Dan Patrick reacts to reports that Shohei Ohtani will be deferring $680 million of his $700 million contract with the Los Angeles Dodgers in order to keep the team competitive
His problem is more with contract he got. Becouse hardly any team could even offer 500m for a players. And then you see lack of competition because you know. No chance to win anything
@@markosekulic119 What lack of competition? That's just a weird take by Dan. Ohtani was in talks with multiple teams with the same offer who could afford it. Is he just being a contrarian to create content?
@@greggibson33yeah that’s what I was thinking as well. Also this is not something new to sports. European soccer clubs does this all the time. We might have seen this first time in BB. Also with the number of games BB teams plays, it doesn’t matter.
I really don't think this could POSSIBLY become a trend. How many players are making anywhere NEAR what Ohtani is making in endorsements off the field? And doing deferrals like this actually devalues the overall contract. How many baseball players would be willing to take that big of a hit just because they want to win? Most pro athletes chase the dollar.
Exactly! if you ask any baseball player why they are playing, it's to chase the check. They want to buy homes, cars and support family and have a certain lifestyle with a big check
I think it's pretty smart move by Ohtani. He's going to make 50-60mil off the field while he's still playing. Then make 68M a year for 10 years after he retires. Also, banding himself as a team player. Great marketing move. His teammates going to see that and say Damm he's a great teammates.
Yeah but it's a dirty move. Stop lying to yourself it's to get a unexpected edge on everyone else. It's too blatant and now he's just gonna get hate from every other team. Don't be so greedy and try to get that much of a edge!!
🤓😎 Im sure Ohtani has plenty of accountants and lawyers working on the deferment. He will NOT lose any bit of the $700 in present and future value. He will make more than $700 when the 10yrs is done! and pay very little taxes!
@@gruevlock24😂 he went to every team with the same offer. Every player and every team can do the same thing. Stop being a jealous hater. MLB isn’t even angry and they won’t change that rule.
The deferred money rule has always been there for so long and now all of a sudden people want to react because Ohtani had the right to do it for that much. Dodgers and Ohtani are just following the rules within the MLB CBA and it's not illegal what they're doing.
Ohtani is making 40 million a year with his activites outside of baseball. Probably the only baseball player who could afford to defer his wages like this. No other player would agree to this.
🤓😎 Im sure Ohtani has plenty of accountants and lawyers working on the deferment. He will NOT lose any bit of the $700 in present and future value. He will make more than $700 when the 10yrs is done! and pay very little taxes!
Ohtani wants trophies not excuses. If the dodgers can’t win a WS while he’s there it’s on them because he gave them all the flexibility in the world to make a team around him
🤓😎 Im sure Ohtani has plenty of accountants and lawyers working on the deferment. He will NOT lose any bit of the $700 in present and future value. He will make more than $700 when the 10yrs is done! and pay very little taxes!
How is ohtani like Durant? KD would never defer money like this, he’s a stereotypical nba player who blows all his money on strip clubs, air Jordan’s, and gucci….
@@victorle7693 Ohtani wants no competition. He wants the path of least resistance. He’s already joining a huge contender, but he’s joining them for peanuts so they can add even more stars. Scratch that, it’s even worse than KD. It’s like if KD joined and THEN took a payout to let the Warriors also sign another star. It’s a joke of parity and competition. Shohei wants to have his cake and eat it too and he’s incredibly soft for it.
I'm really happy for the LA Dodgers they're getting a great player and a great ambassador for baseball. MLB needed this positive news to promote the resilience of the league and its rising star players.
I think that was the reason for strike in 1995. Some owners of small teams proposed a salary cap and MLB players go on strike and there was no MLB season for one year.
Some people don't understand that many mid-level and lower teams make more in profits than large market teams. The way the large market teams make more money is when they sell their teams for a higher value.
@@evilzilla4053 then why dont they do it? ohtani does not care about money. he was living in a baseball stadium using 200 dollars a month in japan. everyone else can do the same thing but they won't.
@@evilzilla4053 it's totally fair. imagine if you make 70k a year and your job will pay you only 2k for 10 years and they'll start to give your money after 10 years. will you do it? no. of course not. same thing with baseball players. no one is crazy enough to accept this except ohtani. no one is stopping other players and teams from doing this. tell aaron judge or degrom to do this. will they do it? hell no. mind you, ohtani also makes 50m a year just from endorsements because he's a global superstar but the point still stands.
