Ohtani gets 700M

[Deepster]

Pujols got the money when we was a player.

Deferred contracts are everywhere. The 3rd highest paid player on the Reds this year was Ken Griffey Jr.

 

[HuskyHawk]

if you have a choice of taking money now, or taking it in 10 years, the correct answer is always now. That kind of money invested, compounded over 10 years is an incredible amount to leave on the table.

He didn’t have that choice. Thats the fallacy here. Nobody was paying him that much in current dollars. He gets 50+m in endorsement money now. He will be fine. This sets his family up for generations.

 

[mauconnfan]

The Dodgers will make money off the contract winning or not. He’s an icon there’s no denying that. He’s a real good pitcher, not great. Doesn’t eat innings but steady 3.00 era is always welcome these days provided he can do that after the 2nd surgery. Hitting wise, looks like his best season just happened at 28. HRs RBI and BA, OBP all his highest. The question is, is he on the rise or just that solid .280/40/90 guy? Hideki Matsui had very similar numbers early in with the Yanks minus the HRs as an FYI.

I mean he’s a really good player and there’s no doubting that. The fact he can do both sets him apart no doubt. But he’s not a HOFer in either hitting (maybe because of HRs) or pitching. 700M? Nope

 

[Travelman6]

That's it, the last proof I need, we all live in a simulation controlled by an advanced alien race and each of us is controlled by someone in that advanced race and the alien controlling Ohtani just has access to all sorts of cheat codes. Has to be it.

 

[Mots010]

He didn’t have that choice. Thats the fallacy here. Nobody was paying him that much in current dollars. He gets 50+m in endorsement money now. He will be fine. This sets his family up for generations.

i had to read about this contract more. The way I understand it, it’s somehwat akin to earning interest on a 10 year/460 million dollar contract….hence the 700 million value in 10 years. Fascinating stuff.

 

[billythekid]

So how do they value the contract against the luxury tax? Is it $2M/year? $70M/year? $46M/year? I'm guessing it's the latter, which is still a hit to the tax, but not early as awful as $70M.

 

[navery12]

So how do they value the contract against the luxury tax? Is it $2M/year? $70M/year? $46M/year? I'm guessing it's the latter, which is still a hit to the tax, but not early as awful as $70M.

$46M on the luxury tax for the next 10 years since that's the present value of the contract

 

[bfs3]

i had to read about this contract more. The way I understand it, it’s somehwat akin to earning interest on a 10 year/460 million dollar contract….hence the 700 million value in 10 years. Fascinating stuff.

So how do they value the contract against the luxury tax? Is it $2M/year? $70M/year? $46M/year? I'm guessing it's the latter, which is still a hit to the tax, but not early as awful as $70M.

So is it 46 per year or is it just 46? Even if it’s per year that sounds pretty reasonable for 40/100 guy who should pitch around 100 innings a game. If the rest is pretty much interest then it’s not the same as what people initially were shocked by. Seems like it’s about as good a deal as these mega deals can be for a team. Especially considering he adds a tremendous amount of long term marketing value to go with the immediate endorsement dollars. Do the dodgers have their own channel like YES?

 

[Chin Diesel]

 

[FfldCntyFan]

So is it 46 per year or is it just 46? Even if it’s per year that sounds pretty reasonable for 40/100 guy who should pitch around 100 innings a game. If the rest is pretty much interest then it’s not the same as what people initially were shocked by. Seems like it’s about as good a deal as these mega deals can be for a team. Especially considering he adds a tremendous amount of long term marketing value to go with the immediate endorsement dollars. Do the dodgers have their own channel like YES?

At the moment the average annual present value of the contract is $46mm per year. I imagine that this will adjust during the term of the contract as a drop in interest rates (prime rate is higher than it's been in many years and could start moving lower during the ten years of the contract) would increase NPV.

 

[WestCoastHusky]

The Dodgers will make money off the contract winning or not. He’s an icon there’s no denying that. He’s a real good pitcher, not great. Doesn’t eat innings but steady 3.00 era is always welcome these days provided he can do that after the 2nd surgery. Hitting wise, looks like his best season just happened at 28. HRs RBI and BA, OBP all his highest. The question is, is he on the rise or just that solid .280/40/90 guy? Hideki Matsui had very similar numbers early in with the Yanks minus the HRs as an FYI.

