quote:

ORIGINAL: David Levine

Ohtani's contract includes "unprecedented deferrals," according to MLB.com, and the deferrals were supposedly Ohtani's idea. He wanted to lower his competitive balance tax number and give the Dodgers more freedom to spend on the team around him. The majority of Ohtani's salary is deferred. The exact terms of the deferrals are unknown at this time.

"(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he wants to win," a source told MLB.com.

No player in the sport generates revenue like Ohtani. He sells tickets and jerseys, and opens the door to new Japanese sponsors and fans. According to the Los Angeles Times, Ohtani made the Angels $10 million to $20 million a year in advertising, marketing, and whatnot. The Dodgers, a more global brand that outdrew the Angels by nearly 15,000 fans per game in 2023, figure to make substantially more in Ohtani-related revenue. There's a reason they invested $700 million in him. They expect him to generate multitudes more for them.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-opt-outs-everything-to-know-about-the-record-700-million-dodgers-deal/

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

Ohtani's contract includes "unprecedented deferrals," according to MLB.com, and the deferrals were supposedly Ohtani's idea. He wanted to lower his competitive balance tax number and give the Dodgers more freedom to spend on the team around him. The majority of Ohtani's salary is deferred. The exact terms of the deferrals are unknown at this time.

"(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he wants to win," a source told MLB.com.

No player in the sport generates revenue like Ohtani. He sells tickets and jerseys, and opens the door to new Japanese sponsors and fans. According to the Los Angeles Times, Ohtani made the Angels $10 million to $20 million a year in advertising, marketing, and whatnot. The Dodgers, a more global brand that outdrew the Angels by nearly 15,000 fans per game in 2023, figure to make substantially more in Ohtani-related revenue. There's a reason they invested $700 million in him. They expect him to generate multitudes more for them.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-opt-outs-everything-to-know-about-the-record-700-million-dodgers-deal/

That's an illegal contract.

quote:

ORIGINAL: Trekgeekscott

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

Ohtani's contract includes "unprecedented deferrals," according to MLB.com, and the deferrals were supposedly Ohtani's idea. He wanted to lower his competitive balance tax number and give the Dodgers more freedom to spend on the team around him. The majority of Ohtani's salary is deferred. The exact terms of the deferrals are unknown at this time.

"(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he wants to win," a source told MLB.com.

No player in the sport generates revenue like Ohtani. He sells tickets and jerseys, and opens the door to new Japanese sponsors and fans. According to the Los Angeles Times, Ohtani made the Angels $10 million to $20 million a year in advertising, marketing, and whatnot. The Dodgers, a more global brand that outdrew the Angels by nearly 15,000 fans per game in 2023, figure to make substantially more in Ohtani-related revenue. There's a reason they invested $700 million in him. They expect him to generate multitudes more for them.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-opt-outs-everything-to-know-about-the-record-700-million-dodgers-deal/

That's an illegal contract.

How so? They specifically cleared it with the Commissioner's office. And the Union isn't going to protest a guy getting an average of 70 Million dollars a year.

quote:

ORIGINAL: David Levine

quote:

ORIGINAL: Trekgeekscott

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

Ohtani's contract includes "unprecedented deferrals," according to MLB.com, and the deferrals were supposedly Ohtani's idea. He wanted to lower his competitive balance tax number and give the Dodgers more freedom to spend on the team around him. The majority of Ohtani's salary is deferred. The exact terms of the deferrals are unknown at this time.

"(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he wants to win," a source told MLB.com.

No player in the sport generates revenue like Ohtani. He sells tickets and jerseys, and opens the door to new Japanese sponsors and fans. According to the Los Angeles Times, Ohtani made the Angels $10 million to $20 million a year in advertising, marketing, and whatnot. The Dodgers, a more global brand that outdrew the Angels by nearly 15,000 fans per game in 2023, figure to make substantially more in Ohtani-related revenue. There's a reason they invested $700 million in him. They expect him to generate multitudes more for them.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-opt-outs-everything-to-know-about-the-record-700-million-dodgers-deal/

That's an illegal contract.

How so? They specifically cleared it with the Commissioner's office. And the Union isn't going to protest a guy getting an average of 70 Million dollars a year.

Its also not even close to the first contract to do it. Just the biggest.

If MLB had a salary cap, then this could absolutely be seen as a way to circumvent it. But they don't - so its not.

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

quote:

ORIGINAL: Trekgeekscott

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

Ohtani's contract includes "unprecedented deferrals," according to MLB.com, and the deferrals were supposedly Ohtani's idea. He wanted to lower his competitive balance tax number and give the Dodgers more freedom to spend on the team around him. The majority of Ohtani's salary is deferred. The exact terms of the deferrals are unknown at this time.

"(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he wants to win," a source told MLB.com.

