The Dodgers are Only Paying Ohtani $2M a Year for the Next 10 Years?!?!? | The Rich Eisen Show

Rich Eisen reacts to Shohei Ohtani deferring a whopping $680 million of his record-setting Dodgers contract to be paid after his career to allow L.A. to pursue other free agents.
Tune in to the Emmy-nominated Rich Eisen Show live for FREE on The Roku Channel at go.roku.com/thericheisenshow and also streaming on Audacy, Sirius channel 161 and XM channel 206 (Online channel 998) weekdays from 12--3 PM ET!
Showcasing insightful sports expertise with an offbeat mix of humor and pop culture, The Rich Eisen Show attracts the most recognizable names in sports and entertainment.
Subscribe here to keep up with the internet's best sports and pop culture commentary, interviews, and much more!
------ SUBSCRIBE HERE:
bit.ly/2VjWSBC
FOLLOW US HERE:
/ richeisenshow
/ richeisenshow
/ richeisenshow
/ thericheisenshow
www.audacy.com/richeisen/listen
#shoheiohtani #mlb #dodgers

[@FrankPark-mo4mq]

Shohei already brings in $50 million outside of baseball. Dude doesn't care about the money in baseball, cares more about being on a winning team.

[@omarochoa8690]

If anything his gonna make more his gonna make the double maybe even the triple outside the field

[@froggotees8449]

He doesn’t care about money at all.. even his parents doesn’t want to receive any money from him.

[@longdayer]

Should have picked a different team. Dodgers are not winning anything except highest payroll. Pitchers are needed for the short term. Ohtani doesnt count

[@omarochoa8690]

@@longdayer if he was on another team he wouldn’t not be breaking news like he is rn and nobody would of pay attention or care for him for his contract it would of been the same like the angels 😂hates gonna hate

[@joka5345]

😂😂😂😂 Stop it.

[@jayceh1031]

Ohtani actually offered to defer 100% and his agent told him it is illegal to play for free. Dude is just built different. 😂🤣😂

[@darex0827]

man wants victories. He'll get the cash, but that's for tomorrow when you're done playing and its time to live your new life.

[@krystalissoojung5114]

😮😮😮😂😂😂😂😂

[@DW-op7ly]

I don’t think he said illegal… just said, well you can’t play for free

[@wilcoout]

@@DW-op7ly I think if you factor in labor laws in CA plus players in the MLB are all considered "professionals" and therefore have to be paid league minimium, it would be illegal to play for free. Kind of like how a CEO takes a $1 salary when the company screws up and shareholders are pissed. He can't not make a salary.

[@joka5345]

He already makes 40 million a year from endorsements

[@pandemic7]

He is a fucking unicorn. The best player the game has ever seen and he cares more about winning than money.

[@user-uv9oy1qp5m]

Ever ? Lol

[@capicu7660]

He’s the best two-way player I’ve seen, but the best was Barry Bonds…Sorry Dodgers fans…

[@ginoinencino2528]

Omg no he doesnt. Not gonna say baseball is rigged, but you have to look at it from a biz standpoint. The Dodgers,Yankees all big market teams are just the rising tide that lifts all boats, as in the small market teams. LA is there to push teams like SD & AZ, the ones who need a title & thus more revenue. MLB is a biz

[@onespeedlite]

Ohtani: "Keep your money. I'll ask for it later when I need it." Dodgers: (Jaw drop) Deal!

[@enshk79]

Haha love it

[@NT-or9wh]

Dodgers really went the Buy Now, Pay Later path. Affirm or Klarna need to sponsor Ohtani.

[@Somewondude]

😆@@NT-or9wh

[@Keys222thecity]

Humble guy

[@surfwriter8461]

Right. Eisen doesn't seem to realize that Ohtani is the one who presented this deal to the Dodgers and possibly other teams he negotiated with. The Dodgers didn't present this in their offer. Ohtani asked if they would go for this deal so that he could give the team a chance to sign other players this year and beyond. Talk about generosity and different priorities than money money money. Ohtani may get most of the money in 10-20 years from now, but it won't be worth as much after inflation and other factors depreciate the value.

[@SolomonLi]

Apparently, not only did Shohei suggest this… originally, he wanted to defer ALL of it!!! LOL.

[@jmorris023]

He might be a great player, but I don't think he understands Net Present Value.

[@WangRealEstate]

@@jmorris023 he probably does. Dude is probably surrounded by lawyers and accountants. It won't be a $700m deal if he wants get paid now vs later. Also money is probably secondary to winning for him. Keeping initial salary low will help with his chance of his winning, and the more he wins the more endorsements he gets

[@grantmatteson1273]

​@@WangRealEstateand what's wild is he is making 50 million already off the field bro.... As a dodger.. going to the playoffs pretty much every single year.. that number could double.

