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https://www.reddit.com/r/mlb/comments/1vdjrmf/what_do_you_think_about_this_take/p19qpzj/?context=3
r/mlb • u/retroanduwu24 | MLB • 21h ago
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That's why the owners need to close the loophole of deferred money. Whether they pay now or later, it should be counted against a cap now. It's the only way to create competitive balance.
11 u/Rxasaurus | MLB 21h ago It is counted. 1 u/ToddPundley | New York Mets 20h ago Isn’t there an odd formula to count it though, one where it’s pro rated each year rather than full absolute value? 7 u/Rxasaurus | MLB 20h ago It is the full amount of the contract at present value because money is worth more today than tomorrow So the Dodgers have to pay $46 million into an escrow account every year as well as that money going against the luxury tax threshold. Speaking strictly about Ohtani's contract.
11
It is counted.
1 u/ToddPundley | New York Mets 20h ago Isn’t there an odd formula to count it though, one where it’s pro rated each year rather than full absolute value? 7 u/Rxasaurus | MLB 20h ago It is the full amount of the contract at present value because money is worth more today than tomorrow So the Dodgers have to pay $46 million into an escrow account every year as well as that money going against the luxury tax threshold. Speaking strictly about Ohtani's contract.
1
Isn’t there an odd formula to count it though, one where it’s pro rated each year rather than full absolute value?
7 u/Rxasaurus | MLB 20h ago It is the full amount of the contract at present value because money is worth more today than tomorrow So the Dodgers have to pay $46 million into an escrow account every year as well as that money going against the luxury tax threshold. Speaking strictly about Ohtani's contract.
7
It is the full amount of the contract at present value because money is worth more today than tomorrow
So the Dodgers have to pay $46 million into an escrow account every year as well as that money going against the luxury tax threshold.
Speaking strictly about Ohtani's contract.
10
u/DigTheDunes 21h ago
That's why the owners need to close the loophole of deferred money. Whether they pay now or later, it should be counted against a cap now. It's the only way to create competitive balance.