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Overpaying Ohtani

wazzu31

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I only mentioned California to be clear that I was NOT talking about California taxes, but I WAS talking about baseball taxes.

Ohtani is not getting paid 70M per year by the doggies, though. He is getting paid approx 46M per year. The additional 24M is interest that the 44M earns while it sits in a back account, untouched, for 10 years.
Which is still a 10 year deal for the Dodgers, and the full amount of that contract should be used in the CBT formula for the Dodgers. Doesn’t matter if it is deferred or not. Otherwise the CBT is pointless if owners can get out of paying the tax on top of cheaper teams cutting payroll.
 

calsnowskier

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Which is still a 10 year deal for the Dodgers, and the full amount of that contract should be used in the CBT formula for the Dodgers. Doesn’t matter if it is deferred or not. Otherwise the CBT is pointless if owners can get out of paying the tax on top of cheaper teams cutting payroll.
Interest doesn’t count towards the tax. Only salary counts towards the tax. His effective salary is 46M, not 70M.

A dollar tomorrow is not worth as much as a dollar today.
 

wazzu31

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Interest doesn’t count towards the tax. Only salary counts towards the tax. His effective salary is 46M, not 70M.

A dollar tomorrow is not worth as much as a dollar today.
All of the interest and structure is irrelevant. The CBT was about what the contract The Dodgers signed a $700 million dollar deal and won’t be paying the CBT for the $700 million while other owners and shedding payroll. That is completely against what the PA and any union stands for.
 

calsnowskier

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All of the interest and structure is irrelevant. The CBT was about what the contract The Dodgers signed a $700 million dollar deal and won’t be paying the CBT for the $700 million while other owners and shedding payroll. That is completely against what the PA and any union stands for.
If you believe a dollar tomorrow is the same as a dollar today, then give a million dollars right now. I will give you a million dollars in 2034.
 
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