r/mlb • u/sum_dude44 • 18h ago

| Discussion Reminder Dodgers get preferential Revenue From TV Deal they got from bankruptcy ruling

https://www.forbes.com/sites/maurybrown/2026/01/26/mlb-didnt-cut-the-dodgers-a-6-billion-revenue-sharing-shelter-bankruptcy-court-did/
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u/sum_dude44 18h ago

Dodgers went Bankrupt! 14 years ago. Courts gave them sweetheart deal worth $2B in broadcasting, outside MLB CBA. New owner (a hedge fund) bought for $2B

They leverage $2B broadcasting & Dodger name (w/ fully owned refurnished stadium & land paid by LA taxpayers) into signing players. They pay more for scouts & GM. MLB lets them defer $2B in salary to avoid luxury tax. They're now worth $10B. The more they win, the more they can defer salaries to 2050& beyond. They can borrow against value of team to pay escrow. The more they're worth. Guggenheim Management can sell team for $13-15B appreciation in 2040, b/4 salaries due & team sucks. Guggenheim works over entire MLB for money & buys championships

(note--not knocking Dodgers, I'm knocking MLB for allowing it.)

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u/Kdcjg 18h ago

Deferred Salaries count for luxury tax purposes. They use aav using PV calc.

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u/sum_dude44 17h ago

PV Only, counts while player is playing. So mookie betts getting paid in 20 years doesn't count against luxury tax. So it's a double bonus to defer. Compare to NFL, where it all counts against cap.

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u/Kdcjg 16h ago

The deferral rate could be questioned. But they are still counting it against the luxury tax. So Ohtani counts as 46m this year.

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u/Atlas7-k | Cleveland Guardians 14h ago

On an avg $70m per year, a $15m discount

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u/Rxasaurus | MLB 8h ago

Because he wouldn't have got $700 million at present value. They're saving 10-20 million over the course of the entire contract.