Shohei Ohtani signs with the Dodgers (10 years, $700 million)

[Jay]

1 hour ago, Aaronkv said:

Dude wanted to be a Dodger all along. If there was a DH back then he would've chose them.

 

He really screwed the Angels good.

[Pancake Bear]

30 minutes ago, Chuck said:

 

This is 100% what is happening. 

Did anyone else see this? 

Shohei isn't just the greatest player of all time, he's also a freaking business genius. 

[mmc]

11 minutes ago, Angels_Make_Me_Drink said:

Ok but what exactly have the Dodgers won? They get meme'd to death for being a fucking fraud in the playoffs and a good majority of people don't respect their short season ring. Its not like Shohei is joining some perennial championship winning team to piggyback for rings lol. 

They make the playoffs every year, something this team didn't manage to do once while we had him

[jsnpritchett]

10 minutes ago, Angels_Make_Me_Drink said:

Ok but what exactly have the Dodgers won? They get meme'd to death for being a fucking fraud in the playoffs and a good majority of people don't respect their short season ring. Its not like Shohei is joining some perennial championship winning team to piggyback for rings lol. 

...and when he was on the Angels, Ohtani himself became a meme ("Tungsten Arm O'Doyle") because of their inability to win.  So what's your point?  The Dodgers are at least perennially in contention.

[Jay]

I wonder how he worked it out with his management company, only pulling $2M per year.

[Dtwncbad]

2 minutes ago, Pancake Bear said:

This is 100% what is happening. 

Did anyone else see this? 

Shohei isn't just the greatest player of all time, he's also a freaking business genius. 

Earning equity over time in a business is about as old as the hills.  You take substantially less than you are worth withe the current owner keeping the difference as basically payments toward the eventual sale.

That’s why the structure of the Ohtani deal caused a number of people to speculate the same thing.

Dentists, doctors, lots of blue collar type businesses like plumbing or auto repair, etc. . . . They very often set up equity earn out sales over time and enjoy the “cheap” labor during the earn out.

[Angels_Make_Me_Drink]

6 minutes ago, mmc said:

They make the playoffs every year, something this team didn't manage to do once while we had him

Which is why he left for a winning team lol. He has always been very clear that winning was his #1 priority. This isn't the NBA or NFL where 1/2 players can make your team a championship level team. I personally believe if the NL had the DH when he signed with us, he would've signed with the Dodgers. 

Whatever, its a moot point. He gave us 6 years and we've failed to make the playoffs every single time because we can't construct a playoff caliber roster, develop a farm, and can't get lucky breaks with injuries. Hell, we've made the playoffs once with Trout. Staying in Anaheim would've been silly for Ohtani. We were all banking on him being comfortable here and hoping that would sway him towards us. 

[Lazorko Saves]

What a minute, people think what?  Shohei gets his $700 million plus a 25% stake of a team that's currently valued at $4.8 billion.  So you think Shohei is actually getting $1.9 billion?

Ya'll bonkers.

Keep in mind, that in 2034 the Dodgers will almost certainly be worth $10 billion or so.

Or do you think Shohei will use the $700 million cash to buy a 25% stake in the year 2043, once he's got all the payouts?  By 2043 the Dodgers will likely be worth about $20 billion, but the Dodgers are willing to give him a 25% stake for only $0.7b?

Ya'll need to go back to junior high school math and economics classes.

[Amazing Larry]

2 minutes ago, Angels_Make_Me_Drink said:

Which is why he left for a winning team lol. He has always been very clear that winning was his #1 priority. This isn't the NBA or NFL where 1/2 players can make your team a championship level team. I personally believe if the NL had the DH when he signed with us, he would've signed with the Dodgers. 

Whatever, its a moot point. He gave us 6 years and we've failed to make the playoffs every single time because we can't construct a playoff caliber roster, develop a farm, and can't get lucky breaks with injuries. Hell, we've made the playoffs once with Trout. Staying in Anaheim would've been silly for Ohtani. We were all banking on him being comfortable here and hoping that would sway him towards us. 

What’s this “we” shit? The blame lies solely on Arturo. The dude is a disaster of a MLB owner. Gutted development and front office followed by terrible FA contracts. The guy needs to sell the team to someone who isn’t keen on hollowing out the franchise while putting lipstick on a pig. 

The Angels are the Meg Ryan of baseball. 

[Amazing Larry]

3 minutes ago, Lazorko Saves said:

What a minute, people think what?  Shohei gets his $700 million plus a 25% stake of a team that's currently valued at $4.8 billion.  So you think Shohei is actually getting $1.9 billion?

Ya'll bonkers.

Keep in mind, that in 2034 the Dodgers will almost certainly be worth $10 billion or so.

Or do you think Shohei will use the $700 million cash to buy a 25% stake in the year 2043, once he's got all the payouts?  By 2043 the Dodgers will likely be worth about $20 billion, but the Dodgers are willing to give him a 25% stake for only $0.7b?