[@jmorris023]

@@WangRealEstate I get it, but he basically got nearly the same contract as Trout if you NPV the deferral. You have a point about the endorsements.

[@jobunaga4178]

@@jmorris023 you don't understand california taxes. he's going to save $90M by doing this.

[@Biz613]

And he’s not charging them interest on the payments which blows my mind.

[@brianmaietta]

you kidding? this is the best for him. because after 10 years he is going to establish residency in a state that has less taxes than california, will not have to pay per state payment tax that athletes typically play.

[@HKim0072]

Most of the deferred contracts don't have interest now.

[@panner11]

@@brianmaietta You really think the taxes will outweigh 10 years of inflation and missed investment opportunity? This isn't valuable as a tax dodge, deferring will cost him a ton in the long run, but if helps the team win now, I guess it's worth it for him.

[@HKim0072]

@@brianmaietta Dude - you need to learn about compound interest. I'll take the interest and pay the state tax. You can take the no interest and no state tax. (I'll be way ahead)

[@zhoubaidinh403]

If you collect interest on the deferred payment, then the calculation on the cbt taxable income would be 70 million, not the discounted 46 million

[@joer1678]

The Dodgers will make so much money off this deal. He is the most famous baseball player in the world and they just cornered the rest of the world market

[@grantmatteson1273]

Bro and ohtani makes 50 million off the field. And that number could double. There hasn't been this perfect of a match between player and organization in a looooooong time

[@noneyabusiness88]

​@@grantmatteson1273they'll both regret it in the end. Maybe 1 ring and once he's gone, they won't have a team. He will regret it because inflation will eat away at his money. Imagine buying a loaf of bread for a million dollars. We aren't far off. Closer than most know.

[@damiand323]

@@noneyabusiness88 🤣🤭

[@OutOfSightOutOfMinddd]

@@noneyabusiness88 Why would he regret it? Obviously he doesn't care about money in general, he would not sign a deal like this if his main motivation is earning every last drop of $$$ from the dodgers. He clearly wants to build a super team and win.

[@hjermsted22]

If they're smart, they'll tuck most of that windfall away for 2034 starting immediately.

[@kayono9357]

Because Shohei was a victim of the contract money between Angels and Rendon. He avoids becoming Rendon. His contribution as a member of the Dodgers already started when the first scout came to Japan. There's a long hart warming story behind their contract.

[@joeqb5992]

What’s that story? Sounds interesting

[@kayono9357]

I do my best writing in English. The Dodgers scouts visited and contacted Shohei three times from his high school to the Nippon Ham Fighters era. Did you see his Mandara Chart? He wrote " At 24 years old: Win the World Championship @ Dodgers" when he was in high school. National League was not a DH system at the time he landed. Now it's a time for both Shohei and the Dodgers to have mutual affection. Shohei finally reworded their"Tribute to the Sanko" old Chinese proverb.

[@kayono9357]

It might be better to use transration fetures if KZbin has.　翔平は高校時代から日ハムに入団してからも3度、ドジャーズのスカウトからコンタクトと受けて、自身でも曼荼羅チャートに24歳、ドジャーズで世界チャンピオンと夢を高校時代に語っていた、いわば、相思相愛にも関わらず、当時は二刀流が出来るDH制度がナショナルリーグに無かったので、エンジェルスと契約。ようやく、DHも整ってドジャーズの期待に応えられる機会が出来て、翔平はドジャーズに”礼”を尽くしてくれたドジャーズに報いてあげる事が出来て、嬉しいだけだと思う。契約金で苦しむエンジェルスを2年も見てきたので、ドジャーズで自分の報酬の為に補強や育成が出来ない事はチーム第一主義の翔平には耐えられない事だから。

[@jonfernandez4271]

@@kayono9357 That's a good job writing in English. It's true, the Dodgers have been in love with Ohtani since he was in high school and he grew up a Dodgers fan.

[@joeqb5992]

@@kayono9357 that is good writing! But that is a nice story. I hope this story gets out so Dodgers fans know. Thank you.

[@mj7000]

Shohei Otani is no fool. Perhaps in 10 years, when hyperinflation hits and the current value of money is as good as scrap paper, Ohtani may even be ready for it. It can be said that this is a contract that does not count on deferred payment. It is definitely a contract that he could lose money on. It is not a contract that other players can make. That is how much he craves winning. Winning is more important than money. In a good way, Shohei Ohtani is crazy. To add, Shohei Ohtani's parents and family members each continue to work. No one in the family is dependent on Shohei Ohtani, who earns a lot of money. When Otani offered to pay for the renovation of his parents' home, they refused. The Japanese family's financially independent way of life has certainly had a great influence on Shohei Otani's way of life.

