Shohei Ohtani Is Deferring 97% of His Contract

Eric Hartline-USA TODAY Sports

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 »


Blue Jays Prospect Dasan Brown Is Defensively Gifted

Nathan Ray Seebeck-USA TODAY Sports

Dasan Brown exudes energy, athleticism, and defensive acumen in the outfield. Drafted 88th overall in 2019 — two picks in front of Spencer Steer and 10 in front of Michael Harris II — the 22-year-old Oakville, Ontario, Canada native is coming off of a disappointing season with the stick. In 463 plate appearances with High-A Vancouver, the left-handed speedster slashed just .218/.309/.315 with seven home runs and a 74 wRC+. He did fare better in the Arizona Fall League; flashing more of his potential, he batted a solid .274 with a .342 OBP. Between the regular season and his Surprise Saguaros stint, he swiped 30 bags.

Brown, who is ranked 23rd on our 2024 Blue Jays list with a 40 FV, discussed his skill set following the AFL’s Fall Stars Game.

———

David Laurila: Defense is your strong suit. Is that accurate?

Dasan Brown: “Yeah. I mean, that’s what’s come most naturally to me. As a kid, I just wanted to go get baseballs. As I got older, I learned the skill part of it. I’ve gotten some good coaching here and there, but overall it’s just an instinct. It’s trusting myself out there. I kind of have fun with it. I see the ball up in the air and go get it.” Read the rest of this entry »


Toronto Blue Jays Top 31 Prospects

Eric Longenhagen

Below is an analysis of the prospects in the farm system of the Toronto Blue Jays. Scouting reports were compiled with information provided by industry sources as well as our own observations. This is the fourth year we’re delineating between two anticipated relief roles, the abbreviations for which you’ll see in the “position” column below: MIRP for multi-inning relief pitchers, and SIRP for single-inning relief pitchers. The ETAs listed generally correspond to the year a player has to be added to the 40-man roster to avoid being made eligible for the Rule 5 draft. Manual adjustments are made where they seem appropriate, but we use that as a rule of thumb.

A quick overview of what FV (Future Value) means can be found here. A much deeper overview can be found here.

All of the ranked prospects below also appear on The Board, a resource the site offers featuring sortable scouting information for every organization. It has more details (and updated TrackMan data from various sources) than this article and integrates every team’s list so readers can compare prospects across farm systems. It can be found here. Read the rest of this entry »


The Braves, Angels, and White Sox Play Contract Musical Chairs

David Fletcher
Gary A. Vasquez-USA TODAY Sports

Baseball trades are at their most interesting when they involve players with notable skill sets and teams with widely varying needs. Here, take my Luis Arraez, and I’ll take your Pablo López in return. Your Zac Gallen for my Jazz Chisholm. I suppose the Marlins are, in this way at least, my platonic ideal of a baseball team. But not all trades are like that. Some trades barely care about the skillsets of the players involved and instead depend to an annoying amount on their contracts. Take this one, a trade from last week’s Winter Meetings:

Mariners Get:

Braves Get:

Read the rest of this entry »


With Mookie Betts’ Move to Second, Dodgers Infield Risks Coming Up Short

Jayne Kamin-Oncea-USA TODAY Sports

Before the high-tide news of Shohei Ohtani’s free agency decision washed it away like a sandcastle on the beach, Dodgers manager Dave Roberts made some waves with his comments to the media during the Winter Meetings. While his breaking of the omerta regarding the team’s pursuit of Ohtani received most of the attention — in part because the rest of the narrative pickings out of Nashville were so slim — Roberts divulged the team’s plans regarding their middle infield situation by announcing that Mookie Betts would be a full-time second baseman in 2024. This came on the heels of GM Brandon Gomes stating that the Dodgers plan for former top prospect Gavin Lux to be their everyday shortstop.

Betts, who turned 31 on October 7, is fresh off an MVP-caliber season in which he set a career high with 39 homers, posted a 163 wRC+ (his highest since his 2018 AL MVP-wining campaign) and finished tied with Ronald Acuña Jr. for the major league lead with 8.3 WAR. Betts also split his time between right field, where he’s won six Gold Gloves (most recently in 2022) and the middle infield. His foray onto the dirt came about because Lux, whom the team planned to shift from second base to shortstop last year in the wake of Trea Turner’s departure, tore his right ACL in late February. Amid a winter of cost-cutting, Lux’s move to shortstop left second base in the hands of 23-year-old rookie Miguel Vargas, with Max Muncy moving to third base to replace the departed Justin Turner, and Chris Taylor in the outfield mix after Cody Bellinger was non-tendered. Lux’s injury left Taylor and light-hitting veteran Miguel Rojas the most viable shortstop options.

Betts mainly played second base in the minors, but in Boston he was blocked by Dustin Pedroia, hence the move to right field. Even filling in for Pedroia after he suffered a season-ending injury in 2014 (Betts’ abbreviated rookie campaign) and spotting there occasionally in subsequent years, he made just 30 major league appearances at the keystone before 2023, including 25 starts; he had seven of the former and five of the latter in both 2021 and ’22 with the Dodgers. In 2023, Roberts quickly put him into the mix, and the rejuvenation of Jason Heyward — whom the team signed to a minor-league deal after he was released by the Cubs with one year to go on his eight-year, $184 million contract — gave the Dodgers some additional flexibility. Read the rest of this entry »


Red Sox Trade Two Pitchers to St. Louis, Acquire Brawny Canadian

Katie Stratman-USA TODAY Sports

Last week, Marco Gonzales got traded twice in three days: First from Seattle to Atlanta in the Jarred Kelenic deal, then up the Denny Neagle Highway to Pittsburgh. No one has ever been more traded. You want to know how traded Gonzales is? The only other player he’s ever been traded for, Tyler O’Neill, just got traded too.