By reputation in Japan he doesn't spend money on himself in any flashy way. He gave a baseball glove to each kid in public schools in Japan plus many other programs.
@@mph7282 u don’t get it. He still have to pay tax in Japan. Some people said that his deferring is for tax evasion : ‘when he leaves California back to Japan 10 years later, Ohtani can save tax. ‘ My comment is to answer this bull. Coz when he backs to Japan 10 years later, he has to pay more tax than now.
@@carlnilssonyoung8961 we don’t know where he’ll be living in 10-20 years. The point about taxes is in reference to the taxes he’d owe in the U.S. That should have been obvious.
It's basically a 20 year contract for S700 million dollars which roughly works out to $35 million a year. Because of the soft cap, the Dodgers will have a $46 million salary cap hit. LA has the money to pay Ohtani, so there's no risk at all for the team.
Not really. The Dodgers only get him for the next 10 years. After that, he’s free to sign with another team while the Dodgers pay him $68 million/year. The Dodgers can look at it as spreading it out for 20, but he only has to provide 10 years of service to them.
I'm amazed that a bunch of guys get together in a room full of dolls,and actually think they can figure out why a man or professional multi billion $ organization,conducts business the way they do.Why does a man defer a large part of salary? Why do they spend hours wondering? It would be like me thinking for hours How can a bunch of grown men get paid to sit in a cluttered room,and talk non stop about nothing that concerns them
Yea you are not getting paid to wonder why these guys are talking about nothing that concerns them. They are making money talking about what they are wondering. That’s why and that’s the game of sports radio talk shows and tv shows.
He is only paying taxes off the $2million contract and the off the field money, after the 10 year contract is over he will be paying japan taxes. BRILLIANT!
The Japanese tax rate is high, almost the same as the California tax rate. It does not make sense from a tax rate perspective for him to return to Japan and receive that money after he retires. It may be best to set up residence in Dubai.
Teams have to fund the deferrals before they are due...to avoid it being a pitfall in later years. So it's not an issue that should affect the solvency of teams.
I am a die hard Nats fan. Been here since their inception. I will go to a Nats vs Dodgers game in both DC and LA. It doesnt matter who I root for. It will be revenue for the league. Spending the most cash never guarantees a World Championship, let alone a dynasty. My 2019 Nationals are a testament to that. The season Harper leaves for Philly, we win a chip. In terms of sustainability, the wild card promises small market teams a chance at the post season dance. All you need is a 1% chance. To compete against all odds is what solidifies a champion. I am a fan of the Ohtani strategy. Not seeing the Big Sho in the post season has been BAD for baseball. To see any one player dominate (to root for or against) for championships is the one thing baseball has been missing. Baseball deserves to compete against Football and Basketball for national attention.
Yeah I agree with some comments here. Ohtani gets some hate for this deferred payment, mainly is because is for the dodgers. Or Yankees. If he signed with other smaller teams with the same contract he won’t get any hate
I really like what Ohtani did. Deferring a massive amount of money to help your team remain competitive is respectable, but I don't know if it's a good thing going forward. This is particular deal is great for baseball because it puts Ohtani in a winning big market team. However, seeing every good player on a winning big market team with significant deferrals written into their contract isn't good for the competitiveness of the league. Seems like the kind of thing that needs to have some limitation put on it going forward. That said, there aren't a lot of athletes in the world, if any, who would think to do this, so maybe it isn't actually a problem.
I mean, Ohtani makes so much money off the field anyway, like $50 million dollars a year? So in the grand scheme of things, he can live comfortably on his endorsement deals while still raking in $68 million dollars a year when he is retired. Ohtani creates cap space, still gets paid after he is retired, and the Dodgers can hunt around for more talent.
From the guy who spent less than $1000 a month why his parents managed his money, he will do just fine on his 2 mill + 40 mill in endorsements. The Dodgers won’t be tied up bcus the return in revenue he will get. They can afford to pay him.
Ohtani's deferral, if the Dodgers win two+ rings, will likely be heralded as one of the greatest contracts of all time, if he can maintain his impact on the game. Good on him for making it possible for his team to stay in contention, while simultaneously paying him what he is worth.
The thing is shohei is probably the only player who would do this but i get the concern. Moving forward i think there will be a new rule Limiting the percentage of the deferred money
It's never been fair in baseball. There is no salary cap, and the players will never allow it. And deferred salary has been a part of baseball for a long time. Remember Bobby Bonilla? I thought he was still getting paid by the Mets.
