Why Shohei Ohtani’s Contract Structure Is Not A Luxury Tax Dodge ...Middle East

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Why Shohei Ohtani’s Contract Structure Is Not A Luxury Tax Dodge
Earlier today, we learned that Shohei Ohtani’s $700MM contract with the Dodgers has a stunning deferral structure: he’ll earn a mere $2MM in each of the ten seasons he’s agreed to play baseball for the club, and then $68MM per year from 2034-43. Based on what I’ve seen on social media tonight, a lot of baseball fans think the purpose of these deferrals is for the Dodgers to “dodge” the competitive balance tax (yes, t-shirts are already being drawn up).  Here’s why that’s wrong. The collective bargaining agreement has a section for calculating the CBT hit for a contract that includes deferred money.  According to reports, that calculation works out to a $46MM average annual value and accompan

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