The issue isn't the expense, it's the revenue. As quoted here:
âThis may be close to an $800 million to $1 billion gain for the Dodgers over a decade,â
The world is A) full of money, and B) people make it in ways never imagined by anyone until very recently. Comparing Ohtani's contract with A-Rods $250M contract only 23 years ago is useless.
Sports are pure entertainment now...not athletics. Jerry Jones paid $150M to own the Cowboys in 1989. Pretty soon, they'll be worth $10B. That's roughly a 12% annual compound return. Ask Warren Buffett.. âMy wealth has come from a combination of living in America, some lucky genes, and compound interest.â
The $1B isn't an expense... it's a way to maintain brand value while the underlying asset just grows....and grows... at a much lower net cost than advertised. If the first quote is correct...Ohtani may be the least expensive signing this offseason.
Paywalled link above - here's a clean one.
Curious to see who's going to be bidding for Cody Bellinger now - Blue Jays, Giants, Mets...? Maybe he'll stay with the Cubs.
The issue isn't the expense, it's the revenue. As quoted here:
âThis may be close to an $800 million to $1 billion gain for the Dodgers over a decade,â
The world is A) full of money, and B) people make it in ways never imagined by anyone until very recently. Comparing Ohtani's contract with A-Rods $250M contract only 23 years ago is useless.
Sports are pure entertainment now...not athletics. Jerry Jones paid $150M to own the Cowboys in 1989. Pretty soon, they'll be worth $10B. That's roughly a 12% annual compound return. Ask Warren Buffett.. âMy wealth has come from a combination of living in America, some lucky genes, and compound interest.â
The $1B isn't an expense... it's a way to maintain brand value while the underlying asset just grows....and grows... at a much lower net cost than advertised. If the first quote is correct...Ohtani may be the least expensive signing this offseason.
I will absolutely go to Denver this summer to see a Dodgers game. They're absolutely loaded with players I want to be able to say that I saw play.
Now to go see what McCovey Chronicles has to say ââ oh they only updated the article that said he'd turned down the Giants...
In the latest humiliation of the San Francisco Giants, the next best free agent on the market, starting pitcher Yoshinobu Yamamoto â formerly of the Orix Buffaloes of the Nippon Professional Baseball and soon to be either a member of a New York team or the Dodger â has informed our favorite baseball team that they suck and are losers.
The bad news is they're poised to again dominate the NL West so the only joy for the rest of us will be seeing them collapse in the early rounds, and/or beating the snot out of them in individual series. At LA.
In honor of its value and long-term payments, maybe December 1 will become Shohei Day. They can pay him $5M or $10M a year until 2065...following the Bobby Bonilla (July 1) model. Interest rates are high...the math would favor Shohei.
I wonder in terms of just marketing Ohtani (jerseys, bobble-heads, hats, etc.), how much money the Dodgers organization will take in - perhaps even before the season starts.
Much of the contract is deferred so the Dodgers will be able to pay other players (for a while).
In honor of its value and long-term payments, maybe December 1 will become Shohei Day. They can pay him $5M or $10M a year until 2065...following the Bobby Bonilla (July 1) model. Interest rates are high...the math would favor Shohei.
Location: Around My Corner... and Up Yours Gender:
Posted:
Dec 10, 2023 - 8:57am
Proclivities wrote:
Well, it apparently makes sense to the Dodgers, and really there are no guarantees for any athletes, but he is 29 years old. I don't know what offers the Blue Jays, Mets, Cubs, and other teams made for him, but I think part of it is that he wants to play on the west coast. As far as having a contending team - the Dodgers did win 100 games last season, they just managed to disintegrate in the playoffs.
That bloated contract is also a windfall for the Calif state tax coffers!
It's hard to see how that contract will make sense. At $70 million/year, Ohtani's contract is larger than the 2024 total payroll for eight MLB teams or 47% of the average MLB payroll of 147,827,561. For one player.
Granted, he's been extraordinary but there's no guarantee he can sustain that success for five more years, let alone ten. Also, the Dodgers may have to go on a budget to build contending teams around Ohtani.
Not surprising John Henry and the Red Sox wouldn't bid that much for Ohtani. They don't overpay.
Well, it apparently makes sense to the Dodgers, and really there are no guarantees for any athletes, but he is 29 years old. I don't know what offers the Blue Jays, Mets, Cubs, and other teams made for him, but I think part of it is that he wants to play on the west coast. As far as having a contending team - the Dodgers did win 100 games last season, they just managed to disintegrate in the playoffs.
Location: On the edge of tomorrow looking back at yesterday. Gender:
Posted:
Dec 10, 2023 - 8:06am
kcar wrote:
It's hard to see how that contract will make sense. At $70 million/year, Ohtani's contract is larger than the 2024 total payroll for eight MLB teams or 47% of the average MLB payroll of 147,827,561. For one player.
Granted, he's been extraordinary but there's no guarantee he can sustain that success for five more years, let alone ten. Also, the Dodgers may have to go on a budget to build contending teams around Ohtani.
Not surprising John Henry and the Red Sox wouldn't bid that much for Ohtani. They don't overpay.
It's just amazing to think that Bryce Harper is in the middle of a 13-year, $330M contract. He's a STEAL at that number... which is why Boros is working on an "extension" (the current contract ends when he's 38...extending him is a favor).
It's hard to see how that contract will make sense. At $70 million/year, Ohtani's contract is larger than the 2024 total payroll for eight MLB teams or 47% of the average MLB payroll of 147,827,561. For one player.
Granted, he's been extraordinary but there's no guarantee he can sustain that success for five more years, let alone ten. Also, the Dodgers may have to go on a budget to build contending teams around Ohtani.
Not surprising John Henry and the Red Sox wouldn't bid that much for Ohtani. They don't overpay.
It's just amazing to think that Bryce Harper is in the middle of a 13-year, $330M contract. He's a STEAL at that number... which is why Boros is working on an "extension" (the current contract ends when he's 38...extending him is a favor).
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