On Thursday, we finally got something approaching an official account of the biggest story in baseball. The details are, somehow, outrageous and astounding, while still presenting a version of events that follows the least salacious plausible narrative.

According to an affidavit filed by an IRS investigator in federal court, Ippei Mizuhara — until recently Shohei Ohtani’s interpreter, confidant, and right-hand man — stole some $16 million from the Dodgers superstar to cover sports gambling losses. It makes the case that the 39-year-old Mizuhara should be arrested for, and charged with, bank fraud. The day before the affidavit began circulating publicly, The New York Times reported that Mizuhara is negotiating a guilty plea to that charge, which carries a statutory maximum of 30 years’ jail time. Read the rest of this entry »

We’ve known for almost a year that the Oakland Athletics are moving to Las Vegas. Eventually. Someday. And every excruciating step of that process has dominated the news.

Team and city waged a years-long cold war over the construction of a new Bay Area stadium, plans for which finally fell through last year. That tipped off 12 months of open conflict with fans and government in both Oakland and Nevada, stemming from the inconvenient reality that even if the club could finance a stadium in Sin City, it would not be ready before the team’s lease at the Coliseum expired at the end of the 2024 season.

After mooting various solutions, including a stopover in Salt Lake City or the world’s most awkward stadium lease extension, John Fisher’s club is headed for Sutter Health Park in Sacramento, currently home of the San Francisco Giants’ Triple-A affiliate, the Sacramento River Cats.

The team revealed the news on Twitter, with replies disabled. Read the rest of this entry »

Even with an extra day of February, we’re entering the month of March with several key free agents un-signed. Our no. 5, no. 6, and no. 7-ranked free agents — Blake Snell, Jordan Montgomery, and Matt Chapman — are all headed for a gap year. So are various other useful veterans, like Brandon Belt, J.D. Martinez, and Michael Lorenzen.

It’s not ideal. The teams want to have their rosters set, the players don’t want to miss camp if they can avoid it. It’s not great from a content creation/publicity perspective for either the league or the media. Myself included; when we called dibs on writing up the various big free agent signings last fall, I picked Snell and Monty, and I’ve been jumping out of my skin at every Slack notification I’ve gotten since. I haven’t slept in four months!

And the bigwigs at MLB are getting tetchy about it. Two weeks ago, commissioner Rob Manfred told reporters that the league had proposed a free agent signing period to the union in the last round of CBA talks, with the goal of creating “two weeks of flurried activity” that would dominate SportsCenter and settle everyone’s offseason quickly. Manfred’s argument is that concentrating the action would grab baseball much-needed publicity. Publicity leads to attention, and attention to money. Everyone wins. Yesterday, ESPN’s Alden Gonzalez released a reported feature on the idea, including the blindingly obvious reasons why the union left Manfred on read.

It’s a bird! It’s a plane! It’s a trial balloon! Read the rest of this entry »

Let’s start with a disclaimer: I don’t expect this to happen. If a Scott Boras client turned down a reported $150 million over six years from the Yankees, he’s not going to settle for a one-year contract. Blake Snell is 31, coming off a Cy Young season, with a less-than-encouraging track record for durability. He should ring the bell now; he’s never going to be more valuable. And he probably will. There will be a lucrative long-term deal for him somewhere, at a high enough dollar figure that Boras can sell it as some kind of record.

But it’s the last proper week of the offseason, and the reigning NL Cy Young winner is still out of work. So let’s speculate a little. More than speculate: Let’s imagine what would happen if Snell and Boras decided to throw caution to the wind and try to max out on a one-year contract. Read the rest of this entry »

Under John Angelos, son of Peter Angelos, who took the team to the verge of the World Series in the 1990s, the Baltimore Orioles have been hamstrung by a lack of investment, uncertainty over potential relocation, and a lawsuit over control of the family fortune that contains allegations straight out of the Book of Genesis. A 100-win team with a once-in-a-generation core of up-the-middle talent has had its wings clipped by an owner whose picture should be on the Wikipedia page for Hanlon’s Razor.

Well, the O’s are finally getting out of purgatory. Angelos has agreed to sell the team to a group fronted by billionaire David Rubenstein. The new owners will reportedly purchase 40% of the team now, with Rubenstein replacing John Angelos as the Orioles’ control person once the sale goes through. His group will then have the option to buy full control at a later date.