[@jackxiao9702]

I think because it’s deferred, it’s 700 million. Non deferred contract in the market was probably 600 million, so they bumped it 100 million to account for inflation and interest.

[@lm-pw9ul]

He could buy a lot of gold, properties or other valuables with money.

[@marukianson5202]

I am not gonna touch this much as I am not expert for it, but knowing Ohtani has no interest for money since he joined the Angels, I can say he is the only person who would request such thing like this, and my I am hoping he can win the world series in these 10 years!

[@omgbygollywow]

During his time in NPB, his mother had given him a stipend of $900 a month, and he did not even spend all of it. He did not even have a drivers license because he lived in the dorm and just trained all the time.

[@shin12357]

He offered to rebuild his parent's house and they said no. His parents fixed their current house and refused any support and told him to save money. I guess its in the genes.

[@enamweaknopahknop9661]

Well at least we can say he is raised right. Shohei is humble and happy with absolutely negative ego. Usually a guy like that never have this much skill, he breaking every single stereotype.

[@oneone3976]

When he was a member of a professional team in Japan, he would not go to any of the team's parties. One of his teammates said to him, "What if people don't like you because you keep refusing to go out for drinks?" But Otani replied, "I don't need alcohol to become the best player in the world. If I become the best player in the world, everyone will like me." This guy is crazy.

[@XxXDestroyer]

This is actually so smart. Ohtani doesn't need the money since he makes millions outside of Baseball, so he's happy to take less for the better of the team and not limit them. The Dodgers got one hell of a deal here.

[@Texansfan59]

At the end of the day he is still gnna get that money just when he is retired and rdy to live a good life lol

[@XxXDestroyer]

@@Texansfan59 Yeah but a literal decade later lol. And long after he already generated far more than $700M for the Dodgers org, his contract will pay itself in a matter of years.

[@stephaneg9591]

I wonder why people in America can't understand Ohtani's way of thinking. He doesn't play baseball for the money. His goal is for his team to win and become number one in the nation. It is no wonder that the contract money is used effectively for this purpose.

[@Harcorwrestler]

Yeah, then why didn’t he just ask for $200 million, why $700 million, even if it’s deferred. Money was definitely a factor. He does care about money. He will eat with $200 million. And the dodgers in 2033-2043 are going to be paying him $68 million a year. Those dodger years are going to be slim Pickens. I love that he did that but just sayin…

[@valley_walker8288]

​@@Harcorwrestler But in 10 years, the real value of $68 million(x 10 yrs) will be significantly reduced due to the economic inflation. And Ohtani does not receive interests for the period he is going to wait for the reduced money.

[@seymoresmithh8908]

@@Harcorwrestler- the players union will not allow Ohtani to take far less than his market value because it will effect the contract of other players. Ohtani may not care, but his agent sure does.

[@ec8107]

Lol, he loves the money. He's an international star. He makes ridiculous money outside of baseball. His baseball contract is just his pension fund.

[@wilburwood8261]

@@Harcorwrestler Getting as much money was important to him. Not because he wants it, but because it signifies his value as the top athlete in the world, and, pave way for others coming up in the baseball world. If he asked like 200 Mil, that is very bad for baseball. I am really surprised you cant see this, you must be a high school student, but you will know better when you become an adult.

[@bobhookstratten9567]

Hideo Nomo revolutionized free agency in Japan. Ohtani's gonna revolutionize MLB contracts.

[@johnl.7754]

Most American/latin born players probably want instant gratification

[@BuckFieri]

Not all revolutions make things better

[@350z33hr]

He's a unicorn

[@paullo8268]

Just like Elon, Ohtani has his own masterplan in his latest Disney documentary. No surprise for the deferral decision. The masterplan is winning WSC, WSC MVP, Cy Young, having a good family, owning his own team.

[@rollwithdynamite]

ohtani is giving his team the best opportunity to win while hes on their roster. the man wants to win.

[@surfwriter8461]

If it's legal, as it is, and if other players have deferred money before--though nothing to this extent--then just thank Ohtani for his generosity. How many players would agree to give up 97% of their salary for at least 10 years? Sure, he has endorsement money coming in, but the key is that money doesn't matter to him compared with winning and being the best in the game. Reserve his room at the Hall of Fame. How can a mere plaque on the wall, crowded by many other plaques, convey what Ohtani has done and has meant to the sport?

