Adam Driver, Two-time Oscar-nominated actor, discusses his upcoming role in the 'Ferrari' film and plays 'Celebrity True or False' to reveal facts about himself. Topics include filming process, attention to detail, humorous anecdotes, and the impact of Justin Herbert's injury.
Shohei Otani's deferred contract with the Dodgers highlights the financial disparity between larger and smaller market teams in Major League Baseball.
The unique salary structure of Shohei Otani's contract may inspire other players to explore similar paths and could impact future player contracts and negotiations.
Deep dives
Deferring of Salaries: The Unique Case of Shohei Otani
Shohei Otani's new contract with the Los Angeles Dodgers has grabbed attention due to its unusual salary structure. While the reported value of the contract is 10 years and $700 million, Otani will only receive $20 million over the first 10 years. The remaining $680 million will be deferred and paid out in equal installments of $68 million per year from 2034 to 2043. This deferral allows the Dodgers to stay below the luxury tax threshold in the present and potentially gives them more wiggle room to acquire additional players. The legality of this structure is permitted by Article XVI of the collective bargaining agreement, which sets no limitations on deferred compensation.
Implications for the Dodgers and MLB
The Dodgers' unique salary structure for Shohei Otani raises questions about its implications for the team and Major League Baseball as a whole. While the Dodgers benefit from the financial flexibility to pursue other players and stay below the luxury tax threshold, it also highlights the vast financial disparity between larger market teams and smaller market teams. The ability to defer salaries in this manner may further accentuate the divide, as teams with more financial resources can offer deferred contracts while smaller market teams may struggle to compete. This case also raises questions about the fairness and effectiveness of the luxury tax system and whether it truly promotes competitive balance in baseball.
The Impact on Other Players and Future Contracts
Shohei Otani's deferred contract with the Dodgers could have an impact on future player contracts and negotiations. While it's an unprecedented salary structure, it could potentially inspire other players to explore similar paths, especially those with off-field endorsement opportunities that can sustain them financially in the short term. This approach could be particularly appealing to players who prioritize long-term financial security and see the benefits of deferring a significant portion of their earnings. However, it remains to be seen whether other teams will follow the Dodgers' lead and whether MLB will consider further regulations or changes to address these evolving contract structures.
The Rise of Financial Creativity in Baseball Contracts
Shohei Otani's unusual contract with the Dodgers highlights the increasing financial creativity in baseball contracts. Teams are finding innovative ways to structure deals and manage their payroll, using deferrals, signing bonus structures, and other mechanisms to optimize their spending and roster composition. While some fans may question the fairness and competitiveness of these contracts, others see them as a natural evolution of the game's financial landscape. As baseball continues to grapple with financial disparities and the challenges of maintaining competitive balance, it is likely that we will see more creative and unique contract structures in the future.
Two-time Oscar-nominated actor Adam Driver joins Rich in-studio to discuss his role as Enzo Ferrari in the upcoming Michael Mann-directed ‘Ferrari’ film, and says what’s fact and what’s fiction about his roles in ‘Law & Order,’ ‘The Last Jedi, ‘Girls’ and more in a round of ‘Celebrity True or False.’
Rich reacts to the Chargers announcing Justin Herbert will miss the rest of the season after undergoing surgery in the index finger of this throwing hand, and weighs in on Shohei Ohtani deferring a whopping $680 million of his record-setting Dodgers contract to allow L.A. to pursue other free agents.