No player in the sport generates revenue like Ohtani. He sells tickets and jerseys, and opens the door to new Japanese sponsors and fans. According to the Los Angeles Times, Ohtani made the Angels $10 million to $20 million a year in advertising, marketing, and whatnot. The Dodgers, a more global brand that outdrew the Angels by nearly 15,000 fans per game in 2023, figure to make substantially more in Ohtani-related revenue. There's a reason they invested $700 million in him. They expect him to generate multitudes more for them.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-opt-outs-everything-to-know-about-the-record-700-million-dodgers-deal/

That's an illegal contract.

How so? They specifically cleared it with the Commissioner's office. And the Union isn't going to protest a guy getting an average of 70 Million dollars a year.

Its also not even close to the first contract to do it. Just the biggest.

If MLB had a salary cap, then this could absolutely be seen as a way to circumvent it. But they don't - so its not.

They are circumventing the luxury tax. Same thing.

quote:

ORIGINAL: David Levine

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

quote:

ORIGINAL: Trekgeekscott

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

Ohtani's contract includes "unprecedented deferrals," according to MLB.com, and the deferrals were supposedly Ohtani's idea. He wanted to lower his competitive balance tax number and give the Dodgers more freedom to spend on the team around him. The majority of Ohtani's salary is deferred. The exact terms of the deferrals are unknown at this time.

"(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he wants to win," a source told MLB.com.

No player in the sport generates revenue like Ohtani. He sells tickets and jerseys, and opens the door to new Japanese sponsors and fans. According to the Los Angeles Times, Ohtani made the Angels $10 million to $20 million a year in advertising, marketing, and whatnot. The Dodgers, a more global brand that outdrew the Angels by nearly 15,000 fans per game in 2023, figure to make substantially more in Ohtani-related revenue. There's a reason they invested $700 million in him. They expect him to generate multitudes more for them.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-opt-outs-everything-to-know-about-the-record-700-million-dodgers-deal/

That's an illegal contract.

How so? They specifically cleared it with the Commissioner's office. And the Union isn't going to protest a guy getting an average of 70 Million dollars a year.

Its also not even close to the first contract to do it. Just the biggest.

If MLB had a salary cap, then this could absolutely be seen as a way to circumvent it. But they don't - so its not.

They are circumventing the luxury tax. Same thing.

Except that's not illegal. So not the same thing at all.

Do you help your clients with creative, but legal, ways to pay less taxes?

quote:

ORIGINAL: Phil Riewer

quote:

ORIGINAL: David Levine

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

quote:

ORIGINAL: Trekgeekscott

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

Ohtani's contract includes "unprecedented deferrals," according to MLB.com, and the deferrals were supposedly Ohtani's idea. He wanted to lower his competitive balance tax number and give the Dodgers more freedom to spend on the team around him. The majority of Ohtani's salary is deferred. The exact terms of the deferrals are unknown at this time.

"(The deferrals are) primarily about allowing the team to be successful on the field, because above all else he wants to win," a source told MLB.com.

No player in the sport generates revenue like Ohtani. He sells tickets and jerseys, and opens the door to new Japanese sponsors and fans. According to the Los Angeles Times, Ohtani made the Angels $10 million to $20 million a year in advertising, marketing, and whatnot. The Dodgers, a more global brand that outdrew the Angels by nearly 15,000 fans per game in 2023, figure to make substantially more in Ohtani-related revenue. There's a reason they invested $700 million in him. They expect him to generate multitudes more for them.

https://www.cbssports.com/mlb/news/shohei-ohtani-contract-deferrals-opt-outs-everything-to-know-about-the-record-700-million-dodgers-deal/

That's an illegal contract.

How so? They specifically cleared it with the Commissioner's office. And the Union isn't going to protest a guy getting an average of 70 Million dollars a year.

Its also not even close to the first contract to do it. Just the biggest.

If MLB had a salary cap, then this could absolutely be seen as a way to circumvent it. But they don't - so its not.

They are circumventing the luxury tax. Same thing.

Except that's not illegal. So not the same thing at all.

Do you help your clients with creative, but legal, ways to pay less taxes?

Wasn't Bobby Bonilla still getting paid upto last year?

quote:

competitive balance tax payroll -- which typically uses the average annual value of contracts, in this case $70 million, but discounts deferred money

quote:

ORIGINAL: David Levine

Shohei Ohtani will defer $680M in deal with Dodgers, sources say

Shohei Ohtani's historic contract with the Los Angeles Dodgers will see him defer $68 million of his annual $70 million salary, sources familiar with the deal said Monday, significantly lowering his new team's payroll and potential tax burden.

Ohtani agreed on a 10-year, $700 million contract with the Dodgers on Saturday, by far the richest in the history of North American professional sports. A source said then that the majority of the contract would come in deferred money; under this structure, however, Ohtani is deferring more than 97% of his earnings. The deferred money -- totaling $680 million -- will be paid to Ohtani between 2034 and 2043, a source said.

The deferrals were Ohtani's idea, a source close to the situation said, motivated largely by the thought of helping the Dodgers sign other players but made easier by his massive off-the-field earnings. Ohtani is believed to make upwards of $45 million annually through endorsements, a source said, making him by far the most marketable player in Major League Baseball. The Los Angeles Angels were believed to make more than $20 million annually off that same marketability during his tenure there.