Even before the sale is official, the Orioles have solved their no. 1 glaring weakness by acquiring Corbin Burnes for a draft pick and two players they didn’t really need. It’s as if the mere mention of Rubenstein changed the omens around the ballclub. Read the rest of this entry »

The San Diego Padres are falling apart a little, having divested themselves this winter of Juan Soto, Trent Grisham, Josh Hader, and (most likely) Blake Snell. But reinforcements are on the way, in the shape of Wandy Peralta, who on Wednesday agreed to a four-year, $16.5 million contract. Peralta might be the second-best active pitcher named Peralta, and the second-best left-handed pitcher in baseball history named Wandy, but he’s still a good reliever.

Peralta made 165 appearances over two and a half seasons with the Yankees, with a cumulative ERA of 2.82 despite pedestrian strikeout numbers. But in the age of heavy metal fastballs and sliders, Peralta is a little more refined and subtle. His most common pitch is a changeup, which is useful against lefties as well as righties, and it’s hard to square up. Read the rest of this entry »

Pity the accounting department for the Braves. They’ve had a terrifically busy offseason, which thus far has amounted to not a whole lot of change in terms of roster composition. Since the end of the postseason, they have signed one major league free agent and made no fewer than eight trades involving at least one major league player. They have also already traded or released not one but five players acquired by trade this offseason.

So what does it all amount to? Read the rest of this entry »

When Shohei Ohtani signed his record-setting contract on Saturday, the phrase “unprecedented deferrals” was at the forefront of the conversation. Not knowing how much “unprecedented” came out to in dollars and cents, we ran with a projection from Jon Becker based on the assumption that Ohtani would receive $400 million of his $700 million contract in deferred money.

At the time, that seemed like such a huge figure I struggled to believe it, even in the face of credible reports that at least half of Ohtani’s salary would be deferred. Surely it wasn’t possible to defer $400 million. But no, apparently the truth is even more incredible: Ohtani is taking a base salary of just $2 million a year, leaving $68 million to paid out, without interest, in each of the first 10 years after the contract ends. Read the rest of this entry »

By now, you’ve probably heard that Shohei Ohtani’s $700 million contract will pay him through 2043, with Ohtani deferring an unprecedented $680 million (over 97% of his contract). The structure calls for Ohtani to earn just $2 million each year of the contract, and then $68 million a year for the 10 years following the deal.

Ohtani will inarguably be taking home $700 million via this deal, and I disagree with the notion that the contract should be described as anything other than that big number from a bottom-line perspective. But what matters, especially with regards to the Competitive Balance Tax (CBT), is the present value of the contract.

Article XXIII of the CBA concerns the CBT, and the key component for determining payrolls for CBT purposes is the average annual value (AAV) of contracts. If Ohtani’s contract didn’t contain any deferrals, his AAV would be $70 million, calculated by simply dividing $700 million by the 10 years of his contract. Where things get complicated is with deferrals. When money is deferred in a contract, the value of that money depreciates over time, and it is the depreciated value of the contract that is used as the numerator, or replacement for the $700 million, in the AAV calculation. Ohtani’s deferrals will be paid without interest, which is key for depreciating the value of the payment; interest would have increased the present value of the contract, and as such, the AAV and corresponding CBT hit. Read the rest of this entry »

No one likes to talk about baseball as a business. Heck, I don’t like to talk about it, and I’m what passes for an expert in the subject around here. It’s tedious, the creeping financialization of everything in life. Baseball should be the crack of the bat and the glint of sunglasses as an outfielder charges across the grass towards a smashed line drive, not an accounting ledger filled with contracts and receipts. But inevitably Major League Baseball, which often gets shortened to “baseball” as though it embodies the entire sport, is about profit, which means it’s about money.

There’s a storm brewing on that front. As Travis Sawchik deftly reported over at The Score, the old way of doing business is standing on wobbly legs. Local TV deals make up a sizable portion of the league’s overall revenue. That makes perfect sense – baseball is a regional game, and its biggest draw, from an entertainment standpoint, is the sheer size of its inventory. Teams play 162 games a year, all through the hardest times to fill programming – the dog days of summer, Saturday evenings, national holidays, you name it. Sportico estimated that teams were paid roughly $2.25 billion for local broadcast rights in 2023. Read the rest of this entry »