The things about his contract is that it's on the team to surround othani with top tier talent, for 10 years your best player is getting paid by 2 million opening up space for other big time players.
So many people are clueless about how the deferral system works. Not all deferrals are allowed to be used to lower payroll. For example Freeman and Mookie have a lot of deferrals but those deferrals don’t save the Dodgers a dime in payroll because they didn’t register them with the league. Therefore they can pay out those deferrals however they like. The Ohtani deferrals are registered with the league. Which means the Dodgers MUST pay 44 million to the MLB every year. MLB then must take that 44 million and put it in their league approved savings fund at 4.5% interest. Then in 10 years they will take out the 44 million the Dodgers paid, plus the 24 million it collected in interest and pay the 68 million to Ohtani. This process will happen every year for a decade. So when the 10 years is over the Dodgers won’t have to pay Ohtani a penny. It truly is only a 10 year 470 million dollar deal from the Dodgers perspective. He will get 460 million from the Dodgers and 240 million from a savings fund. 700 million total with the Dodgers responsible for only 460 million.
Maybe the league should put a percentage on how much one player's salary can be deferred. Also a percentage on how much a team can defer on all players.
You have to have a guy that's getting 60 million in endorsements for this deferral contract thing to get out of hand. Most players (99%) want their money ASAP.
EPL looks like they will cap amortization at 5 years so teams can’t bring down their expenses to meet financial fair play rules. Chelsea spent a billion and is under the rules due to their amortization of new players. But how many players can earn 50/year on endorsements? That shortlist is real short. Teams won’t be able to skirt luxury taxes that easily. More likely is with cooking the books with other expenses.
This is a win-win situation for LA. The Dodgers will recoup nearly his entire contract by the end of next season. The entire country of Japan just pre-ordered an Ohtani Dodgers jersey.
doesnt matter what other teams can do or not. cities and teams arent equal. real life isnt equal why should things be wrongly nerfed to make it fair across the board. handicapping teams isnt an improvement and it never could be
I don't get where this notion of "expect WS titles" is coming from. There are NO guarantees in winning a WS. shit, it's harder than ever to win it now. it's a total crap shoot and rarely if ever does the "best team" ever win it. lotta luck involved in winning it and timing. this not basketball or football. one player doesn't have the effect, like in those sports. Stanley Cup and WS is hardest to win IMO.
Mr. Patrick, I am one of your students at Full Sail. After watching this segment and how you mentioned teams like KC would not be able to do this, do you think that bigger teams like the Yankees, Braves or Astros use this deferment going forward? As you said, it is dangerous but that doesn't mean teams will not flirt with it. How do you think this will apply to salary caps and individual contracts? I think the gentlemen (I believe you called him Steve; I apologize if I'm wrong) hit the nail on the head about this being a massive red flag. A change in how things are or have been done at this point is another example of money being more important than the game itself. Yes, people will continue to watch and follow their favorite teams, but this could be a significant blow to the sport in general. Who's not to say that this is now going to become the way deals are done in other sports as well? I do not think this is something that MLB can allow to happen going forward and needs to rewrite the rule(s) to prevent such loopholes. Thank you for your time.
Again, it’s more about the money than the game. I understand your reply and I’m trying to make a point about this deferment process and how it poses as a cancer to all sports.
The biggest impact Ohtani is going to have contributed is the 2 way pitcher/hitter. The pitcher only players are going to die out. Just too much money to leave on the table.
people chasing money and paydays dont bring anything important to any part of society. pay me now idiots are just that. idiots. players matter when they win. not because of what they ever get paid. teams that never win dont matter and dont deserve the shot to be mediocre in the playoffs.
The competitive balance argument isnt a strong one because they collectively bargained for this. It was just genius move on Ohtani’s part and people are up in arms about it because it’s out of the norm.
I think that people may be overlooking the long game that Otani could be playing. Certainly the team is going to have to pay him a lot of money even after he retires (the Dodgers could make provisions for future costs, but I doubt theyll plan that far ahead). Theoretically that could cause the Dodgers financial problems in the future. But if he does remain with the club for a decade, it is going to become a part of his image. He will be tied in to the success of the club, and would want to avoid being a financial drain. (hope youve followed me this far...) In 2035 or thereabouts, when the Dodgers have to confront the actual reality of paying Otani 68 mil a year to do nothing, he lets them know that he would be prepared to take a stake in the club, in lieu of cash. Personally I think it is a dream relationship. Just disappointed the Mariners couldnt have convinced him to gve them a shot.
