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But… Ohtani’s annual salary is only 2.6 billion won? A “Great Trick of All Time” that is rampant in “Unanswered” contracts

Jeff Bankruptcy of ESPN and Mark Pinesand of MLBcom said on the 12th (Korea time), “The 10-year, $700 million (924.7 billion won) contract of Shohei Otani will be paid only $2 million (about 2.6 billion won) per year for the next 10 seasons,” adding, “The payment of $680 million (about 898.2 billion won) will be delayed until the end of the 10-year contract.”

This year’s MLB stove league is called a “tidal year.” That’s why there are no big players who will be the center of the issue. However, the MLB stove league fever is already at its peak just by the existence of “special” Ohtani. This is because the LA Dodgers signed a 10-year, 700-million-dollar contract with Ohtani that would shake the history of professional sports around the world on the 10th.

Ohtani was in the spotlight of the media around the world in this year’s Stove League. He was curious about how big a deal Ohtani, who has won two MVP based on his performance as a leaguer, will have in his arms and the winner of the scramble. Ohtani has been receiving a lot of attention since the Stove League began. It is no exaggeration to say that all 30 Major League teams had hoped to recruit him, regardless of the team’s financial status. 안전한 파워볼사이트

As time passed, teams burdened with paying Ohtani’s massive ransom began to withdraw, and the recruitment race quickly entered a five-way race. The Los Angeles Dodgers, who showed an explicit interest even though this season’s schedule was not over, as well as the “friendly” Los Angeles Angels, Toronto Blue Jays, Chicago Cubs and San Francisco Giants, remained the final candidates for Ohtani’s recruitment. And the final winner was the Dodgers.

The Dodgers has offered Ohtani a 10-year, 700-million-dollar contract, the largest in the history of professional sports worldwide. The annual salary alone amounts to 70 million U.S. dollars. Even though Ohtani was compensated for some of his spending by increasing ticket sales, selling goods and broadcasting rights, it was obvious that he would be burdened. In particular, considering that the first luxury tax base for the 2024 season is 237 million dollars, Ohtani’s annual salary of 70 million dollars was a huge amount equivalent to about ⅓ based on the luxury tax.

This is where the trick appeared. The Dodgers caught Ohtani’s attention by offering him a whopping 10-year, 700-million-dollar contract, using a “dipper” clause to suspend part of his annual salary. In other words, Ohtani’s annual salary is 70 million dollars, but he is not paying it in full every year. To avoid the luxury tax, he used the expedient of paying Ohtani even after his 10-year contract was terminated.

Initially, details on how much Otani would be paid through the “Deepfer” were not disclosed. However, the details were revealed on Wednesday. According to multiple local media outlets including Jeff Bankruptcy of ESPN, Mark Feinsand of MLB.com , and Bob Nightingale of USA Today, Otani decided to give up 68 million U.S. dollars out of the 70 million dollars he was supposed to receive every year and only 2 million dollars.

The “dipper” clause also affects the Dodgers’ total annual salary. The “dipper” clause is applied with a “discount rate” considering the currency’s depreciation. Multiple local media outlets predict that Ohtani will be worth around 460 million dollars. Therefore, Ohtani’s impact on the Dodgers’ total annual salary will be around 46 million dollars, not 70 million dollars every year.

The fact that he offered to pay only 2 million U.S. dollars in annual salary, including the offer of a “defender,” can be considered to have been Ohtani’s “consideration” to prevent the Dodgers from having trouble managing the team beyond the luxury tax base. However, the Dodgers is not a team that cannot afford to pay its annual salary in a timely manner due to lack of financial resources. The fact that the “defender” clause lowered the total amount of the team’s annual salary can be seen as a trick after all. Despite the “unprecedented” deal with Ohtani, the Dodgers is now able to ease the burden of luxury tax through various expedients.

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