave them smh!!!!
Posted by lurking
Member since Nov 2022
3632 posts
Posted on 8/2/26 at 3:26 pm to
quote:

WestCoastAg


Posted by Zappas Stache
Utility Muffin Research Kitchen
Member since Apr 2009
43681 posts
Posted on 8/2/26 at 3:50 pm to
quote:

1. Why are the dodgers not having to share TV revenue? That seems like it's a major advantage.


Bankruptcy Court in 2012 set a fair market value for dodger media rights which turned out to be lower than what those media rights actually are. It works out to about $80 million per year the Dodgers get to keep which the critics say gives the Dodgers a monetary advantage. But even if the Dodgers were paying that extra $80 million a year it would not have prevented them from paying Ohtani and the other big names they have signed.

quote:

Why has baseball not had a salary cap when all other major sports leagues do have one?


Because the players want a free market and have fought over the years and gone on strike to maintain this free market. The NFL, NBA, etc salary cap favors the owners. The question is why don't NFL and NBA players strike to get a free market system?

quote:

What the heck is with the deferred contracts I keep hearing about with the Dodgers? Are they literally not having to pay the majority of the contract until years later?


Yes but deferred payments have been around a long time and have been used by many other teams. People are crying about it now because its not their team using it.

The lockout that is coming is not because the Dodgers are spending money but because the owners don't want a free market system. They want more money for themselves. frick 'em.

This post was edited on 8/2/26 at 5:01 pm
Posted by WestCoastAg
Member since Oct 2012
151379 posts
Posted on 8/2/26 at 3:53 pm to
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