I mean he’s a really good player and there’s no doubting that. The fact he can do both sets him apart no doubt. But he’s not a HOFer in either hitting (maybe because of HRs) or pitching. 700M? Nope

It is clear as day you haven't watched him play at all

Just glad MLB teams got real analysts. Dodgers weren't the only team that offered him the same contract. Based on your analysis, these MLB GMs must be insane to pay for just a "good" player who just had his second TJ this much money.

I just don't know whether to laugh or cry

 

[mauconnfan]

It is clear as day you haven't watched him play at all

Just glad MLB teams got real analysts. Dodgers weren't the only team that offered him the same contract. Based on your analysis, these MLB GMs must be insane to pay for just a "good" player who just had his second TJ this much money.

I just don't know whether to laugh or cry

Oh I’ve seen him play. He’s a really good player. There’s lots of guys batting .270 for their career, they just don’t pitch like he does. He’s great at HR hitter there’s no doubting that and those should go up in LA at that field. 50 will more than likely happen. He’s struck out 30% of his ABs as an FYI.

Laugh or cry I could care less how you feel. If he pitches again and well like he has he will be a shoe in HOFer based on doing both. And due to his HR appeal as long as he continues that will help boost his entrance if he blows his arm out again. Last year he put it all together batted .300 plus let’s see more of that rather than .260.

 

[bfs3]

Oh I’ve seen him play. He’s a really good player. There’s lots of guys batting .270 for their career, they just don’t pitch like he does. He’s great at HR hitter there’s no doubting that and those should go up in LA at that field. 50 will more than likely happen. He’s struck out 30% of his ABs as an FYI.

Laugh or cry I could care less how you feel. If he pitches again and well like he has he will be a shoe in HOFer based on doing both. And due to his HR appeal as long as he continues that will help boost his entrance if he blows his arm out again. Last year he put it all together batted .300 plus let’s see more of that rather than .260

He has between a 5-7 WAR for complete seasons and he’s had to adjust to MLB pitching/life. The injuries are a concern and they’re primarily related to pitching. Multiple star pitchers have had more than one TJ surgery and came back as all stars. If he only hits and he can stay healthy he can be a great hitter into his late 30s like many other players have been. I’m more worried about Judge staying healthy than Ohtani. I read a few years ago that the going rate in free agency was 8-10 million a year for each WAR. That was prior to many of these most recent deals for a typical player or all star. At 46 a year for 5-7 WAR it’s pretty standard.

5-7 WAR for a DH is not common. Regardless of his batting average. He’s also improved each year and the prime for most hitters is 28-34. I wouldn’t be suprised if he continues to improve but if he hits .270 40+ hrs and 100 RBIs a year only, he’s still worth 46 million a year in today’s market. That’s ignoring his extra marketing value and pitching.

 

[bfs3]

At the moment the average annual present value of the contract is $46mm per year. I imagine that this will adjust during the term of the contract as a drop in interest rates (prime rate is higher than it's been in many years and could start moving lower during the ten years of the contract) would increase NPV.

Thanks. I had to read a couple articles to get a clearer answer.

 

[mauconnfan]

He has between a 5-7 WAR for complete seasons and he’s had to adjust to MLB pitching/life. The injuries are a concern and they’re primarily related to pitching. Multiple star pitchers have had more than one TJ surgery and came back as all stars. If he only hits and he can stay healthy he can be a great hitter into his late 30s like many other players have been. I’m more worried about Judge staying healthy than Ohtani. I read a few years ago that the going rate in free agency was 8-10 million a year for each WAR. That was prior to many of these most recent deals for a typical player or all star. At 46 a year for 5-7 WAR it’s pretty standard.

