They completely ridicule the “luxury tax” system, which was created to promote balanced development of the league with 2 million dollars a year.

Ryu Hyun-jin signed a four-year, 80-million-dollar contract with the Toronto Blue Jays in 2020. It costs 20 million dollars per year. In terms of annual average, Ohtani is one-tenth that of Ryu Hyun-jin.

The U.S. media “USA Today” reported on the 12th (Korea time) that Shohei Otani signed a 10-year, $700 million contract with the Dodgers, but suspended the payment of $680 million (about 894 billion won).

USA Today explained, “According to two people with direct knowledge of the contract, Ohtani will receive only $2 million a year for the next 10 years. The remaining $680 million will be paid interest-free from 2034 to 2043.

Through this expedient arrangement, Ohtani and Dodgers are “win-win” for each other. Dodgers will be able to recruit more expensive players by reducing payrolls (total annual salary). Ohtani can avoid California’s notorious income tax if he moves to another state after retirement. Personally, it makes sense if it’s a strategy to save taxes. However, this is a selfish plan that lightly ignores the purpose of introducing the luxury tax.

According to FanGraphs, Ohtani’s contract size is calculated at 460,814,765 U.S. dollars in value by applying a 4 percent discount rate. With this, the Dodgers has three MVP superstars, including Mookie Betts and Freddie Freeman and Ohtani, without worrying about luxury taxes. This was, of course, possible because Ohtani earned an additional 50 million dollars (about 66 billion won) per year from sponsorship funds.

CBS Sports said, “There is no limit to the rate of moratorium on payments. The percentage of moratoriums in Ohtani’s contract is unprecedented. Ohtani has pushed back more money than any other player’s annual salary for one season every year. The Dodgers is now able to be much more agile in avoiding luxury tax penalties.” 안전놀이터

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