It really depends on what those future contracts are and how the dodgers manage their finances. Shohei ohtani will bring in 700m for the dodgers just standing in the dugout. So you bet this is a steal for any good business
The Dodgers differeed Money Situation reminds me of the Defi Crypto Crash from Last year. You Had Time Wonderland Fall & Luna , Which ended up Losing about 60 Billion BONEZZ . The House of Cards Can Only Go so High and When The Big Boys Start Grabbin There Chips The Little Guys Go Overboard. This Could Be a Whipeout Of Epic Prepportions if Smaller Franchises That Are unstable i.e. the A's for example begin following the blueprint. Who Says there Aernt 3 or 4 more Superstar Homegrown players Under the Dodgers Farm system Who Each Get a Bag that of Which could be 150-220 million a pop and u differ 20-30% into the Ohtani Years plus the Superstar Free Agents LA's Gonna Bring in Per usual which is another 10-15% into that Frame if not Later. It Starts To get confusing for the average Fan. What if a Big Market team leaves and goes to a state with new tax Guidelines and They Can Pay players even more because theres no State Tax. That only increases the gab between the have and have nots which is already a problem in the Game.
My question is, does deferment equal nothing but debt to the team or does it actually boost the value of the team and to what extent? I mean, Guggenheim could sell the Dodgers before having to pay all the deferred salaries it owes but wouldn't the new owner still be obligated to pay? In other words, couldn't this actually increase the total value of a team? Also, what's wrong with a super star athlete being in a position to take an ownership stake when his playing days are over? Magic Johnson did it and that's been great for the Dodgers.
The only reason it works is because of ohtani. Few players are willing to defer 68m a year. Most players want their money and I don’t blame them. You work all your life to become a pro and you want your money now. That’s just ohtani. And of the 2m per that he is taking he will have change. He won’t spend that much per year
Not an issue. Anyone can do it. It happens a lot, it's just never reported. And this has been agreed upon by the MLB and players union. Knee jerk reactions for casual fans it seems....
Ninja the best athlete in the world dead or alive and smartest athlete ever dead or alive. Dis boy is getting a statue when it's all said and done. Congrats Ninja
Are we arguing to protect owners from themselves? You know, the guys that are worth billions an presumably got that way because they have been successful business owners (the majority of them at least)? What are we exactly worried about? What is this slippery slope? The only reason Shohei can defer all that money is because he can afford to do it. Not all ballplayers, perhaps most ballplayers, can't defer a contract like that, and most surely won't. The only reason the Dodgers can do it is because they can almost guarantee 3 to 4 million in attendance every year, plus TV, plus merchandise, plus advertising, plus everything else. The Guggenheims, remember, are financial advisors, investors, and hedge fund managers.....baseball contracts are checkers to the kind of money game chess they play as their bread and butter business. They manage $325 billion dollars....so deferred $700M is peanuts.
Maybe Ohtani can save baseball by buying Sinclair Broadcasting, the parent company of Bally Sports, and start paying the mid level teams that lost their local TV contracts.
This is how superteams get formed, something that fans don't like if it's not their team. Imagine if one team gets the top 4 pitchers, top closer, and top 5 hitters together, each one deferring their contract. Then they win titles back-to-back-to-back-to-back-to-back-to-back-to-back..... Imagine if other teams sports do the same thing with their top players. Get ready for riots in the streets in every team city.
This type of contract should be rejected by MLB. Yes, I know they did it for Freeman as well. This approach skirts the cap. His 70 mil should be counted against this years cap. What a joke!!
🤓😎 Im sure Ohtani has plenty of accountants and lawyers working on the deferment. He will NOT lose any bit of the $700 in present and future value. The $680m deferment will be tied to a safe interest rate! He will make more than $700 when the 10yrs is done! and pay very little taxes!
You are only circumventing the rule if there is controversy that he isn't worth $46M. If the controversy is because the Dodgers have more money now to spend, then doesn't the luxury tax already address this problem?
no because they are only giving 20 million dollars a year for ten years. their tax will be 46 million dollars. by doing this they saved money even though they gave the biggest contract in the history of sports, that should have bankrupt them.
