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

[Angels_Make_Me_Drink]

49 minutes ago, Lhalo said:

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. 

Well I should have said Arte. We was a reference tO the Angels, more specifically the asshole in charge. 

[mmc]

Ok well this is sad I'm gonna go to WingStop

[mmc]

 

[Lazorko Saves]

17 minutes ago, Angels 1961 said:

How about Yippei

Youppi?

[Pancake Bear]

12 minutes ago, Lazorko Saves said:

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%.

Reading is tough, huh? I guess you must be blinded by your own genius. It's 15%. The only person who said 25% was Geoff,  and I'm pretty sure he didn't check current value and was just throwing out a number. 

[gotbeer]

16 minutes ago, Lazorko Saves said:

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%.

Where do you get 1.2 billion at? The value of the contract is $700 million.

[RallyMo]

Ohtani has been so good at baseball that they’re willing to give him $700 million when he hasn’t even demonstrated that his surgically repaired arm can throw a pitch, let alone deliver the types of pitches that have shredded his arm twice now. Pitching is slightly less than half of his statistical value.

I know he’s been otherworldly great for three years now, but that injury really makes this deal a gamble the likes of which only the Dodgers or Yankees can really afford to take and lose.

That’s a bonkers contract, despite the financial benefit he can bring. Then again, we’ve seen him come out of this procedure and absolutely crush expectations once.

[cez]

If he were to somehow play all 1620 games of that 10 years, he'd be making $432,000 per game.  

[Lazorko Saves]

1 hour ago, gotbeer said:

Where do you get 1.2 billion at? The value of the contract is $700 million.

25% of Dodgers current valuation of $4.8b is $1.2b.  It's the minimum value *today* of the 25% ownership option that is being imaged maybe exists.  Such an option will have more than $1.2b in value by 2034.  See the Nobel Prize winning work by Black and Scholes if you're interested in the oddities of contract option pricing.

I'm just telling you that this 25% ownership theory is way off, financially/mathematically.  So is 15%.

Ohtani's not getting 25% ownership for $680m of future payments.  Nor 15%.  The correct application of option pricing models in those cases would value the Dodgers below the $2.15b that was paid by the current group back in 2012!  Not possible!

If such a deal exists, it will be something on the order of 2% to 5% or something in that range for a chunk of his payments after 2034.

[Vegas Halo Fan]

[ScottT]

2 hours ago, mmc said:

Ok well this is sad I'm gonna go to WingStop

You are addicted to disappointment.

[ten ocho recon scout]

3 hours ago, Lhalo said:

The Angels are the Meg Ryan of baseball. 

And it's like when Goose died in Top Gun right now.

But I also picture Ohtani here telling Arte to take him to the playoffs or lose him forever.

[Spirit]

12 hours ago, Pancake Bear said:

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.

 

Oh, let him be.  He couldn't even grasp the concept that the ownership would be in lieu of the $680 million owed, not in addition to.  And "25%-ish" was just a random number.  Could be 5% or 10% or something else. 

 

[ten ocho recon scout]

To clarify, what's the $40 million number I'm reading? The Dodgers are paying him $2. Year, but for luxury tax purposes does he count as $40 something?

[Dtwncbad]

42 minutes ago, ten ocho recon scout said:

To clarify, what's the $40 million number I'm reading? The Dodgers are paying him $2. Year, but for luxury tax purposes does he count as $40 something?

They are essentially calculating the net present annual value of the sum of the $2m actually paid and the amount deferred. 

[gotbeer]

51 minutes ago, ten ocho recon scout said:

To clarify, what's the $40 million number I'm reading? The Dodgers are paying him $2. Year, but for luxury tax purposes does he count as $40 something?

Yeah, I was going to post it.   According to Cots:

https://docs.google.com/spreadsheets/d/1YX_O-LZuYfE9n8u3s3EICLAjp1hixwovsrTIJaaAXng/edit#gid=1520401900

Shohei will count $46 million and change towards to CBT.  CBS Sports breaks it down a bit.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-how-dodgers-are-using-mlb-cba-to-their-advantage-by-waiting-to-pay-680m/

[mmc]

So many asshat Angels fans pissed at Ohtani on Twitter after hearing the details of his contract, lmfao.  Not his fault he’s way more serious about winning than our owner

[totdprods]

I’m glad I don’t live in SoCal. Being from Texas, I’m not nearly as upset about him signing cross-town (other than the fact he didn’t sign with the Angels) so feeling for y’all Dodger haters.

I’m bummed because Ohtani was entertaining even if the Angels were not. Losing was more palatable knowing I was watching something that happens once a century. Would’ve warmly welcomed him back, but do think that contract, regardless of deferrals, is gonna hurt at some point and I’m happy I won’t see Ohtani start to age and struggle (and ultimately receive fan grumbling) as an Angel. 

So begins the… O’Hoppe era?

[T.G.]

22 minutes ago, mmc said:

So many asshat Angels fans pissed at Ohtani on Twitter after hearing the details of his contract, lmfao.  Not his fault he’s way more serious about winning than our owner

Maybe you should spend less time on Twitter. Not trying to be a jerk here.  I'm serious.  I know we all benefit from you being on Twitter and sharing the latest news, but dude... it's okay to not look at that stuff so much.

[Fake Chow]

30 minutes ago, totdprods said:

I’m glad I don’t live in SoCal. Being from Texas, I’m not nearly as upset about him signing cross-town (other than the fact he didn’t sign with the Angels) so feeling for y’all Dodger haters.

I’m bummed because Ohtani was entertaining even if the Angels were not. Losing was more palatable knowing I was watching something that happens once a century. Would’ve warmly welcomed him back, but do think that contract, regardless of deferrals, is gonna hurt at some point and I’m happy I won’t see Ohtani start to age and struggle (and ultimately receive fan grumbling) as an Angel. 

So begins the… O’Hoppe era?

I live in Texas now as well.  Im glad I dont have to drive the freeways and see billboards with Ohtani in a Dodgers uni.  I do have to suffer through friends bringing up the Rangers winning the WS at least once a week.

[ten ocho recon scout]

Something that I've been kicking around in my head the last hour or so (among a bunch of other things).

It's already been said to death that we had 6 years to convince him to stay, and that's true. 

But I think more directly it was the last 2 years. This past year is obvious enough. But 2022 shouldn't be ignored 

2021 Ohtani becomes the biggest story in sports. Ohtani becomes an international sensation, and probably the most popular ballplayer since Griffey. 

You still had Trout and hope for Rendon.

And we proceeded to fill out the roster with guys like Jack Mayfield, and Gosselin, and Velasquez, and Lagares. 

I liked last offseason, and was excited about Renfroe in particular, and liked that we added depth. But we again stayed away from true impact guys. 

I think if you're Ohtani, after the previous 4 seasons, knowing that if Arte wasn't going to go all in with him at his peak, he was never going to.

It was probably pretty clear to him that he would be the next Trout, with Trout the new Pujols, and making the next 6 years like the 6 before it 

[jsnpritchett]

[Dtwncbad]

1 hour ago, T.G. said:

Maybe you should spend less time on Twitter. Not trying to be a jerk here.  I'm serious.  I know we all benefit from you being on Twitter and sharing the latest news, but dude... it's okay to not look at that stuff so much.

I spend exactly zero time on Twitter and I don’t feel like I miss anything at all.  

[johndw52]

Failed but true pioneers ! Very curious to hear what these two guys would say (RIP DD).

[Jay]

I kind of hope Ohtani sucks going forward. Is that bad?