5-7 WAR for a DH is not common. Regardless of his batting average. He’s also improved each year and the prime for most hitters is 28-34. I wouldn’t be suprised if he continues to improve but if he hits .270 40+ hrs and 100 RBIs a year only, he’s still worth 46 million a year in today’s market. That’s ignoring his extra marketing value and pitching.

That’s a fair assessment. Only in today’s and I like the guy. But people try to say he’s maybe the greatest of all time. Hardly in the conversation!

 

[Deepster]

Listened to a really good podcast on a walk today, will try to link it, about the contract. Allow me some leeway on the details, but....

a) Of the 700m, the Angels will have to actually account for 440m and the interest will carry that to 700m.
b) They don't have to defer any money for 26 months. So they don't have to reach into their own wallet until July 2026.
c) Between now and July 2026, they think the Dodgers can recover ALL of what they need to cover that 440m nut with the TV and merchandising deals.

In essence, they're on a 2 year marketing junket where experts feel they'll start July 2026 at a net-net 0 balance and (assuming nothing is renegotiated or changes) any additional actions they can make to profit off his likeness will go in their pockets for the rest of the contract. And the deferred deal, as mentioned, helps Ohtani escape all CA taxes.

I'm no expert, but as a Mets fan with a 20b hedge fund billionaire as our owner, how did they get hornswoggled into what looks like a FREE Ohtani basically?

 

[WestCoastHusky]

Listened to a really good podcast on a walk today, will try to link it, about the contract. Allow me some leeway on the details, but....

a) Of the 700m, the Angels will have to actually account for 440m and the interest will carry that to 700m.
b) They don't have to defer any money for 26 months. So they don't have to reach into their own wallet until July 2026.
c) Between now and July 2026, they think the Dodgers can recover ALL of what they need to cover that 440m nut with the TV and merchandising deals.

In essence, they're on a 2 year marketing junket where experts feel they'll start July 2026 at a net-net 0 balance and (assuming nothing is renegotiated or changes) any additional actions they can make to profit off his likeness will go in their pockets for the rest of the contract. And the deferred deal, as mentioned, helps Ohtani escape all CA taxes.

I'm no expert, but as a Mets fan with a 20b hedge fund billionaire as our owner, how did they get hornswoggled into what looks like a FREE Ohtani basically?

Ohtani wanted to win, and this is his way of helping the Dodgers win while also being in one of the biggest media markets in the USA. Ohtani made $40M in endorsement money in 2022, and the next MLB player is Trout at $5M. He will make $50M to $100M in endorsement money alone being Dodger which is why he can defer everything.

Ohtani jersey sale just broke records as it sold more than any pro athlete's jersey in history just now.

Opening day standing only at Dodger stadium was normally $85. This year it went to $500 due to the Ohtani.

Ohtani brand is real, and it might reach Michael Jordan status in the coming years if he keeps going.

SF Giants offered him the same deal but he went with the Dodgers. I would have done the same if I were him just to get some protection playing with Betts and Freeman. He never really had batting protection with the Angels with Trout due to the fact Trout was always hurt when though they played years together.

If you look at the bigger picture, yes Dodgers are getting Ohtani basically for free with all the additional revenue just being associated with Ohtani.

 

[WestCoastHusky]

That’s a fair assessment. Only in today’s and I like the guy. But people try to say he’s maybe the greatest of all time. Hardly in the conversation!

You must be a hater .

There isn't any doubt Ohtani is the greatest baseball player and talent in the history of baseball. There is no equal, and no one is even close. Not Babe Ruth, not anyone.

MLB players appreciate his talent as well as anyone who understands baseball. There will always be haters, but they are not looking at this objectively.

 

[mauconnfan]

You must be a hater .

There isn't any doubt Ohtani is the greatest baseball player and talent in the history of baseball. There is no equal, and no one is even close. Not Babe Ruth, not anyone.

MLB players appreciate his talent as well as anyone who understands baseball. There will always be haters, but they are not looking at this objectively.

I’m not a hater I’m just not foolish enough to fall into the medias love fest. It’s an absolute joke to think he’s the greatest of all time. Almost hilarious!

 

[WestCoastHusky]

I’m not a hater I’m just not foolish enough to fall into the medias love fest. It’s an absolute joke to think he’s the greatest of all time. Almost hilarious!

