All articles tagged with #deferred payments
Bobby Bonilla, a former Mets player, receives $1.19 million every July 1 until 2035 due to a deferred payment deal made in 1999, which has become a celebrated event among Mets fans known as 'Bobby Bonilla Day.' The deal, originally linked to Bonilla's departure from the team, is notable for its long-term payments and the team's embrace of the annual occasion.
Bobby Bonilla, who hasn't played in MLB for over 20 years, continues to receive nearly $1.2 million annually from the New York Mets until 2035 due to a deferred payment deal linked to the Mets' previous investment in Bernie Madoff's Ponzi scheme, highlighting a long-standing practice of deferred sports contracts.
California Controller Malia M. Cohen is urging Congress to cap deferred payments in high-earning contracts, specifically targeting Shohei Ohtani's $700 million, 10-year deal with the Los Angeles Dodgers. The proposed change aims to prevent Ohtani from potentially avoiding California state income taxes on the deferred amount by living outside the state when he receives the payments. Cohen argues that unlimited deferrals for the wealthiest individuals exacerbate income inequality and hinder fair tax distribution, and she believes introducing limits on deductions and exemptions for high-income earners promotes social responsibility and a more equitable tax system.
California Controller Malia M. Cohen is urging Congress to cap deferred payments in the tax code following Shohei Ohtani's record $700 million, 10-year contract with the Los Angeles Dodgers, which includes $680 million in deferred payments due from 2034-43. The change aims to ensure the state receives more tax revenue, as Ohtani could potentially avoid California's high income and payroll taxes if he is not living in the state when he receives the deferred money.
Shohei Ohtani, who recently signed a record-breaking $700 million contract with the Los Angeles Dodgers, has chosen to defer over 97% of the money until after the contract ends. Ohtani explained that he made this decision to help the team with the collective bargaining tax and to enable the Dodgers to sign better players and build a stronger team. Despite the deferrals, Ohtani's compensation will still count as a $46 million cap hit. Ohtani's exceptional performance both as a hitter and a pitcher in the 2023 season solidified his position as one of the top players in the league.
Shohei Ohtani's contract with the Los Angeles Dodgers is structured as a $700 million, 20-year deal, with 97% of the money being deferred and paid out in a lump sum of $68 million annually from 2034 to 2043. The massive deferrals are legal under baseball's collective bargaining agreement, and the structure provides payroll and luxury-tax flexibility for the Dodgers while potentially offering tax benefits for Ohtani. The deal is estimated to have an average annual value of $46 million, making it a record in that regard. The Dodgers have previously used deferred money in long-term contracts, but Ohtani's deal stands out with its significant deferrals.
On July 1st, Bobby Bonilla Day, the New York Mets will pay 59-year-old Bobby Bonilla $1,193,248.20, as they have been doing every year since 2011 and will continue to do so until 2035. This deferred payment arrangement was made in 2000 when the Mets bought out the remaining $5.9 million on Bonilla's contract. The Mets agreed to make annual payments of nearly $1.2 million for 25 years, including 8% interest. Other notable players, such as Bret Saberhagen, Max Scherzer, Manny Ramírez, Ken Griffey Jr., and Todd Helton, also have deferred-money contracts. Some current players in MLB will earn less than Bonilla's annual payment this season.