Nobody can "expect world series titles"..... baseball doesn't work like that, and Ohtani wouldn't say as much. He's putting himself in the best position to win that's it.
who was the best team in baseball last year? I think it was the braves. why couldn't he do this with the Braves? he basically fuck you I'm going to the team that cheats
@@meltednostrilsbornwithoutn781 He said he wanted to join a winning team and who was the best team in baseball last year? oh, I think it was the Atlanta Braves, wasn't it? and if he planned on deferring his contract the whole time, why couldn't he do this with the best team in baseball?
@@rwwilson21 He doesn't even want to be on the East Coast. I don't think the Braves were going to spend nearly as much for him either even with him deferring money. They still have to pay it eventually.
@@meltednostrilsbornwithoutn781 he also said that being with a winning team is more important. paying it later with blow up their salary cap. which in turn is lovely because I hate that fucking team.
So he going to collect $680 million after his 10 year contract has been completed? When he moves to Florida or Texas with no state tax. I am sure California will have something to say about that?
there is nothing mysterious about the deferrals. if the dodgers were willing to pay $70M per year for the first 10 years, and ohtani said he'll defer most of it, then ohtani basically took a $232M paycut =($46.8M-$70M)x10=(AAV - salary without accounting for the time value of money) x number of years to keep the dodgers competitive. it's that simple. i think the players union should be upset about this deal because a player felt that he needed to take a paycut because of the luxury tax threshold. on the other hand, if $70M per year for the first 10 years was never on the table, all this is just optics. also, note that any team that can pay $468M over 10 years can do the same thing as the dodgers. they just need to save $44.8M (=AAV minus $2M) each year and put it in an interest bearing account. then after 10 years, they'll have $68M to pay their player each year. overall, i think $468M (or $700M) over 10 years seems fair for ohtani given his injury this year. i.e. ohtani is getting paid what we thought he would get paid, between $450M to $500M because of the injury. for those that are worried about ohtani not being able to pitch again at an elite level, keep in mind he played outfield as well in NPB. i think he can easily do what babe ruth did, and convert to a positon player. that would be my preference because that way he can focus more on his batting. i don't think he's reached his full potential as a batter yet in MLB or has fully adjusted to the league. i.e. he hasn't been able to bring back his leg kick that he had in japan which would generate more power.
How much yall wanna bet the LA Dodgers don’t win a Ring the next decade? Wouldn’t surprise me at all. Baseball is about chemistry & getting hot at the very end.
And you don’t think they will have either of those things going for a decade? They’re 3-5 titles during the span of this contract. The Dodgers have had great chemistry and lost. The Yankees had 25 individuals show up and won 3 titles. They’re no absolute way. Match-ups, rotational luck, based on each team’s previous series lengths, etc…
in the end it doesnt fucking matter what fans think of player contracts or luxury tax or anything at all. peoples opinions on things that they have nothing to do with are irrelevant.
Worried about competitive balance in MLB?! Really?! There has never been competitive balance in MLB and never will be until there is a restrictive salary cap that gives the small market teams a fighting chance. Pretending to worry about competitive balance in MLB is either extremely ignorant or extremely disingenuous. Either way, this is bad sports journalism.
Neither Ohtani nor the Dodgers did anything wrong. It's shocking that MLB was too stupid to consider the possibility that this could happen. Actually, it's not shocking at all.
Rules aren't made before the thing they are made after. No way to predict every situation,.most pro athletes want all their money upfront, guaranteed and right now.
@@colinnixon7739 The NHL had to take action after teams signed contracts with 15-year terms to reduce the annual cap hit. MLB's rules allowed for (apparently unlimited) discounting so it shouldn't be surprising that a team eventually exploited this loophole.
@MarcRavingMad yeah but the mlb and the players like it this way. This only negatively impacts the fans of small market teams. The players, the owners and the organizations don't care as much about parity. That's why there is still no cap.
@@colinnixon7739 I'm not even objecting to what happened. It does seem like it will advantage big market teams, but if those are the rules that have been agreed, then people can't complain when they are followed. However, I feel like we will start to see more teams taking advantage of this loophole to avoid the luxury tax.
@MarcRavingMad true but you still need a player to agree to it. Most won't. And most aren't 300 million dollar players anyway. It will balance out I think, but still it won't guarantee world series wins. I agree I don't object to it in actuality i dont think this is a big deal in terms of a snowball effect. Not everyone will do this.
The Dodgers will set him up with the best trainers and doctors, and tell him “See ya’ next year”. Unlike the Jets, however, the Dodgers will still be very good.
All i want is ohtani to win a ws! Hes honestly the best player in mlb history but ir they dont win in their first two years, im clowning on every dodgers fan