The St. Louis Cardinals, sitting on a surfeit of corner outfield types, have sent O’Neill to Boston for pitchers Nick Robertson and Victor Santos. This is not as exciting a trade as it would’ve been two years ago, when O’Neill was coming off a 5.5 WAR season, but it allows the Cardinals to turn a player they probably weren’t going to use into pitching depth. The Red Sox gain some temporary goodwill from the small subset of locals who’ll scan a headline and think that former Speaker of the House Tip O’Neill has returned from the dead. Moreover, they’ve added some right-handed power to a pool of outfielders that could use some. Read the rest of this entry »


Sunday Notes: Dispatches From the Winter Meetings in Nashville

Bob Melvin feels that the San Francisco Giants could use more star power. Hearing the team’s new manager say as much when he met with the media in Nashville earlier this week prompted a question from yours truly. Prefacing it by pointing out that the San Diego Padres team he led last year had no shortage of it, I asked the veteran skipper if it is possible to have too much “star power.”

“Not necessarily,” replied Melvin, whose 2023 Padres underachieved to the tune of an 82-80 record. “It just depends on the makeup. Look, the year before we went to the NLCS in my first year there. Last year was a disappointing season, but I don’t think there’s anything to make of it being a poor year because there was too much star power. They have some really good players there, it just didn’t work out as well.

“I am big on incorporating,” Melvin added. “I think everybody needs a role and everybody needs to feel they’re a part of it. That makes for a much better clubhouse. Everybody feels they’re important. There’s an enthusiasm to that. I think there’s a place for both.”

Scott Harris largely agrees with Melvin. When the subject of impact free agents such as Shohei Ohtani came up, I asked Detroit’s President of Baseball Operations the same question that I’d asked his San Francisco contemporary. Read the rest of this entry »


Effectively Wild Episode 2096: Sho Him the Money

EWFI
Ben Lindbergh and Meg Rowley react to Shohei Ohtani signing a titanic 10-year, $700 million deal with the Dodgers, covering every aspect of the news. Then (57:07) they recount the even-funnier-in-retrospect rumor-related frothing on Friday, when it briefly looked like Ohtani was en route to Toronto to become a Blue Jay.

Audio intro: Nate Emerson, “Effectively Wild Theme
Audio outro: Benny and a Million Shetland Ponies, “Effectively Wild Theme (Horny)

Link to Ohtani’s Insta post
Link to Dodgers payroll page
Link to MLB payroll page
Link to Dodgers depth chart
Link to Dan S. on Ohtani
Link to Baumann on Ohtani
Link to Ben on Ohtani
Link to LHB park factors
Link to Angels mural photo
Link to The Athletic on Ohtani
Link to Passan on the dollar value
Link to Becker on the dollar value
Link to article on endorsements
Link to article on Japanese media
Link to Mintz’s Friday recap
Link to Morosi’s morning tweet
Link to N616RH shirt
Link to opera singer tweet
Link to reply to singer
Link to story on Drake
Link to Bowden tweet 1
Link to Bowden tweet 2
Link to Bowden tweet 3
Link to Bowden “Ralph” story
Link to Domi tweet
Link to Dodgers Nation report
Link to Bemboom tweet
Link to flight tweet
Link to Morosi plane tweet
Link to Nightengale tweet
Link to Herjavec photo
Link to Secret Santa sign-up sheet

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The Dodgers Have Signed Shohei Ohtani. What Does It All Mean?

John Leyba-USA TODAY Sports

Shohei Ohtani is not on a plane to Toronto. He’s not hiding in your linen closet or lurking off the coast of Jamaica in a submarine. After years of intrigue, weeks of speculation, and days of looking for signs in flight plans and sushi restaurants, it’s over. After a free agent courtship to fit the player — in other words, unique — Ohtani will be a Los Angeles Dodger.

This is hardly the most interesting outcome. There will be no reset to the competitive order, no validation of an underdog’s creative sales pitch or intriguing roster construction. The Dodgers were already one of the best and most heavily scrutinized teams in baseball, and if Ohtani doesn’t mind a bit of a commute, he won’t even have to move. But if the destination is a bit of an anticlimax, the contract is dramatic enough to pick up the slack.

Ten years, $700 million. Seven. Hundred. Million. Dollars. Read the rest of this entry »


Shohei Ohtani Is a Dodger

Jayne Kamin-Oncea-USA TODAY Sports

Baseball’s version of Lebron James’ The Decision appears to have come to pass, with all-universe talent Shohei Ohtani announcing on his Instagram that he has found a new home in Los Angeles, this time with the Dodgers. The deal is for 10 years and $700 million.

While the full details of the contract’s “unprecedented” deferrals aren’t yet known, 10 years and $700 million is the mega-contract of all mega-contracts, besting the previous record by hundreds of millions of dollars. And like the Alex Rodriguez signing more than two decades ago, this will likely be the record for a while, including a possible Juan Soto deal next winter. Read the rest of this entry »