Ya'll need to go back to junior high school math and economics classes.

I think people are saying Ohtani will get a stake in ownership in leu of his deferred payment. You may think it’s ridiculous but don’t forget that Magic Johnson is an owner lol. 

[Pancake Bear]

6 minutes ago, Lazorko Saves said:

What a minute, people think what?  Shohei gets his $700 million plus a 25% stake of a team that's currently valued at $4.8 billion.  So you think Shohei is actually getting $1.9 billion?

Ya'll bonkers.

Keep in mind, that in 2034 the Dodgers will almost certainly be worth $10 billion or so.

Or do you think Shohei will use the $700 million cash to buy a 25% stake in the year 2043, once he's got all the payouts?  By 2043 the Dodgers will likely be worth about $20 billion, but the Dodgers are willing to give him a 25% stake for only $0.7b?

Ya'll need to go back to junior high school math and economics classes.

25% is just throwing out a number. I doubt Geoff did the math on it. I think it's a 100% certainty that he's agreed on an ownership stakes deal. Passan literally said that is what Ohtani was asking for, and the deal is structured in a way that works that way. And no, I don't think it'll be in 2043. I think the deferrals will be essentially cancelled at his retirement and traded in for ownership shares and that has already been agreed on - I think the deal was contingent on it. 

But sure, call us idiots.

[Lazorko Saves]

10 minutes ago, Lhalo said:

I think people are saying Ohtani will get a stake in ownership in leu of his deferred payment. You may think it’s ridiculous but don’t forget that Magic Johnson is an owner lol. 

It's an MLB contract.  It's not voidable or supersedeable.  Per collective bargaining.  So they're going to have to pay him through 2043 in any case.  Sale couldn't be completed until 2043 then.

Magic Johnson bought a 4.5% stake in the Lakers.  That's in the range of financially possible.

A 10 year option on a 25% stake locked in at current valuation is way over a billion dollars of present day value.  I'm too lazy to do the Black-Scholes calculation on it, but it's way over $700 million, probably on the order of something like double that.

Edited December 12, 2023 by Lazorko Saves

[mmc]

 

[Lazorko Saves]

7 minutes ago, Pancake Bear said:

But sure, call us idiots.

Regrettably, there is no other word for people who think Shohei got a 20 year call option on a 25% stake of $4.8 billion dollar asset.

It's impossible.

It's only believable if the guy missed a decimal point, and the stake is something like 2.5%.

[mmc]

 

[Chuck]

8 minutes ago, mmc said:

 

 

[jsnpritchett]

 

[Taylor]

47 minutes ago, mmc said:

They make the playoffs every year, something this team didn't manage to do once while we had him

The Angels have to be the 2nd or 3rd least attractive franchise in baseball. If it weren't for their location, no FA would want to come here.

[jsnpritchett]

1 minute ago, Chuck said:

 

Trout would bounce off the wall and break a wrist, while Rendon would fall down and tear an Achilles as he jogged slowly in the general direction of the wall.

[Taylor]

5 minutes ago, mmc said:

 

[gotbeer]

Conspiracy theory time.  Could this be the reason why Yacht Boy pulled the team off the market abruptly?  That he knew that Ohtani was looking for ownership rights, and well, you can't sell a team and tell the new owner you aren't buying 100% of the team, that there is a future unknown party that will own somewhere in the area of 25% of the team.  ($2.7 billion current value / $680 deferred)

[gotbeer]

10 minutes ago, Lazorko Saves said:

Regrettably, there is no other word for people who think Shohei got a 20 year call option on a 25% stake of $4.8 billion dollar asset.

It's impossible.

It's only believable if the guy missed a decimal point, and the stake is something like 2.5%.

Actually, at forbes $4.8 billion valuation.  $680 million would be 14.16%.  You could say future value, but since the deferral doesn't take into consideration any interest, I'm sure the wink wink deal is on current value.  

My biggest issue with this deal, and I wonder if the MLBPU or MLB will block this deal because of it.  Is that the deal does not include interest.  I seem to recall that past deals of this nature where the salary was deferred, was blocked and required that interest payments be included.  And with interest rates where they are right now, that amount could be significant.

[Angels 1961]

How about Yippei, is he still using coupons at his local market. 

[mmc]

 

[Lazorko Saves]

2 minutes ago, gotbeer said:

Actually, at forbes $4.8 billion valuation.  $680 million would be 14.16%.  You could say future value, but since the deferral doesn't take into consideration any interest, I'm sure the wink wink deal is on current value. 

Okay, then you think the Dodgers have just paid Ohtani a heavily front-loaded 10 year deal.  $1.202 billion paid in the first year ($2 million salary, plus $1.2 billion ownership asset), 2 million for the next 9 years.  No $68 million dollar payments beginning 2034, just the 25% stake.

The value of that deal is $1.22 billion.  Current day value.  No future discounting required.

You seriously think that's what Ohtani got?

I'm just trying to help ya'll understand that any ownership share will be closer to 2.5% than 25%.