What's hilarious is you actually think otherwise. You might want to set an appointment with your eye doctor to get your vision checked.

Literally read the title of this article:

www.thebiglead.com/posts/shohei-ohtani-is-the-greatest-baseball-player-of-all-time-01h407b5gzdj

There are literally multiple people who are in the baseball business who feel this way, and plenty of articles by professional baseball writers who have written on this topic.

If you are lazy, watch this video for a quick summary:



We might not see another one like Ohtani for another 100 years or more. Now that he is finally with the Dodgers with a real lineup, he will all suddenly look that much better just by the fact he will have much better players surrounding him.

Ohtani is on the way to be the Michael Jordan of baseball.

Anyway, you are welcome to have your opinion but plenty of people disagreeing with you.

 

[Scoe]

Best player you have seen on a baseball field vs best player ever are 2 different things. You do have to at least have to have some measure of success in the postseason.

 

[mauconnfan]

What's hilarious is you actually think otherwise. You might want to set an appointment with your eye doctor to get your vision checked.

Literally read the title of this article:

www.thebiglead.com/posts/shohei-ohtani-is-the-greatest-baseball-player-of-all-time-01h407b5gzdj

There are literally multiple people who are in the baseball business who feel this way, and plenty of articles by professional baseball writers who have written on this topic.

If you are lazy, watch this video for a quick summary:



We might not see another one like Ohtani for another 100 years or more. Now that he is finally with the Dodgers with a real lineup, he will all suddenly look that much better just by the fact he will have much better players surrounding him.

Ohtani is on the way to be the Michael Jordan of baseball.

Anyway, you are welcome to have your opinion but plenty of people disagreeing with you.

You obviously never played after little league. I don’t need to watch anything he’s 29 years old and he averages .270 and strikes out 30% of his ABs. Wow he’s phenomenal lol. Other than that you’re obviously an expert on baseball

 

[WestCoastHusky]

You obviously never played after little league. I don’t need to watch anything he’s 29 years old and he averages .270 and strikes out 30% of his ABs. Wow he’s phenomenal lol. Other than that you’re obviously an expert on baseball

What's hilarious is you still believe batting average is like the number one measurement on how good a hitter is when there are many other measurements saying otherwise. Talking about being completely clueless about modern day baseball.

You can attack my baseball credentials, but every GM from multiple teams must stupid as hell cause multiple games offered the guy $700M contract, and that's almost double the next biggest MLB contact. Those GMs, owners, team physicians, and pro scouts must be completely idiots, but they just happen to run professional baseball organisations. I am sure those guys never play past little leagues either .

 

[WestCoastHusky]

Best player you have seen on a baseball field vs best player ever are 2 different things. You do have to at least have to have some measure of success in the postseason.

I am sure you are aware this but one guy simple can't impact baseball the way one guy can in a sport like basketball. Ohtani can't overcome a bad MLB owner like Arte Moreno. He is literally one of the worst owners in baseball with it's horrible management of the team. I can go into it but it is not worth it here.

Now that he is playing for the Dodgers, we will find out what you stated.

 

[mauconnfan]

What's hilarious is you still believe batting average is like the number one measurement on how good a hitter is when there are many other measurements saying otherwise. Talking about being completely clueless about modern day baseball.

You can attack my baseball credentials, but every GM from multiple teams must stupid as hell cause multiple games offered the guy $700M contract, and that's almost double the next biggest MLB contact. Those GMs, owners, team physicians, and pro scouts must be completely idiots, but they just happen to run professional baseball organisations. I am sure those guys never play past little leagues either .

Contracts now tell you that he’s the greatest player ever, how much GMs are offering? lol now that is the definition of clueless. So when Juan Soto gets the next big contract that’s the GMs telling us he’s the 2nd best player ever? Lol you’re not worth my time keep listening to the media morons. He’s really a what looks to be a great baseball player but he will never be in the greatest baseball player ever conversation. I will revisit accordingly if he throws up numbers higher than this year in every facet for the next 5-7 years.