[@soapqueen2008]

There is no limit on deferrals years or money wise

[@surfwriter8461]

@@soapqueen2008 I thought his agent told him he couldn't defer all the money because that's not "legal" under the MLB/players agreement, so they came up with the 97% figure.

[@SuperCatacata]

@@surfwriter8461 Yeah, people freaking out like this breaks baseball for the future are ignoring the fact that this will NEVER be done again. Nobody in their right mind is deferring that much money for a whole decade.

[@jljljljljljljljljljljljljljljl]

Ohtani earns more than $40-million every year just from endorsements so Ohtani is not exactly living in a cardboard box eating just tea and rice every day lol. He clearly wants to win multiple World Series with the Dodgers so he wants to help his new team have the HUGE financial muscle and flexibility to both retain current star players and attract new players. All other team sports organizations should learn from Ohtani - it is not just about you and your big ego demanding to be paid the most, but it is really more about how many other star players your team can retain and attract!

[@DW-op7ly]

He gives all his money to his mother anyways And then she gives him 2000 a month

[@lopakker4362]

He is eating rice with natto everyday

[@jljljljljljljljljljljljljljljl]

@@lopakker4362 lol my "living in a cardboard box eating just tea and rice every day" was a J-O-K-E. And Shohei eats at least 60 grams of protein PER MEAL, including chicken, fish, grilled meats, and sushi... not just natto. His ultra-high-protein diet means that Shohei may eat more protein in one single meal than the total protein consumption that many people eat for an entire day. Natto and rice are *NOT* the only things that he eats everyday. And he is certainly not just eating tea and rice while living in a cardboard box lol

[@jaidenBenzz]

What a lovely contract, whoever gets Yoshinobu Yamamoto will definitely get a ring. After watching his film he’s elite!

[@armuk]

sasaki > yamamoto

[@Wetwilly87]

People need to realize that he’s not just living off the 2 million a year from the dodgers, he also has his endorsement deals (which will increase now that he is a Dodger) he also probably saved his money from the 6 years playing for the Angels. He lives a simple life away from Baseball, he’s not a big spender.

[@mattj5492]

the dude is going to have more money than he knows what to do with so it's a no brainer. The Dodgers are perennially strong, if they can get even stronger players because they're not paying him right now then he's going to have even better chances of winning the World Series over the coming years. Brilliant.

[@jetBlueDawg]

Bam!!!🎯

[@Joe-nd5dm]

Shohei suggested that option to all the teams he talked to... the angles were there.

[@meatusshaft300]

And in 2035, when Bobby gets his last check, Sho will be just starting his MEGA Payments! 😂 💰

[@Harcorwrestler]

And those dodger years from 2033-2043 will not look pretty. Those dodger players in those will be looking at Ohtani like 🤬

[@RJeezy_400]

@@Harcorwrestlerthey aren’t worried about 2033.. they thinking about the best 10 year span of any franchise. If he’s the real deal, everyone else is in for some trouble.

[@onionbreath002]

It's great. Once we have to stop celebrating Bobby Bonilla day, we get to start celebrating Shohei Ohtani day!

[@wilburwood8261]

@@Harcorwrestler no need to worry. Some or all of the payments will be converted to shares, amortized further down the road, so it would be a burden to the franchise, Ohtani will not let a bad thing happen.

[@Harcorwrestler]

@@wilburwood8261 very true. That may very well happen. Ohtani is a smart man

[@TheGreatKrystoff]

Another classic background scene for the Rich Eisen show set. Standing lunch on the quad

[@Fakeaorta]

Still like the guy secretly texting in the corner till Rich shooed him away!

[@deliveryu3871]

Had to be tacos 🌮

[@reynaldomacahilas3072]

Dodgers have to be the luckiest team on earth to have a player to agree to a contract structure such as this what's more amazing and is its his idea to help guarantee to get more players to help win a world series this was mind blowing

[@reynaldomacahilas3072]

What a blessing this man is such a special human being I'm sure his parents are the proudest ppl on the planet to have sucha special son

[@mardy341]

But a lot of us won't be able to afford to attend a dodgers game due to the sky rising prices in tickets,unfortunately,so not soo lucky.

[@XxBNxX18]

Which is why more people hate the dodgers!

[@reynaldomacahilas3072]

@@XxBNxX18 why? It's not are fault he wants to play for us LA there's many other teams in the league but he wants to be a Dodger

[@soapqueen2008]

He asked for it to be structured this way

[@nicoalexander774]

Like that one tweet goes, The Dodgers have invented the new version of the, Sports Credit Card! 💳 And as a Giants fan, I hate it so much! 😭😞

[@onespeedlite]

Speaking of credit card, the Dodgers are getting "cash back" on the purchase because of sponsorship deals they will be making off Ohtani. How about $40M, $50M, $60M per year? It could be enough to pay for Ohtani's salary.

