Unreal.
Dodgers rotation: Snell, Yamamoto, Ohtani (once available), Glasnow, Kershaw (presumably), May, Gonsolin, Miller, more. Also favored for Sasaki. https://t.co/USaq2NPVpn
— Jon Heyman (@JonHeyman) November 27, 2024
The Dodgers estimated luxury tax payroll will be around $321 million in 2025.
— Michael Schwab (@michaelschwab13) November 27, 2024
That's $80M over the tax for the Dodgers.
Insane.
spadilly said:
5 year, $182 million for Snell.
Unreal.
Dodgers’ deal with Blake Snell includes some deferred money, source tells The Athletic. https://t.co/ZO6X9C4b1k
— Fabian Ardaya (@FabianArdaya) November 27, 2024
Snell gets $52M signing bonus #dodgers
— Jon Heyman (@JonHeyman) November 27, 2024
tjack16 said:
Serious question… what's stopping other teams from giving out the Ohtani deal and cheating system?
Let's go get Juan Soto and pay him all his money starting in 2035 after he's retired with 4 rings for us
Farmer1906 said:Snell gets $52M signing bonus #dodgers
— Jon Heyman (@JonHeyman) November 27, 2024
Dodgers’ deal with Blake Snell includes some deferred money, source tells The Athletic. https://t.co/ZO6X9C4b1k
— Fabian Ardaya (@FabianArdaya) November 27, 2024
TRM said:
I was rooting for an asteroid.
MLB is going to have to get a handle on this deferred pay crap. Is it time for a salary floor and cap in baseball?Mathguy64 said:
Snell is deferred? So it's what? $3MM/yr, 5 years and a lump sum of $140MM
MLB is going to implode over the Dodgers doing this. Because nobody else can get players to do this.
Wabs said:MLB is going to have to get a handle on this deferred pay crap. Is it time for a salary floor and cap in baseball?Mathguy64 said:
Snell is deferred? So it's what? $3MM/yr, 5 years and a lump sum of $140MM
MLB is going to implode over the Dodgers doing this. Because nobody else can get players to do this.
Dodgers don’t appear to be out on Juan Soto even now. Hard to see them as a favorite however. Even this juggernaut of a team with a great business model and huge revenue has to have limits, no?
— Jon Heyman (@JonHeyman) November 27, 2024
Marvin said:Wabs said:MLB is going to have to get a handle on this deferred pay crap. Is it time for a salary floor and cap in baseball?Mathguy64 said:
Snell is deferred? So it's what? $3MM/yr, 5 years and a lump sum of $140MM
MLB is going to implode over the Dodgers doing this. Because nobody else can get players to do this.
Very much yes. And make it a hard cap with no deferrals. Dodgers are just gaming the system at this point… but the Astros are the cheaters? Sure.
Changes in the future tax rates is irrelevant. They calculate TVM for the contract based on a rate in the CBA over the life of the contract, so Ohtani's $70M a year counts as roughly $46M a year towards the luxury tax this year. The difference between the $46M and $70M never counts towards any tax, it's assumed that $46M in 2024 roughly equates to $70M in 2034 (when it is paid). The fix is simple, just don't apply an interest rate and count all $70M towards the luxury tax now, which will eliminate a lot of incentive for doing this.agproducer said:
Looking into Dodgers payroll, it looks like they have several deferrals including Ohtani, Freeman and Snell. They are paying Justin Turner in deferral salary in 2025 & 2026.
Ohtani's is the most egregious with a $2 million salary out of $70 million a year. It's just ridiculous.
A few deferrals are ok, but it looks like LA is trying to game the system with the idea that the tax penalties will be raised in the future, so it won't affect it that much.
Manfred sucks as a commissioner, but if he can help solve this competitive balance between the haves and the have-nots as well as the blackout thing, I'll tip my cap and eat crow. I have little faith that he can do that.
redline248 said:
Go listen to him talk and see what you think
I didn't know that. Great analysis.MaxPower said:Changes in the future tax rates is irrelevant. They calculate TVM for the contract based on a rate in the CBA over the life of the contract, so Ohtani's $70M a year counts as roughly $46M a year towards the luxury tax this year. The difference between the $46M and $70M never counts towards any tax, it's assumed that $46M in 2024 roughly equates to $70M in 2034 (when it is paid). The fix is simple, just don't apply an interest rate and count all $70M towards the luxury tax now, which will eliminate a lot of incentive for doing this.agproducer said:
Looking into Dodgers payroll, it looks like they have several deferrals including Ohtani, Freeman and Snell. They are paying Justin Turner in deferral salary in 2025 & 2026.
