PrestigeWorldwideAg12 said:

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I guess if the reality is I am only a 8/160 guy as a 30 year old but can turn that into an 8/220-8/240 by deferring a very large chunk and still make a couple million a year then hell yea I'm doing it.

Pay me enough to live a small life of luxury and let me retire big time then sign me up!

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But if you got paid now, you'd make that money with simple investments. What's the benefit? Unless the deferred amount >> what the market could reasonable make it only helps the ownership.

I know it's hard to imagine but 2 M a year before taxes isn't stupid FU money. If you buy a nice house, spend tons of training, and have a family to spoil that **** is rich, not wealthy.

Depends on the state I'm playing in and the tax benefits later on. Most teams spending that money have a large state income tax.

htxag09 said:

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Buck Compton said:

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Deferred monies are discounted at a 5% rate and then applied to the term of the contract to calculate an AAV.

No one predicted that someone would do it for 97% of a $700M contract. And no one else will ever do it again to this scale because they don't have the Ohtani endorsement fallback.

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Thanks, my biggest question has been wouldn't the deferred monies effect the luxury tax when paid and hadn't seen it answered before this.

Also, while I agree that nobody will do it to this scale, you can argue that other's have potential to still do similar contracts even if they don't have the endorsement fallback.....Take Verlander for example, he doesn't have the endorsements Ohtani has, but still probably has a couple mil in endorsements? Also, he has a career earnings of $300mm+ and a wife that makes a few mil a year. So the opportunity to do something similar during his free agency could definitely have been there.

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a few mill a year...fairly sure she makes more than him annually and career earnings are way in her favor

I thought so too, but quick google didn't support that and I didn't feel like diving into it much more than that lol

If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

Farmer1906 said:

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PrestigeWorldwideAg12 said:

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I guess if the reality is I am only a 8/160 guy as a 30 year old but can turn that into an 8/220-8/240 by deferring a very large chunk and still make a couple million a year then hell yea I'm doing it.

Pay me enough to live a small life of luxury and let me retire big time then sign me up!

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But if you got paid now, you'd make that money with simple investments. What's the benefit? Unless the deferred amount >> what the market could reasonable make it only helps the ownership.

I know it's hard to imagine but 2 M a year before taxes isn't stupid FU money. If you buy a nice house, spend tons of training, and have a family to spoil that **** is rich, not wealthy.

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Potentially. It's just as possible another great recession hits and you have nothing to show for it.

A lot of people are just fine with letting the organization worry about how to cover the guaranteed interest they are providing you while your only risk is the club / MLB failing. I'm not going to run the TVOM simulations, but one would imagine both sides had analysist run the models and see what the high, low, and most likely returns are both ways. And they differed most likely gets them a healthy portion of their expected returns for much less risk.

Adding in the possibility of covering 10%-15% more with residing in a non-income tax state when it hits and it's not a hard decision to make if you feel you can comfortably live how you want until the deferred payments start.

Lonestar_Ag09 said:

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htxag09 said:

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Buck Compton said:

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Deferred monies are discounted at a 5% rate and then applied to the term of the contract to calculate an AAV.

No one predicted that someone would do it for 97% of a $700M contract. And no one else will ever do it again to this scale because they don't have the Ohtani endorsement fallback.

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Thanks, my biggest question has been wouldn't the deferred monies effect the luxury tax when paid and hadn't seen it answered before this.

Also, while I agree that nobody will do it to this scale, you can argue that other's have potential to still do similar contracts even if they don't have the endorsement fallback.....Take Verlander for example, he doesn't have the endorsements Ohtani has, but still probably has a couple mil in endorsements? Also, he has a career earnings of $300mm+ and a wife that makes a few mil a year. So the opportunity to do something similar during his free agency could definitely have been there.

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a few mill a year...fairly sure she makes more than him annually and career earnings are way in her favor

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Kate Upton's net worth is listed as $25 million, so not even close between the two of them. Some Internet research says she can make $50,000 per photo shoot though.

Farmer1906 said:

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tjack16 said:

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If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

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If your two options were 10/250 & 20/250 you'd making a poor financial choice to take the second one.

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I was just saying I wouldn't do the take $2M per year now and max later… I'd want it to be more evenly spread out.

Farmer1906 said:

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tjack16 said:

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If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

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If your two options were 10/250 & 20/250 you'd making a poor financial choice to take the second one.

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That's not what we're discussing.

We're discussing the difference between 10/$500MM and 20/$700MM

In essence he's making a 40% return in 10 years for almost 0 risk instead of taking $500MM and investing it in an uncertain economic climate. Sure, he could potentially make a lot more. He could potentially lose it all.

At some point the question is are you cool with living on $40MM a year of salary and endorsement money for an essentially guaranteed additional $200MM return in 10 years when his playing days will be done.

AgLA06 said:

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Farmer1906 said:

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tjack16 said:

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If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

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If your two options were 10/250 & 20/250 you'd making a poor financial choice to take the second one.

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That's not what we're discussing.

