6:16pm: The conditional opt-out applies to controlling owner Mark Walter and director of baseball operations Andrew Friedman. With reporting from Beth Harris and Ronald Blum of The Associated Press. If either Walter or Friedman leave, Ohtani will have the possibility to opt out. ESPN’s Alden Gonzalez Tweet it takes effect on end If it’s a season in which Walter or Friedman leave, there’s no chance of Ohtani opting out midway through the season.
Nevertheless, this is noteworthy material, especially in Friedman’s case. The front office leader is not in immediate jeopardy based on the team’s excellent performance over the next 10 years, but tying his contract status to the team’s Most Valuable Player status for the next 10 years. This is a bold move on the part of the owner. Friedman signed an undisclosed contract extension in November 2019. It’s not clear if he signed a subsequent contract, but it’s hard to imagine him leaving the organization anytime soon.
Another note from the Associated Press: The Dodgers have already announced the deal, but have not yet sought formal approval from MLB. As of Wednesday night, the deal is still in the form of a memorandum of understanding between Ohtani and the Dodgers.
5:32pm: Shohei OtaniThe Dodgers’ landmark contract has sparked endless discussion, debate and criticism because it includes an unprecedented range of deferrals, but that’s not the only attractive wrinkle in the 10-year deal.
Sports Illustrated’s Tom Verducci reports. The contract includes language that “ensures the club fulfills its promise to use the savings he has made to build a competitive team around him.” Ohtani’s agent, Nez Valero of CAA Sports, told Verducci that Ohtani asked the club early in the free agency process to provide the club with a majority of his salary or He asked if it was possible to postpone the full amount.
As far as we at MLBTR know, this is the first clause in any player contract. Further details of this provision and how it will be enforced remain unclear. The Dodgers are reportedly pursuing the following trades: tyler glasnow and Manuel Margotand recent meetings Yoshinobu YamamotoHowever, it does seem to indicate that the team is actually taking steps to meet that condition.
According to Verducci, the luxury tax burden associated with Ohtani’s contract is $46.06 million, roughly in line with expectations at the start of free agency. However, the way the deal was announced caused significant criticism. It’s natural to wonder if the deal would have drawn the same backlash as the originally announced $700 million deal if it had been announced as a 10-year, $460 million deferral with interest…later. It was reported that 97% were postponed.
While the original $700 million figure seems appropriate in a recruiting pitch for future CAA clients, the league’s net present value valuation of approximately $460 million is a whole different story. MLBPA’s valuation is still a little low.John Heyman of the New York Post Tweet The association values the contract at $437,830,563, but says the luxury tax liability is based on the league’s calculations.
There was a lot of talk about this contract as a way to take advantage of the luxury tax system, but the $46.06 million CBT hit is in line with the league’s contract valuation. If anything, this contract is less about avoiding the luxury tax and more about artificially reducing the team’s actual final salary from 2024-33.
The unprecedented contract language goes beyond competitive team clauses.The Athletic’s Ken Rosenthal report The contract states: “In the event of certain changes in Dodgers personnel, the player may opt out of the contract at the end of the season in which the changes occur.”
The contract does not specify who could prompt Ohtani to terminate the contract. Considering the huge amount of deferred money, Ohtani will be paid just $2 million a year from 2024 to 2033, and the remaining $680 million from 2034 to 2043, but the deal allows for that. Unless there is a clause to do so, it would be difficult for Ohtani to opt out under any circumstances. Some of these deferrals are paid in conjunction with opt-outs.
If Ohtani is able to return to the mound in 2025, he would re-establish himself as a viable top-of-the-rotation starter and earn more than his current contract’s net present value of approximately $460 million. It is technically possible to obtain even greater earning power. But even if he was only paid about 1-2% of his total salary by the time he had the theoretical opportunity to opt out, it would still be difficult to break his contract.
Again, Ohtani, in his first move to MLB (and to a lesser extent due to the surprising nature of the current postponement), has shown that money is not necessarily the top priority in any contract. I showed it. He also reportedly earns as much as $50 million a year in publicity and other marketing opportunities, leaving a surprising portion of his record deal on the table to pursue a return to free agency. The idea of leaving is not. as It’s outlandish, as it is for many other players.
News of an unprecedented out clause in Ohtani’s contract (as we all know) will lead to a lot of speculation. Fans on social media are already wondering about a change in ownership, a change in front office, a change in management, or perhaps even a trade for a star teammate, such as: mookie betts and freddie freeman. However, since the details of the personnel changes are not clearly stated in the contract itself, there is no way for Ohtani to know the specific details of the personnel changes that would trigger this right. This clause is further evidence of the lengths the Dodgers, and likely other teams, are willing to go to secure the generational talent of a two-way star.
Giants President of Baseball Operations Farhan Zaidi has already said that the terms of Ohtani’s contract with the Dodgers were proposed by Ohtani and his agent, and that the Giants were comfortable virtually matching those terms. ing. Presumably, if Ohtani’s camp included investment of current savings and a conditional out clause in the terms of his contract with the Dodgers, those elements could also be included in negotiations with the Giants, Blue Jays, and other finalists. It would have been.