Ohtani's cost toward the Dodgers' competitive balance tax payroll -- which typically uses the average annual value of contracts, in this case $70 million, but discounts deferred money -- will be about $46 million after each season. That puts the combined cost of Ohtani, Freddie Freeman and Mookie Betts toward the CBT payroll at somewhere in the neighborhood of $100 million annually. The luxury-tax threshold sits at $237 million in 2024.

https://www.espn.com/mlb/story/_/id/39092632/shohei-ohtani-defer-680m-deal-dodgers-sources

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

Shohei Ohtani will defer $680M in deal with Dodgers, sources say

Shohei Ohtani's historic contract with the Los Angeles Dodgers will see him defer $68 million of his annual $70 million salary, sources familiar with the deal said Monday, significantly lowering his new team's payroll and potential tax burden.

Ohtani agreed on a 10-year, $700 million contract with the Dodgers on Saturday, by far the richest in the history of North American professional sports. A source said then that the majority of the contract would come in deferred money; under this structure, however, Ohtani is deferring more than 97% of his earnings. The deferred money -- totaling $680 million -- will be paid to Ohtani between 2034 and 2043, a source said.

The deferrals were Ohtani's idea, a source close to the situation said, motivated largely by the thought of helping the Dodgers sign other players but made easier by his massive off-the-field earnings. Ohtani is believed to make upwards of $45 million annually through endorsements, a source said, making him by far the most marketable player in Major League Baseball. The Los Angeles Angels were believed to make more than $20 million annually off that same marketability during his tenure there.

Ohtani's cost toward the Dodgers' competitive balance tax payroll -- which typically uses the average annual value of contracts, in this case $70 million, but discounts deferred money -- will be about $46 million after each season. That puts the combined cost of Ohtani, Freddie Freeman and Mookie Betts toward the CBT payroll at somewhere in the neighborhood of $100 million annually. The luxury-tax threshold sits at $237 million in 2024.

https://www.espn.com/mlb/story/_/id/39092632/shohei-ohtani-defer-680m-deal-dodgers-sources

Unprompted, Dustin also said it's illegal, and that was after I posted the same thing. And he's a lawyer. Ever heard of substance over form? That's what this is, so it's illegal.

quote:

ORIGINAL: David Levine

They chose to discount deferred money when they wrote, voted and approved the current CBA.

Thus its 100% legal.

You can't say apples are illegal because oranges are.

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

They chose to discount deferred money when they wrote, voted and approved the current CBA.

Thus its 100% legal.

You can't say apples are illegal because oranges are.

It's not legal just because the CBA says so. If a portion of the CBA is in violation of the law, then it's illegal.

I could write up an agreement that includes stealing a 12-pack of Pepsi from the Kwik Mart and giving it to me as part of the deal, and that contract is not going to hold up.

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

They chose to discount deferred money when they wrote, voted and approved the current CBA.

Thus its 100% legal.

You can't say apples are illegal because oranges are.

It's not legal just because the CBA says so. If a portion of the CBA is in violation of the law, then it's illegal.

I could write up an agreement that includes stealing a 12-pack of Pepsi from the Kwik Mart and giving it to me as part of the deal, and that contract is not going to hold up.

quote:

As another example, Max Scherzer signed a seven-year contract worth $210 million with the Nationals in 2015. That's $30 million per year, on average. However, Scherzer agreed to defer half his salary each year, which lowered the present day value to approximately $185 million. That lowered his annual CBT hit to $26.4 million or so.

Ohtani's new teammates Mookie Betts and Freddie Freeman both have substantial deferrals in their contracts with the Dodgers.

quote:

ORIGINAL: Phil Riewer

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

They chose to discount deferred money when they wrote, voted and approved the current CBA.

Thus its 100% legal.

You can't say apples are illegal because oranges are.

It's not legal just because the CBA says so. If a portion of the CBA is in violation of the law, then it's illegal.

I could write up an agreement that includes stealing a 12-pack of Pepsi from the Kwik Mart and giving it to me as part of the deal, and that contract is not going to hold up.

There isn't a salary cap in baseball.....that is why it is currently legal.

Teams in football void and add money to their future cap currently also (and there is a cap)---they circumvent the cap also by doing so.

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: Phil Riewer

quote:

ORIGINAL: twinsfan

quote:

ORIGINAL: David Levine

They chose to discount deferred money when they wrote, voted and approved the current CBA.

Thus its 100% legal.

You can't say apples are illegal because oranges are.

It's not legal just because the CBA says so. If a portion of the CBA is in violation of the law, then it's illegal.

I could write up an agreement that includes stealing a 12-pack of Pepsi from the Kwik Mart and giving it to me as part of the deal, and that contract is not going to hold up.

There isn't a salary cap in baseball.....that is why it is currently legal.

Teams in football void and add money to their future cap currently also (and there is a cap)---they circumvent the cap also by doing so.

In reality Ohtani is earning more than $2 million in 2024. So they are issuing an incorrect W-2 and Ohtani is underreporting his taxable income. So the substance over form doctrine kicks in.