[@ByGriPhone]

Dodgers are gonna put out a hit on Ohtani right after he retires 🤣

[@kylegustafson6088]

And just like a credit card one day you'll have to pay that back. Just kicking the can down the road

[@JL-rd5gn]

Don't hate the contract because it's beautiful ⚾

[@shojun11]

@@ByGriPhone Just make ohtani a part owner after 10 years so they can still spend for players.

[@yanchand3603]

DODGERS SOOOOO LUCKY TO HAVE OHTANI 😊

[@user-wl1nv5xq3j]

I think it's smart of Shohei saving for his retirement. 😂

[@JamesEvans2023]

Instead of investing tens of millions every year he'd basically double it or more by the time he's at 10 years. Now he'll have a whopping 20 million after 10 and he can start investing then. The dodgers aren't building interest on that. And guess what, Ohtani will still have to pay California taxes on all deferred payments, because the organization is located there and that's where the income was earned.

[@justaguy328]

How is it smart? You can invest that money today. That money in his contract will be worth less in 10-20 years just sitting in the Dodgers bank account.

[@JamesEvans2023]

@@justaguy328 it’s not really sitting anywhere if you think about it.

[@mmabreakdown7893]

@@JamesEvans2023 He won't. If he moves to a tax free state like Florida, which a lot of superstar athletes do, he wont have to pay a cent to California.

[@gunrightsmafia9867]

​@@rstekcy7967bro he gets 50 million in endorsements he good and it was smart he is not a luxury guy he is simple so 2 million plus 48 million in endorsements will have him living good trust!!

[@bizzz.R]

Hold my Asahi 😂

[@streetkredtinople1678]

Small markets clubs need to band up boycott if need to close this loophole. How can small market clubs compete?

[@shoeless1137]

they can't thats the point. Baseball is turning to the NBA under Stearns, the small market teams dont matter to Manfred, they arent real teams and their fans arent real people. This will kill the sport

[@youngtripp5184]

It’s over they’ll never be able to compete after this deal it’s over the players know what to do now now that Shohei has done it

[@jaywilliams8608]

This loophole needs to be illegal

[@AlexRFitness]

2:00 Shoutout to buddy in the back rolling and sparking a doob 😂

[@jasonclark7990]

mr Eisen all i can say from canada is Thank you for being you. your show and crew are absolutely and EASILY the best out there so just keep being you and keeping and doing your show the way it is and the success will continue to follow you all. love it and keep it coming baby!!!

[@RorinoTheGreat]

I've never understood why more players don't do this, specifically star players. Tom Brady took pay cuts for years, leading to him winning so much that he's the most recognizable athlete in the country. He can get any brand in the country to put him in a commercial. He got to win more, and now he has enough money to do whatever he wants.

[@DominicDyer-sb3pw]

Being athlete is a job, most of them need paycheck for life with few to no endorsement money. Baseball player arent popular either. Only ohtani who can do this with all his off-field income. And no one crazy enough as him to smth to this.

[@RorinoTheGreat]

@@DominicDyer-sb3pw I agree, I should have said specifically star athletes, and specifically star QBs or guys like Aaron Judge or Patrick Mahomes. Obviously if I were a defensive lineman or something I’m taking every penny I can get

[@funnytoss]

@@RorinoTheGreat to be fair, even stars have to be worried about a career-ending injury that could happen at any time

[@DominicDyer-sb3pw]

@@RorinoTheGreat because money today is worth more than money in the future. Theres no reason for them to do defferal if not for unselfish-reason. And not everyone want to do that. Career ending injury, some kinda pandemic sht, inflation and their collecting cars and houses couldnt wait till 10+years from now. Ohtani did it because he doesnt really care about money. The first time he came from Japan, he purposedly lose $200M+ signing and paid $500k with his rookie contract. Thankfully he's advertisement star since he's in Japan so he could do smth crazy like this.

[@RorinoTheGreat]

@@DominicDyer-sb3pw Fair points, you’re probably right. I’ll take a last stand on my argument for fun though. I think at the very least if you’re a QB in the elite caliber, meaning Josh Allen, Mahomes, etc., it would be beneficial to at least take a pay-cut of like 20%. Yes, the economy could crash or something could happen of course, but you’re still making millions of dollars and if the economy went that south then everybody would be screwed anyway

[@leafan101]

Interestingly, if you compare this contract to other sports contracts and reduce it by the inflation rate over 10 years, it is really a 600 million dollar contract in today's money. If you discount it by the interest rate it is more like a $500 million contract. So this deferment helped the dodgers increase the offer amount as well.

