Salary Cap By Team

[Oydesseus]

https://x.com/nut_history/status/1978607368351973885?s=46

[Oydesseus]

[Oydesseus]

[Oydesseus]

the no floor issue is real. So is a cap of course. And yes Dodgers deferring salaries is a loophole

 

• This reply was modified 3 weeks, 6 days ago by Oydesseus.

[Java]

In fairness there are a lot of fixed costs to running a team or stadium.  So simply attaching a percentage is a little off

 

If  you generate more revenue baseball is a game of escalating returns so you can afford to pay a higher percentage of them to players.  Example.  Everyone’s front office. Stadium.  Parking concessions and promotion might run $100mil a year.  Whether you’re generating $200 mil or $500 mil.

obviously the team generating $500 mil can afford to pay more since they have $300 m more to work with.  Which also bumps  the percentage.

Dodgers have spent. But so have the Mets.  Ya Kees. Phillies.  Nationals for a time. Padres for a few years.  What the dodgers have done is spend wisely and build that farm system.  Those young players are currency and Friedman has used them repeatedly in deals.   Betts.  Edman.  Glasnow.   Turner and scherzer.

LA spending money is only half the story.  Maybe even less than half.  Their player development.  Their scouting.  Their training staff.  And Friedman are the best in the game

[Oydesseus]

Good points but it leaves out Dodgers deferred salaries

[Java]

Ok but other teams can defer too.  That’s not a special advantage.

I also think they have to allot the value of the deal over the expected life of the deal for salary cap reasons.  So ohtani is still counting for $70 mil a year against that cap.  Even if the dodgers are spending $2 million

[Oydesseus]

I’m not so sure. That’s a BIG assumption. I mean there is actually no cap in MLB so that makes little sense. let me see.

[Oydesseus]

Looks like you’re right here. 3rd or 4th paragraph

https://www.espn.com/mlb/story/_/id/43082037/dodgers-mets-yankees-top-mlb-record-9-luxury-tax-offenders

• This reply was modified 3 weeks, 5 days ago by Oydesseus.

[Java]

Not sure what the question was.  Do they have a cap?  Yes.  Can they exceed it? Yes.  Are there penalties?  Yes.  Are there repeat offender escalators yes.  And if a long term deal amortizes for cap reasons over the life of the contract. Yes.

not sure what the question was

 

and yes.  Other teams can defer money and have.  See the famous Bobby Bonilla and Ken Griffey jr deals

[Oydesseus]

Are Deferred salaries are used for salary “cap” tax/penalty calculations?
answer is yes

• This reply was modified 3 weeks, 5 days ago by Oydesseus.

[Java]

Yep.  Said that too.  Over the life of the deal.  So for penalty trains ohtani still cost the dodgers $70m a year against the cap.  They just have to pay it later.

btw he’s making $190 million in endorsements this year.  A category only Michael Jordan. Tiger woods and one other athlete.  Soccer player I think. Has ever reached.  And they all did it concerning their careers.  Ohtani looks poised to clear $100 million the rest of his career.

he was at $6 milllion in 2021 w the angels.  $20 million in 2022 and $50 million in 2023.  So im not sure how much of this is the dodgers and how much was his agent or ohtani really ramping uo the commercialism on their own.

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