The Los Angeles Dodgers have become our favorite No Baselines team with their out-of-the box approach to management.
The front office has demonstrated an extraordinary level of creativity and financial acumen with their groundbreaking contract for Shohei Ohtani. The 10-year, $700 million deal is structured in a way that pushes the boundaries of conventional player contracts, with an unprecedented $680 million in deferred payments. This innovative approach allows Ohtani to receive just $2 million annually during his playing years from 2024-2033, with the bulk of his earnings paid out in equal installments from 2034-2043. By structuring the contract in this manner, the Dodgers have not only maintained short-term financial flexibility but also potentially enabled Ohtani to save an estimated $90-100 million in state taxes.
We look forward to see what happens in October. For more background on the creative contract, please read this NYTimes article.
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