[@ricardorincon2083]

97.1% of this contract was deferred that’s insane loo

[@soul2squeezy439]

Dodgers front office cooking

[@Theiliteritesbian]

He is the second athlete i can think of who just wants to win. As a packers fan i cringed every time Rodgers said he just wanted to win, while tanking our opportunity by taking 40% of payroll. Brady is the other i can think of, and he's not worried about his next meal either.

[@jevanclarke1]

So Ohtani’s two types of dodger; Los Angeles Dodger and Tax Dodger.

[@satoshiwatanabe2840]

In fact, it's very simple. Ohtani wants to concentrate on baseball, not bothering about mind-boggerling money. Money management needs huge energy, which he prefers to take care of after his career is over. 2 million dollars and the endorsements are more than enough for him to live in LA.

[@breadbaskets2772]

The idea that more than half of a contract can be differed is completely stupid

[@camreese]

California needs to lower their taxes

[@brandoncarter439]

Ohtani just showed he is the GOAT, that a lot of people of people said he is!

[@Bluboy30]

Sorry Rich, I couldn't focus on what you're saying, the three gentlemen behind you are having what looks like an awesome meal. Lol!

[@krystalissoojung5114]

now I can't unsee it 😂😂😂

[@rsuriyop]

That’s so weird now that you made me notice that. Where is this guy’s office even located? Some kind of mall? Lol

[@Catdaddyacab]

Cats really do love Churu. It’s not only a treat but an appetite stimulant :)

[@Ahjile]

Anyone else watching the nice outdoor lunch apparently being had by the groundskeepers outside Rich's studio?

[@disturbownzall]

Dudes in the back eating at the dining table during the whole video were cracking me up

[@greatestsportslegends]

How is this loophole not exploited more often?! And how does this loophole even exist at ALL?!?! Well, MLB won't rescind this or even consider slapping the Dodgers on the wrist... the MLB WANTS Ohtani in LA. Period. And yes, Ohtani doesn't need onfield pay... he makes a bazillion dollars off it. The man is a GLOBAL brand, whether Americans want to agree or not.

[@jasonthemagnificent2.0]

I mean, he's already making so much money with endorsements he's like, who cares

[@juanabrams25]

It’s not neither federal or state tax free. He has to file a non-resident return and still pay tax for both. Income in CA and the US is still subject to tax even in the earner doesn’t live in the US

[@EverydayImTECHnIt]

This is genius on his part the tax implications he gave them a 100% legal okey-doke freaking brilliant

[@ec8107]

Another example of an advantage only a handful of large market teams have. His name brings in a lot more non baseball revenue in LA than it would in KC.

[@Bulligity]

The Dodgers are building a super team the likes of which has never been seen in baseball, maybe any pro sport ever. They're already in talks to get Yamamoto, Glasnow, Hader, and some are even speculating Arozarena will go to the Dodgers. Dark days ahead for us Giants fans.

[@aupotter2584]

He never aims for money but winning baseball only, just knowing that he spends only U$138 a month and gives all the remaining money to his Mom. 😅

[@TheRealMafoo]

Wow, such a missed opportunity. "hold my beer"... Shohei lived in Sapporo, and Sapporo is a prety good beer :)

[@I_Sleep_In]

Heres the breakdown guys. Its $700M in 2034 money. The cap hit will be $46M a year for 10 years because $460M in todays money is equal to $700M in 2034. Thats it. This is a 10 year $460M contract.

[@JohnM-sw4sc]

How do we know the value of money in 2034 ?

[@justaguy328]

Yeah that's not the way it works. You're talking about buying power, but the contract will be paid in actual dollars, so it's 700 million no matter the time period

[@I_Sleep_In]

@justaguy328 That's the deferred part. They'll actually be paying him $700M eventually in 10 years. But MLB is calculating the cap hit at today's equivalent dollar amount.

[@drewdogg77]

I think the real lesson here is that when you're rich, you don't need to pay taxes. That's how big league works! 🤔

[@chriskelly6559]

Gotta read the fine print.

[@NightcoreNewbie]

This could break mlb contracts altogether. It's like giving promissory notes to any player you want as long as you have the capital in the future. I'm curious if the mlb will put a limit on how many players can be deferred at the same time.

[@jacknguyen5677]

Until the next collective bargain agreement. 2/3 owners has to agree.

[@bourbontrail565]

Will this ever happen in the NFL ?

[@itseveryday8600]

He doesnt care for money all that much, his salary at angels was only like 200k for couple of years.

