Wow, that is a lot of Yen. I was hoping the Yankees would land him.
OT: Yamamoto to Dodgers 12 years, $325M
- Thread starter UMRU
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One billion $$ for two players, one of which has never thrown a pitch in MLB. What other team can afford this?
This is becoming like Alabama NIL vs. Rutgers NIL
This is becoming like Alabama NIL vs. Rutgers NIL
Will see if it results in even one ring. Dodgers have only won 3 titles since 1966. They’d kill to be Alabama!
Rob Manfred would’ve had Steve Cohen put in jail or even shot if he tried this. But it’s ok when the Dodgers circumvent the luxury tax.
The Dodgers aren't circumventing anything. They are playing within the rules, albeit creatively.
Ohtani signed a 10 year contract, and will be receiving a deferred annuity with a future value of $700M. MLB converts that into a 10 year immediate annuity, which has an annual value of about $46M. For the next 10 years, that $46M will be added to their luxury tax base.
In other words, they will be taxed on the actual economic value of the contract, not on the fictitious $700M.
How is that a problem?
They are within the rules which originally changed after Colangelo had some creative contracts with the Diamonbacks in the early 2000's. My guess is that this will trigger another future change in the CBT rules. Smaller market teams will likely want the total player compensation spread over the length of his actual contracted playing time.
Regardless, none of what happens with the future CBT rules apply to this situation. Dodgers are within the current rules but with a boat load of future deferred payroll liabilities on their books.
As for the Yamamoto contract, 12 years for a pitcher at any age is insane IMO.
Cohen caught hell for simply paying for Scherzer, Verlander and the taxes the last two years. Even had their draft pick drop 10 spots because of this. Imagine if he even thought of deferring salaries like the Dodgers did, even within the rules.
Dodgers outplayed everyone, including the rules...what can you say.
If this was business- Cohen would have fired Stearn on this. Dodgers set this all up, sort of live a vendor who writes the RFP for a big bid- they already had Yamamoto as soon as SO signed. Told him to give them last look.
Stearn/Cohen/Cashman/Steinbrenner all look like fools.
And the league- they got schooled as well- Dodgers found a way to spend a billion $$$ on 3 players and barely touch the cap. The S.O. contract never should have been able to fit into a loophole.
If this was business- Cohen would have fired Stearn on this. Dodgers set this all up, sort of live a vendor who writes the RFP for a big bid- they already had Yamamoto as soon as SO signed. Told him to give them last look.
Stearn/Cohen/Cashman/Steinbrenner all look like fools.
And the league- they got schooled as well- Dodgers found a way to spend a billion $$$ on 3 players and barely touch the cap. The S.O. contract never should have been able to fit into a loophole.
Now why exactly should Cohen fire Stearns?
The ONLY possible rationale is that Stearns should somehow (please explain how) have known that Yamamoto was a lock for the Dodgers, and should have ignored him and focused harder on Plan B guys like Eduardo Rodriguez. Let's say Stearns had done that. What would have been the fan reaction? What would have been this board's reaction?
Also, your statement that the Dodgers "barely touched the cap" is just wrong. As I think everyone on this board knows by now, Ohtani's annual cap hit is $46M. Yamamoto and Glasnow are each at $27M. That's $100M added to the cap in three players.
To paraphrase Solazzo in The Godfather, "Don Corleone, if you think a $100 million annual cap hit is barely a touch, 'te salud'!"
One last thought on Yamamoto which may sound like sour grapes, and maybe is, but I think is irrefutable: Yamamoto is just a prospect until proven otherwise. Maybe the most promising prospect of our generation, but still just a prospect.
Ahhh- I started by saying "if this was business- and also a slight reference to Bobby Axelrod....A guy like this- in this type of worth and fast play in business- never get's played without a fall guy.
In baseball- not sure we could have done anything...But- Stearns needs to be the guy that is protecting, not only the business but also Steve's reputation.
It was more a play on Billions- but seriously- what is the lifespan of an executive in Cohen's world if he does no close.
Agree 100%. This was already done when the Dodgers signed Ohtani and the particulars of the contract. They just strung the Yankees and Mets along.
Cohen and small-market Stearns have a lot of catching up to do. Hopefully, the open checkbook pays some dividends but it’s been a disaster so far.
Rightfully so and if the Dodgers didn't match it he would be a member of the Mets.
I wonder if the Mets contract had similar opt out years. It sounds like that was an important part for him.
If he wanted the max his money, he would have gone to the Yankees who offered more per year than the Mets/Dodgers offers.
It's not even the deferment that pisses me off, it's that it is interest-free. How does that benefit the player? And don't say "it allows the team to offer more money in the contract" that's b.s. It's like these deals aren't being done at arms-length.
Something is seriously out of whack with all this money being thrown around. Three years go the notion of paying two players 1B combined would have been seen as ludicrous. I remember when the price tag for MetLife stadium (1B) was a shocker now teams are paying that for "renovations" to their existing stadiums. Bills new stadium costing at least 1.5B ( some estimates put it at 1.7B) and there's nothing special about it
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One last thought on Yamamoto which may sound like sour grapes, and maybe is, but I think is irrefutable: Yamamoto is just a prospect until proven otherwise. Maybe the most promising prospect of our generation, but still just a prospect. What is he 5'9"? 12 Years? No Thank You.
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Yes, as a Met fan I wanted Yamamoto badly. Not my money, what do I care.
But 12 years to any pitcher nowadays is insane.
And 12 years WITH TWO OPT-OUTS is doubly insane. A 12 year contract is a big bet. You're accepting a ****-ton of risk in exchange for the hope of short and long term reward. But by giving opt-outs after five and eight years, you're giving away the long term upside! While retaining ALL the risk. Doesn't make much sense to me but what do I know.
If in fact the two opt-outs were the deal breaker (which I doubt), then good for the Mets for acting with some degree of sanity.
But 12 years to any pitcher nowadays is insane.
And 12 years WITH TWO OPT-OUTS is doubly insane. A 12 year contract is a big bet. You're accepting a ****-ton of risk in exchange for the hope of short and long term reward. But by giving opt-outs after five and eight years, you're giving away the long term upside! While retaining ALL the risk. Doesn't make much sense to me but what do I know.
If in fact the two opt-outs were the deal breaker (which I doubt), then good for the Mets for acting with some degree of sanity.
Also agree with this- Wanted Yamamoto but the contract the Dodgers gave him is a little crazy but the SO deal gave them that flexibility.