Ohtani's is the most egregious with a $2 million salary out of $70 million a year. It's just ridiculous.
A few deferrals are ok, but it looks like LA is trying to game the system with the idea that the tax penalties will be raised in the future, so it won't affect it that much.
Manfred sucks as a commissioner, but if he can help solve this competitive balance between the haves and the have-nots as well as the blackout thing, I'll tip my cap and eat crow. I have little faith that he can do that.
The bigger issue is what other teams can do this? Would Ohtani do this with the Rays or would he be concerned they have to file for bankruptcy in 2034 when it's time to get paid? Who would buy the Rays in 2034 knowing they are half a billion on the hook for a guy not playing on the team and with a crap market to generate revenue?
That has been the case for a long long time.agproducer said:I didn't know that. Great analysis.MaxPower said:Changes in the future tax rates is irrelevant. They calculate TVM for the contract based on a rate in the CBA over the life of the contract, so Ohtani's $70M a year counts as roughly $46M a year towards the luxury tax this year. The difference between the $46M and $70M never counts towards any tax, it's assumed that $46M in 2024 roughly equates to $70M in 2034 (when it is paid). The fix is simple, just don't apply an interest rate and count all $70M towards the luxury tax now, which will eliminate a lot of incentive for doing this.agproducer said:
Looking into Dodgers payroll, it looks like they have several deferrals including Ohtani, Freeman and Snell. They are paying Justin Turner in deferral salary in 2025 & 2026.
Ohtani's is the most egregious with a $2 million salary out of $70 million a year. It's just ridiculous.
A few deferrals are ok, but it looks like LA is trying to game the system with the idea that the tax penalties will be raised in the future, so it won't affect it that much.
Manfred sucks as a commissioner, but if he can help solve this competitive balance between the haves and the have-nots as well as the blackout thing, I'll tip my cap and eat crow. I have little faith that he can do that.
The bigger issue is what other teams can do this? Would Ohtani do this with the Rays or would he be concerned they have to file for bankruptcy in 2034 when it's time to get paid? Who would buy the Rays in 2034 knowing they are half a billion on the hook for a guy not playing on the team and with a crap market to generate revenue?
But -- that is a good point. Other teams are not able to do this -- especially small market teams.
The competitive balance is out of whack. You have to spend to compete, and many cannot. The smaller market teams are just farm teams for the richer, big market clubs.
Absolutely true, but it hasn't seemed this extreme or lopsided before.Farmer1906 said:That has been the case for a long long time.agproducer said:I didn't know that. Great analysis.MaxPower said:Changes in the future tax rates is irrelevant. They calculate TVM for the contract based on a rate in the CBA over the life of the contract, so Ohtani's $70M a year counts as roughly $46M a year towards the luxury tax this year. The difference between the $46M and $70M never counts towards any tax, it's assumed that $46M in 2024 roughly equates to $70M in 2034 (when it is paid). The fix is simple, just don't apply an interest rate and count all $70M towards the luxury tax now, which will eliminate a lot of incentive for doing this.agproducer said:
Looking into Dodgers payroll, it looks like they have several deferrals including Ohtani, Freeman and Snell. They are paying Justin Turner in deferral salary in 2025 & 2026.
Ohtani's is the most egregious with a $2 million salary out of $70 million a year. It's just ridiculous.
A few deferrals are ok, but it looks like LA is trying to game the system with the idea that the tax penalties will be raised in the future, so it won't affect it that much.
Manfred sucks as a commissioner, but if he can help solve this competitive balance between the haves and the have-nots as well as the blackout thing, I'll tip my cap and eat crow. I have little faith that he can do that.
The bigger issue is what other teams can do this? Would Ohtani do this with the Rays or would he be concerned they have to file for bankruptcy in 2034 when it's time to get paid? Who would buy the Rays in 2034 knowing they are half a billion on the hook for a guy not playing on the team and with a crap market to generate revenue?
But -- that is a good point. Other teams are not able to do this -- especially small market teams.
The competitive balance is out of whack. You have to spend to compete, and many cannot. The smaller market teams are just farm teams for the richer, big market clubs.
That drives innovation from the smaller market team. They work to level the playing field by thinking outside the box. The big market teams hire those guys away and implement it with their clubs. Then it all starts over again.
One key issue is that MLB steps in and ruins innovation. It's like when they banned the shift or made relievers pitch to 3 batters. If they mess around and force SP to itch a certain amount, it'll keep hurting the innovative teams.
Mathguy64 said:
There is no way the LAD payroll is under $500MM. All that deferred money is bull*****