[@Harcorwrestler]

You’re acting like he isn’t getting money somewhere else. If Ohtani wasn’t getting any endorsement money and just making $200,000k for a couple of years, then your comment makes sense. But he’s easily been getting $20 million in his bank account from other sources. Think about it! Obviously he’s smart. He knows he’s getting paid somewhere else where he can afford to just be paid 200k by the team.

[@yawnn12]

Everyone: But what about inflation? Shohei: Inflation?

[@jobunaga4178]

this was done for income tax purposes. by structuring his compensation this way, ohtani will effectively side step california's 13.3% income tax so long as he's not in california when he starts getting his deferred payments. that's a solid $90M savings if he "retires" in texas or florida or washington.

[@joka5345]

What if tax laws change in 10 years?

[@electricpaper269]

I thought that the luxury tax is calculated based on the net present value of the deal.

[@zig8100]

Wonder if the Feds can get him for Tax Evasion

[@scotttild]

Just needs to be a limit on deferred money and these contracts. The gap is just getting bigger and bigger between small and large market teams. The entire economic system of baseball needs to change or it will just die. Other teams fans will just lose interest.

[@khumphrey86]

Is it legal for the player to bring in an investment bank/investor and discount the amount owed from the Dodgers? In other words, what is the Present Value of 680MM and can the player do this?

[@Mike__B]

I'm curious how you can use this to avoid taxes. Lets ignore the silly MLB deferment rules, it seems suspect to say "well I'm not getting this money until after I leave" surely having a signed contract for a job over a set period of time for a certain amount doesn't allow you just tell your boss "yo, hold that last check for a few months while I move to another state". If I'm a contractor, and living in tax free Florida but I have a job building a house in California I'll be taxed on what I make for that whole job California even if the last 50% of my check doesn't get paid until I leave the state.

[@mph7282]

You have to defer for a minimum of 10 years. A few months? No, it doesn’t work.

[@Mike__B]

@@mph7282 whatever the length of time, it's irrelevant. He's paid to do a job in the state of California, in the United States of America. As such should be taxed for that.

[@mph7282]

@@Mike__B length of time is entirely relevant. The law is that deferment for 10 years means it’s subject to your residency when it’s received. This is not unique to Ohtani. Lots of high-income individuals, such as CEOs, defer salary for this very reason.

[@tjbaden]

The Dodgers ownership is hoping for several World Series rings over the next 10 years, and when it comes time to pay Ohtani, they'll sell the team and the next ownership group will hopefully NOT turn their payroll into the A's. My gut feeling is this contract might push owners to finally create a salary cap for MLB so that this won't happen again.

[@jmorris023]

Was Ohtani's translator in the bathroom when they went over the structure of this deal? That's unbelievable, the NPV of that cash is about 2/3's of today's dollars.

[@mph7282]

He would have only received 2/3rds of this deal had he not deferred. They weren’t offering $70 million/yr without the deferral.

[@emeraldbreeze5204]

He simply avoided having his contract put pressure on the Dodgers' business. For what? Everything is for the team to win.

[@renewd]

Obtain is said to make 45 million per year in endorsements.

[@wrestlerecap1324]

That's so smart on Ohtani's part...as long as it's guaranteed

[@coo837]

Now there is so much pressure for Dodgers to prove him that Dodgers can win the World Series after him giving up so much and trusting them so much.

[@user-mc6uf2tb6b]

Ohtani is not interested in fashion, eats only a large serving of rice, boiled eggs, broccoli, pasta with only salt. His teammates worried that he's not enjoying his life when WBC.

[@generaldiscernment]

I hate to ask this question, because it is dark af: what happens if he dies at any point during or before these payouts? If before, does that mean the Dodgers don't have to pay that $680 million? He doesn't have a wife or kids, so how does that work? This all makes me so uncomfortable, that I even thought that question makes me uncomfortable.

[@blinksstayfresh2524]

Exactly this. Crazy situation

[@Zoe-vf8bo]

God forbid something happens to him, his family will get the money. Regardless of what happens, the Dodgers have to pay up the money. He's guaranteed that $680M as it's an ironclad contract. That’s been confirmed. His family will inherit his assets. Essentially, he has set up himself and his family for life.

[@D-V-C-N]

This exact scenario is clearly defined in the contract and would depend on the terms of the agreement. Scenarios like that are exactly why in the nfl you commonly hear the term “guaranteed money” thrown around and why players value it often times above the actual gross amount of the contract. Injury, death, disaster or any scenario you can imagine they are still guaranteed their money. If he’s dead then his estate would still be owed the money. Any person if his status has an estate usually a living trust that will handle their finances in th event of death.

