Ohtani's Staggering $700M Deal: More Than Meets the Eye

Move Over Bobby Bonilla, July 1st Is Now Shohei Ohtani Day

Let's talk big bucks with a twist! Shohei Ohtani's new contract with the Dodgers is a head-scratcher - it's like a magic trick with money. On paper, it's a $700 million, 10-year deal, but in reality, it's more like $700 million over 20 years. Why? Because Ohtani's only pocketing about $2 million each year while he's actually playing. The real payday comes later, with Ohtani set to cash in a whopping $68 million every July 1 starting in 2034 for a decade after he stops playing. Talk about a long-term plan!

Now, in the world of baseball finance, this deal's not just about the flashy numbers. There's this thing called 'discounted present value' in the CBA, which means Ohtani's deal is technically worth around $46 million a year over 10 years as it relates to the Luxury Tax. But why would Ohtani agree to this? It's all about flexibility and possibly some tax benefits, especially if he's chilling in Japan instead of Cali when the big checks start rolling in. Plus, this still sets a record for the average annual value of a contract.

What does this mean for the Dodgers? They can't just sit on this deferred money; they've got to start stashing cash for Ohtani by 2026 per league rules. And while they're juggling these future payments, they're also eyeing more talent to beef up their squad. This unique deal structure gives them some wiggle room under the luxury tax threshold, allowing them to potentially make some more big moves. So, it's not just Ohtani winning here; the Dodgers are playing a smart, long game too.

Trivia Question: Bobby Bonilla famously collects $1.19M every July 1st from the New York Mets due to a deferred contract that started paying in 2011 and will end in 2035. Bobby also collects $500k on July 1st due to a second but lesser talked about contract from which Major League Team?

Links Provided If You Want To Read More

• San Francisco Giants sign South Korean outfielder Jung Hoo Lee to a 6 year $113M deal - Bleacher Report

• Boston Red Sox are really going “Full Throttle” this offseason and trading for Tyler O’Neill from the St. Louis Cardinals for Pitchers Nick Robertson and Victor Santos - Fangraphs

• Austin Hedges signs a 1 year $4M deal with the Cleveland Guardians after the Guardians earlier that day traded Christian Bethancourt to the Miami Marlins for cash - Yardbarker

• New York Yankees send Trey Sweeney to the Dodgers in exchange for Victor Gonzalez and Jorbit Vivas - CBS

• The Royals are looking to win the World Series after signing Will Smith who has won a World Series with 3 different teams in each of the last 3 seasons - ESPN

• Seth Lugo signs with the Kansas City Royals for 3 years for $45M. Jokes aside, the Royals could be decent next year - SI

• Pittsburgh Pirates acquire Rowdy Tellez to 1 year $3.2M - Score

The Shohei Ohtani contract has major implications for the future of the Free Agent market in Baseball. A once-in-a-lifetime type of player has earned one of the more unique, and highest-valued sports contracts in history. Pour one out for the people you know who are saying Baseball is dead, it’s been a tough year for those folks. Here’s the furthest home run hit of 2023, 493 feet from none other than Shohei Ohtani.

🚨 Earn a Free Random Topps 2023 Parallel Card Potentially Valued up to $250 for Each Individual Referral This December

You currently have 0 referrals, only 1 away from receiving our exclusive Fantasy Baseball Rankings.

or Copy and paste this link: https://www.dailytater.co/subscribe?ref=PLACEHOLDER

Trivia Answer: The Baltimore Orioles pay Bobby Bonilla $500k every July 1st from 2004 through 2028.