This forum is for talking about non-music-related stuff that the DBT fanbase might be interested in. This is not the place for inside jokes and BS. Take that crap to some other board.
I don't know if there's a way to truly comprehend the magnitude of Ohtani's contract, but let's give it a try. ICYMI, the contract is for $700 Million over 10 years, or $70 Million/year.
So that's One Million Three Hundred Forty Thousand Dollars (and some change) EVERY WEEK for 10 years, or 520 weeks. IOW if an executive is considered highly paid at $1 Million/year, Ohtani makes more than that in a week, or more than 52 times what that rather wealthy executive makes.
Assuming 45% in federal, state and local taxes, Ohtani will make $740,000 per week after taxes, which by itself, one week, after taxes, is enough to put him comfortably in the annual top 1% of all taxpayers.
If you're an entrepreneur who started a company that now does, say, $100 Million/year in sales with solid profits, cash flow and continuing growth prospects, your company might be worth, say, $300 Million and by the time it reaches that size you would be lucky to own, say, 25% of it, so you could cash out for about $75 Million, or slightly more than one year's worth of Ohtani's contract.
IOW, that's a staggering, incomprehensible shit ton of money. Ye gads!
I express no opinion as to whether Ohtani is "worth" that much but in strict economic terms, he's worth what a willing arm's length buyer is willing to pay, so at least by that definition, he's worth it. SMH at the sheer magnitude of it all.
What used to be is gone and what ought to be ought not to be so hard
I don't know if there's a way to truly comprehend the magnitude of Ohtani's contract, but let's give it a try. ICYMI, the contract is for $700 Million over 10 years, or $70 Million/year.
So that's One Million Three Hundred Forty Thousand Dollars (and some change) EVERY WEEK for 10 years, or 520 weeks. IOW if an executive is considered highly paid at $1 Million/year, Ohtani makes more than that in a week, or more than 52 times what that rather wealthy executive makes.
Assuming 45% in federal, state and local taxes, Ohtani will make $740,000 per week after taxes, which by itself, one week, after taxes, is enough to put him comfortably in the annual top 1% of all taxpayers.
If you're an entrepreneur who started a company that now does, say, $100 Million/year in sales with solid profits, cash flow and continuing growth prospects, your company might be worth, say, $300 Million and by the time it reaches that size you would be lucky to own, say, 25% of it, so you could cash out for about $75 Million, or slightly more than one year's worth of Ohtani's contract.
IOW, that's a staggering, incomprehensible shit ton of money. Ye gads!
I express no opinion as to whether Ohtani is "worth" that much but in strict economic terms, he's worth what a willing arm's length buyer is willing to pay, so at least by that definition, he's worth it. SMH at the sheer magnitude of it all.
A curveball for you: a lot of the money is deferred. I don't know how much but the report I read said it was significant. Ohtani agreed to do that so that the team could have money for other players & to help the Dodgers with the luxury tax.
A curveball for you: a lot of the money is deferred. I don't know how much but the report I read said it was significant. Ohtani agreed to do that so that the team could have money for other players & to help the Dodgers with the luxury tax.
Short answer; You're right. Medium length answer: Even if the contract was strictly prorated at $70M/yr for 10 years one should technically discount it to present value to determine its "true" value, which no matter how you calculate it would be significantly less than the apparent $700M face value. But since that's true of all long term contracts and because the sports pages are still not the business pages even though it gets harder and harder to tell them apart we generally talk about these kinds of mega contracts in terms of gross or face value and relative to each other it pretty much works out for discussion purposes. Long answer: Yep it's definitely complicated and if this were a biz school class and not a music fan website we could spend hours calculating the true value of the contract to both sides and trying to figure out whether the Dodgers have left themselves enough flexibility to compete by fielding a full team geared to a 162 game + playoffs season, but I don't know that that's really necessary here. The fact is that it's a whole lot of money, a staggering amount of money, an historic amount of money no matter how you slice it and that's really all i was trying to say.
What used to be is gone and what ought to be ought not to be so hard
Speaking of whether Ohtani's worth the big bucks, this from the Athletic:
"Ohtani’s real value is nearly incomprehensible. As Jayson Stark is wont to do, he dug up some incredible numbers to illustrate how great Ohtani is. My biggest takeaway: In modern terms, Ohtani is essentially Aaron Judge and Gerrit Cole ($684 million combined contracts) put together, and younger than both. If we judge by age, Ohtani is Mickey Mantle and Pedro Martinez through his age-28 season. Just … dang."
Dang indeed.
What used to be is gone and what ought to be ought not to be so hard
Keep seeing articles that claim Dodgers may recoup the entire amount in just a few seasons due to merch and all sorts of international rights I don’t fully understand, well before all the deferments will have been paid
Son, this ain't a dream no more, it's the real thing
Richie Sexson?! Duane Kuiper?! You are way outta my league that's for sure.
Duane Kuiper has been doing Giants broadcasting with Mike Krukow for decades. That alone has exposed me to all kinds of stats/facts about the two of them. Same in general for guys who have played for Giants in past 30 years. But Kuiper was also around in my prime childhood years of baseball fanaticism & card collecting. Average/below average dudes like him from the 70s are great for getting low scores.
Bottom line, there is a lot of knowledge involved but being of a certain age helps considerably
Son, this ain't a dream no more, it's the real thing
I was really kicking ass on today’s Immaculate Grid (#259) until I go to the 30+ saves category. Got all three correct but rarity scores were huge makes sense, the status of the dedicated closer as “a thing” is relatively recent when you consider the overall length of the game’s history
Son, this ain't a dream no more, it's the real thing