[@sim0n17]

hold my Sapparo is what you meant -- let loose the lawyers from smaller market clubs!! dodging the luxury tax MUST be an issue

[@Mitchquiton]

Shohei Ohtani has been in LA for like six years… and it’s like he’s just barely getting here.

[@rayl3103]

Shohei opened a retirement account.

[@MalcIgg]

So does the deffered amount get adjusted for inflation at all? or is it now fixed - and also loss of interest etc? -- seems incedibly team friendly till it kicks in for the 2nd 10 years -- but hten the luxary tax limit will be 10 years worth of growth etc....

[@thekingofpingas]

No. The Deffered amount is Interest Free which feels insane for Ohtani to accept. I’ve seen that the actual value of the contract is only gonna be 10yr/460 Million when taking into account value lost due to inflation.

[@JamesEvans2023]

@@thekingofpingas and potential earnings lost from investment of more upfront money.

[@mph7282]

@@thekingofpingas10/460 was all he was gonna get anyway. The $700 million is only because he deferred. The interest is essentially built into the contract value.

[@newyorknewyork933]

No, so Shohei chose to lose hundreds of million time value of his money, for winning more championships.

[@mph7282]

@@newyorknewyork933 More? Than he already has? And his army of accountants and financial experts should have consulted you. You could explain your epiphany about this whole time-value of money thing to them. It’s groundbreaking stuff. A real game changer in the investment world.

[@gunrightsmafia9867]

Everybody saying that he did a bad deal just remember he gets 40 something million a year in endorsements so be is still making major money and dodgers will get that back in ticket sales and marketing around him!!

[@dannyd8918]

Shohei knows what he’s worth, but he also knows a team win games, not just one player. He does this so dodger can spends money they need on players who can help him wins and happy team mates who are paid well are better than underpaid, unhappy teammates. What a Team Player Shohei Ohtani is!

[@historiaefilosofiaparaoens4800]

Love the "Tennesse has no taxes" ... Yes.. Go live there, Just try it

[@larryd9549]

My cats LOVE Churu! My wife refers to it as cat crack.

[@nickrile]

Wild, it was north of 97% deferral

[@RandomCarrot2806]

I wonder how long it's going to take before we start seeing articles and videos tracking how much of the deferred investment has already been earned back for the dodgers just from ticket sales and merchandise, and maybe advertising if people can get their hands on that information reliably. I wonder if we are even going to get 5 years into his contract before it has already paid itself back in full for the dodgers.

[@johnnier.o.d4746]

shotime wants to play to a winning team ..... & he knows,$2 mil is enough to spend any sushi restaurant,any ramen places & it's more than enough to pay for a couple of trips at yoshinoya a couple times a week .... 😂🤣😂🤣😂-🤪🤪🤪🤪🤪🤪

[@stephenlukcasy9047]

Genuis

[@chrisphillips348]

That’s a “Red Wing Loophole” if I ever heard one! The Wings are the team that circumvented the NHL cap with front loaded deals, everyone else followed Wings players are also Known for taking payouts to Win!

[@acn.4632]

Ohtani just want to win,that's all he never changed his dream〜

[@dre32pitt]

Affirm for Sports Franchises

[@natsuaya2859]

i dont understand how this work but i hope that if for any reason he needed the money before the 10 years end that he'll be able to get it

[@MojoJM]

This could ruin baseball. I don't like it.

[@Alex-ss4bk]

Best part, only a "small" amount will go to CA

[@gavinsloane6282]

Bob Bonilla approves of this deal😂

[@user-lo3dl1ew7o]

One very simple word. TAXES. it’s super super smart. Pay on 2mil and get the rest after you move out of state where there is no INCOME TAX.

[@BigBlack81]

This could potentially make the Bobby Bonilla deal look like small change.

[@lesweizman388]

only if ohtani is a bust

[@azmoe99]

It shows only 1 thing.......He really DOES want to win. I wasn't sure until now. Take the rest this year and buy me some teammates AND keep luxury tax money away from other teams.

[@EricTheMadviking]

So the luxury tax hit after he retires is 68M per for 10 years? 😅

[@newyorknewyork933]

Seems like this, and the Dodgers basically pay 68Mil each year for a player not in team. They sacrificed the future 10 years for the current 10 years, this is a courageous move, but I could understand it, because you may not find another Shohei Ohtani. They want to build a dynasty like the old Boston Celtics with 8 championships in 10 years.

[@lesweizman388]

@@newyorknewyork933 the baseball gods will continue to punish them they will continue winning the west but will not win the ws

[@linhe3919]

The greatest Sho 🎉