We're discussing the difference between 10/$500MM and 20/$700MM

In essence he's making a 40% return in 10 years for almost 0 risk instead of taking $500MM and investing it in an uncertain economic climate. Sure, he could potentially make a lot more. He could potentially lose it all.

At some point the question is are you cool with living on $40MM a year of salary and endorsement money for an essentially guaranteed additional $200MM return in 10 years when his playing days will be done.

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That is literally what tjack said.

tjack16 said:

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If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

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Why would you let the owner earn the float on your money? 10/250 should be 20/350.

Mathguy64 said:

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tjack16 said:

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If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

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Why would you let the owner earn the float on your money? 10/250 should be 20/350.

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If he needs the money that bad there is always JG Wentworth to bail him out

n_touch said:

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Mathguy64 said:

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tjack16 said:

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If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

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Why would you let the owner earn the float on your money? 10/250 should be 20/350.

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If he needs the money that bad there is always JG Wentworth to bail him out

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877 CASH NOOWWWWW

The Porkchop Express said:

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Lonestar_Ag09 said:

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htxag09 said:

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Buck Compton said:

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Deferred monies are discounted at a 5% rate and then applied to the term of the contract to calculate an AAV.

No one predicted that someone would do it for 97% of a $700M contract. And no one else will ever do it again to this scale because they don't have the Ohtani endorsement fallback.

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Thanks, my biggest question has been wouldn't the deferred monies effect the luxury tax when paid and hadn't seen it answered before this.

Also, while I agree that nobody will do it to this scale, you can argue that other's have potential to still do similar contracts even if they don't have the endorsement fallback.....Take Verlander for example, he doesn't have the endorsements Ohtani has, but still probably has a couple mil in endorsements? Also, he has a career earnings of $300mm+ and a wife that makes a few mil a year. So the opportunity to do something similar during his free agency could definitely have been there.

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a few mill a year...fairly sure she makes more than him annually and career earnings are way in her favor

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Kate Upton's net worth is listed as $25 million, so not even close between the two of them. Some Internet research says she can make $50,000 per photo shoot though.

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So youre saying there is a chance if we all pool money together or start a gofundme... lets start our own TOFA Stacked account

Farmer1906 said:

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tjack16 said:

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If I was in that position for like a 10 year 250M type of deal (I'm 30 for reference). I'd take it basically 12.5M per year over 20 years. So defer half of it to the end

Thats basically 1 million per month until I turn 50

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If your two options were 10/250 & 20/250 you'd making a poor financial choice to take the second one.

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But if you add an additional 50mm or more it isn't

Mets doing Mets things.

Mets #4 prospect Ronny Mauricio tore his ACL in a Dominican Winter League game pic.twitter.com/zgebGd5wMM

— Talkin’ Baseball (@TalkinBaseball_) December 12, 2023

Royals are actually trying.

The #Royals are “close” to finalizing a 1-year deal with free-agent RHP Chris Stratton, per @anne__rogers pic.twitter.com/yD0C6ucA6N

— MLB Deadline News (@MLBDeadlineNews) December 12, 2023

Lugo’s contract with the Royals is 3-years $45M, per @JonHeyman

KC was said to be aggressive in the SP market this offseason and Lugo was long-linked to them.

Ragans, Lugo, and Singer (if he can bounce back) is an intriguing start to a rotation.

Hopefully they’re not done!

— MLB Deadline News (@MLBDeadlineNews) December 12, 2023

Don't forget Will Smith.

In the AL Central it doesn't take a massive overhaul to be competitive.

Bassmaster said:

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Some of you claiming you would defer all of this money obviously never took basic finance. From a financial perspective, it is a pretty risky/stupid deal by Ohtani.

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I wouldn't defer it if I didn't have to … but the hypothetical was if you had to, how would you split it. I'd do it to where it's evenly distributed over a longer period of time. Rather than what Ohtani did with it being 95% backloaded

Is it just me or has the off-season been a disappointment for Astros fans in terms of acquisitions for 2024? I strongly feel the team needs another LH bat, another strong reliever and another rotation starter.

Spring training is still two months away but so far the signing of Caratini is the only decent pickup for the teams needs.

Not sure of how I feel about Brown as GM - thoughts?

Jim is proving to be a tight ass. At least that's the optics

Have Maton or Stanek signed anywhere?

BCEDAg said:

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Is it just me or has the off-season been a disappointment for Astros fans in terms of acquisitions for 2024? I strongly feel the team needs another LH bat, another strong reliever and another rotation starter.

Spring training is still two months away but so far the signing of Caratini is the only decent pickup for the teams needs.

Not sure of how I feel about Brown as GM - thoughts?

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Play GM with the thought of your boss setting the budget and being stringent.

Who do want the Astros to get within the parameters set by the owner?

You can't play the "not my money, so I'd sign this guy card."

Yeah. We aren't the Rays. But we aren't the Dodgers/Yankees/Mets either. We aren't even the Rangers.

We have a budget and it caps out at the CBT. As much as Crane and whoever plays GM says we don't have a cap, we have one and we are at it.